Is a Carvel franchisee allowed to sell or transfer customer information?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Use of Customer Information. You must only use Customer Information to market Approved Products to customers in accordance with the policies that we may establish periodically and applicable Laws. You may not sell, transfer, or use Customer Information for any purpose other than marketing Approved Products and the Franchised Business. We and our affiliates may use Customer Information in any manner or for any purpose. You must secure from your customers, prospective customers, vendors, and others all consents and authorizations, and provide them all disclosures, that applicable Law requires to transmit Customer Information to us and our affiliates, and for us and our affiliates to use that Customer Information, in the manner that this Agreement contemplates.
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are restricted in how they can use customer information. Customer Information includes names, contact information, financial information, purchasing history, market research data, and other personal information of customers and prospective customers.
Carvel franchisees are explicitly prohibited from selling or transferring customer information. They can only use this information to market Approved Products to customers, and this must be done in accordance with Carvel's established policies and applicable laws. Carvel and its affiliates, however, have broader rights, as they can use customer information in any manner or for any purpose.
This restriction means a Carvel franchisee cannot independently monetize customer data or use it for purposes outside of marketing Carvel products. Franchisees must also obtain all necessary consents and authorizations from customers, prospective customers, vendors, and others to transmit customer information to Carvel and its affiliates, ensuring that Carvel and its affiliates can use that information as intended under the agreement and in compliance with applicable laws. This protects customer data and ensures it is used in a way that benefits the Carvel system as a whole, while limiting the franchisee's control over that data.