What level of security does Chem Dry guarantee for the Content?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree the Customer List, as defined and governed by your Franchise Agreement, contains account and/or personal customer information and is, therefore, confidential information. As such, you agree not to disclose the Customer List, or any portion thereof, and to take all reasonable precautions to insure that your employees and/or contractors agree not to disclose such information to unauthorized third parties. CDI will use commercially reasonable efforts to protect, and to cause its vendors to protect, the security of the Content, including requiring its vendor to minimally maintain comprehensive general liability and internet professional and security liability insurance coverage, but in any event, CDI makes no representations or warranties concerning the security of the Content.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, Chem-Dry does not make any guarantees regarding the security of franchisee content. While Chem-Dry states that it will use commercially reasonable efforts to protect the security of the content, including requiring its vendor to maintain certain insurance coverages, it explicitly makes no representations or warranties concerning content security. The Customer List, which contains account and personal customer information, is considered confidential information, and franchisees must take precautions to ensure their employees and contractors do not disclose this information to unauthorized third parties.
This means that while Chem-Dry takes some steps to protect data, franchisees ultimately bear the responsibility of safeguarding customer information and should not rely on any guarantees from Chem-Dry regarding data security. Franchisees should implement their own security measures and ensure their staff is trained on data protection practices.
This lack of guarantee could pose a risk to franchisees if data breaches occur. Franchisees may want to inquire about the specific security measures Chem-Dry's vendors have in place and consider obtaining their own cybersecurity insurance to mitigate potential losses from data breaches.