Is a Checkersrallys franchisee allowed to transfer customer data without approval from Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement. You agree not to use, process, copy, display, publish, store or transfer the Customer Data without our approval. You agree to comply with all applicable laws with respect to Customer Data; in addition, you agree to comply with our data privacy and security requirements and to exert commercially reasonable efforts to prevent the unauthorized use, dissemination, or publication of Customer Data, subject in all instances to applicable laws. You shall promptly notify us if you become aware of any unauthorized access to the Customer Data, or if you become the subject of any governmental, regulatory, or other enforcement or private proceeding relating to your data handling practices of Customer Data.
- 9.10 Credit Cards. You agree to use the system and equipment we require for processing credit cards and any costs to do so are at your expense. You agree to abide by (i) the Payment Card Industry ("PCI") Data Security Standards enacted by the applicable Card Associations (as they may be modified at any time and from time to time or as successor standards are adopted);
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, franchisees are responsible for protecting customer data and notifying Checkersrallys of any data breaches. Specifically, franchisees must notify Checkersrallys if they become aware of any unauthorized access to customer data or any governmental or private proceedings related to their data handling practices. Franchisees also assume responsibility for providing notices of breaches and monitoring credit histories related to their restaurant's customers.
Checkersrallys requires franchisees to use specific systems and equipment for processing credit cards and to comply with Payment Card Industry (PCI) Data Security Standards. If a security breach occurs, the franchisee must identify and fix the source of the problem. While the FDD outlines the franchisee's obligations regarding data security and breach notification, it does not explicitly state whether a franchisee needs approval from Checkersrallys to transfer customer data.
Therefore, a prospective Checkersrallys franchisee should clarify with the franchisor the specific protocols and requirements for transferring customer data, including whether explicit approval is needed, to ensure full compliance with Checkersrallys's policies and data protection standards.