What is the Carvel franchisee's obligation regarding consents and authorizations from customers and vendors for transmitting Customer Information to Carvel and its affiliates?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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 must obtain all necessary consents and authorizations from customers, prospective customers, vendors, and others as required by applicable law. These consents and authorizations are needed to legally transmit Customer Information to Carvel and its affiliates, and for Carvel and its affiliates to use that Customer Information as intended within the Franchise Agreement. Customer Information includes names, contact information, financial information, purchasing history, and market research data related to the customers and prospective customers of the Carvel franchised business.
This requirement ensures that Carvel and its franchisees comply with privacy laws and regulations regarding the collection, use, and transfer of personal data. Franchisees must provide all necessary disclosures to these individuals, ensuring they understand how their information will be used and that they consent to its use and transmission. This is a critical responsibility, as failure to comply with these legal requirements can result in penalties and legal liabilities for both the franchisee and Carvel.
In practical terms, a Carvel franchisee will need to implement procedures for obtaining and documenting these consents and authorizations. This may involve providing privacy notices, consent forms, or other mechanisms to inform individuals about the data collection and usage practices. Franchisees should consult with legal counsel to ensure their practices align with all applicable laws and regulations. Carvel may also provide specific policies and guidelines that franchisees must follow in this regard.
Ultimately, the franchisee bears the responsibility for ensuring that all data collection and transmission activities are conducted in compliance with applicable laws and Carvel's policies. This includes staying informed about changes in privacy laws and adapting their practices accordingly. By fulfilling these obligations, franchisees help protect the privacy of their customers and maintain the integrity of the Carvel brand.