For what purpose is a Carls Jr. franchisee permitted to use Consumer Information?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
sed Restaurant opens, Franchisee agrees to enter into the OLO Authorized Operator Agreement with Olo, Inc. Franchisee further agrees to enter into any participation agreement required with CJR's designated delivery providers at the same time (currently, the approved delivery providers are Uber Eats, Door Dash, and GrubHub). Unless CJR provides its prior written consent, Franchisee agrees that it will not provide its own delivery service or use its employees to deliver orders to Franchisee's customers.
O. Customer Satisfaction Programs
In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Carl's Jr. Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as CJR may require. CJR will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse CJR for all costs related to the Franchised Restaurant associated with any and all of these programs.
P. Consumer Information
Franchisee may only use Consumer Information (as defined below) to the extent necessary to perform Franchisee's obligations under this Agreement during the term hereof and subject to 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.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee may only use Consumer Information to the extent necessary to perform their obligations under the Franchise Agreement during its term. This use is subject to instructions and restrictions that Carls Jr. may impose and must comply with all data privacy, security, and other applicable laws. Consumer Information includes identifiers like names, addresses, phone numbers, usernames, birthdates, and e-mail addresses, as well as sales, transaction, loyalty, and payment history, and any other information about customers or prospective customers considered "personal information" or "personal data" under applicable law. The term "customer" refers to anyone whose information is collected by Carls Jr.'s systems, included in any consumer database controlled by Carls Jr., or who purchases or intends to purchase products or services from Carls Jr., whether online, through an application, or at the Franchised Restaurant. Carls Jr. may use the Consumer Information as it deems appropriate, including sharing it with its affiliates.
Carls Jr. owns all Consumer Information and may use it as it sees fit, subject to applicable law. This includes disclosing the information to vendors or sharing it with affiliates for cross-marketing or other purposes. The franchisee's use of Consumer Information is limited to operating the Franchised Restaurant as permitted under the agreement, including the Operations Procedures Manual (OPM). This use is subject to restrictions that Carls Jr. may impose and must comply with all data privacy, security, and other applicable laws. Franchisees must also comply with all laws and regulations relating to data protection, privacy, and security, including data breach response requirements, as well as any data privacy and security policies established by Carls Jr.
Franchisees must maintain reasonable security controls to protect Consumer Information and must immediately notify Carls Jr. of any suspected data breach. They are responsible for any financial losses or remedial actions resulting from a security breach or unauthorized access to Consumer Information under their control. Franchisees cannot sell or share Consumer Information or make it available to third parties for valuable consideration. They must use Consumer Information only for the specific business purposes outlined in the agreement and not for any other commercial or noncommercial purpose. Additionally, franchisees cannot retain, use, or disclose Consumer Information outside of the direct business relationship between the franchisee and Carls Jr.
These stipulations are fairly standard in franchise agreements, as franchisors need to protect customer data and ensure compliance with privacy laws. Prospective Carls Jr. franchisees should be aware of these restrictions and ensure they have the necessary systems and procedures in place to comply with these requirements. Failure to do so could result in financial losses and potential legal repercussions.