factual

Is a Carls Jr. franchisee allowed to 'share' Consumer Information?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

such instructions and restrictions as CJR may from time to time impose and in compliance with all data privacy, security and other applicable laws. "Consumer Information" means any identifiers (including name, address, phone numbers, usernames, birthdates and e-mail addresses), sales, transaction, loyalty and payment history, and all other information about or related to any customer or prospective customer, including any information deemed "personal information" or "personal data" under applicable law. As used in this Agreement, the term "customer" refers to any person or entity (i) whose information is collected by any CJR system or application or included in any consumer or customer database, file or system owned or controlled by CJR, its parent, subsidiary or affiliate companies; (ii) who is included on any marketing or customer lists Franchisee develops or uses or any customer information generally collected and saved for any reason; (iii) who has purchased, purchases or intends to purchase products or services online, through an CJR application, or at the Franchised Restaurant; or (iv) who has been solicited to purchase any products or services at the Franchised Restaurant. CJR may use the Consumer Information as CJR deems appropriate, including sharing it with CJR's affiliates.

CJR owns all Consumer Information and may use the Consumer Information as it deems appropriate (subject to applicable law), including disclosing it to vendors or sharing it with its affiliates for cross-marketing or other purposes. Franchisee may only use Consumer Information for the purpose of operating the Franchised Restaurant to the extent permitted under this Agreement, including the OPM, during the term hereof and subject to such restrictions as CJR may from time to time impose and in compliance with all data privacy, security and other applicable laws. Without limiting the foregoing, Franchisee agrees to comply with applicable law in connection with Franchisee's collection, processing, storage and use of such Consumer Information, including, if required under applicable law, obtaining consents from individuals for CJR's and its affiliates' use of the Consumer Information. Franchisee must comply with all laws and regulations relating to data protection, privacy and security, including data breach response requirements ("Privacy Law(s)"), as well as data privacy and security policies, procedures and other requirements CJR may periodically establish. Franchisee must maintain reasonable, appropriate, and effective security controls to preserve the security, integrity, availability, confidentiality, and resilience of Consumer Information. Franchisee must notify CJR immediately of any suspected data breach at or in connection with the Franchised Restaurant or the business operated at the Franchised Restaurant. Franchisee must fully cooperate with CJR and its counsel in determining the most effective way to meet CJR's standards and policies pertaining to Privacy Laws, including those governing notification of a data breach. Franchisee is responsible for any financial losses it incurs or remedial actions that it must take as a result of breach of security or unauthorized access to Consumer Information in Franchisee's control or possession.

Without limiting the foregoing, Franchisee represents, warrants, and covenants that:

  • (1) Franchisee will not "sell" or "share" (as defined under any Privacy Law) any Consumer Information or make Consumer Information available to any third party for valuable consideration;
  • (2) Franchisee will retain, use, or disclose Consumer Information only for the specific business purposes specified in this Agreement, and not for any other commercial or noncommercial purpose;
  • (3) Franchisee will not retain, use, or disclose Consumer Information outside of the direct business relationship between Franchisee and CJR;

  • (4) Franchisee will not combine Consumer Information received from or on behalf of CJR with personal information received from another source or collected from Franchisee's interactions with a consumer outside the operation of the Franchised Restaurant, except as specifically allowed under applicable Privacy Law;
  • (5) Franchisee shall not allow any person or entity (other than Franchisee's direct employees) to process Consumer Information without the express prior approval of CJR, and any such subcontracting shall be performed strictly in accordance with a written agreement that imposes obligations on such subcontractor that are at least as restrictive as those imposed on Franchisee under this Agreement. Franchisee shall be liable for the acts and omissions of all such subcontractors to the same extent Franchisee would be liable if performing the services of each subcontractor directly under the Agreement;
  • (6) When required by applicable Privacy Law, CJR will inform Franchisee of any consumer request (e.g., deletion, correction, access, and opt-out) that requires Franchisee's compliance and will provide Franchisee with the information within CJR's possession that is necessary for Franchisee to comply with the request.

Source: Item 22 — CONTRACTS (FDD pages 75–76)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee is explicitly restricted from sharing consumer information. CJR owns all consumer information and can use it as they see fit, including sharing it with affiliates.

Carls Jr. franchisees can only use consumer information to operate their franchised restaurant as permitted by the agreement. They must also comply with all data privacy and security laws. Franchisees are responsible for maintaining security controls to protect consumer information and must notify CJR immediately of any suspected data breaches.

The agreement specifies that franchisees cannot sell or share consumer information or make it available to third parties for valuable consideration. They can only use the information for specific business purposes outlined in the agreement and within the direct business relationship between the franchisee and CJR. Franchisees also cannot combine consumer information received from CJR with personal information from other sources, except as allowed by privacy laws.

Carls Jr. will inform the franchisee of any consumer requests related to data (e.g., deletion, correction, opt-out) and provide the necessary information for compliance. Franchisees must cooperate with CJR and provide requested information and documents to respond to customer requests. They must also delete, modify, or correct consumer information at CJR's request, unless an exception applies under applicable law. Carls Jr. may audit the franchisee's compliance with these obligations, including manual reviews, automated scans, and technical testing, at least once every twelve months.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.