For what purpose can a Chocolate Bash franchisee use the licensed customer data?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to CB Franchising.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, customer data generated or obtained by the franchisee is considered Confidential Information belonging to CB Franchising. The franchisee's use of this information is restricted to the extent necessary for the operation of the Chocolate Bash business.
The Franchise Agreement states that the franchisee (or guarantor) must adhere to all security procedures prescribed by Chocolate Bash for maintaining confidentiality. They can only disclose such information to their employees to the extent necessary for the business's operation. The franchisee is explicitly prohibited from using this information in any other business or in any manner not specifically authorized or approved in writing by Chocolate Bash.
This means a Chocolate Bash franchisee cannot leverage customer data for independent ventures or purposes outside the scope of their franchised business without express written consent from Chocolate Bash. The franchisee must also exercise a high degree of diligence to maintain the confidentiality of all such information during and after the term of the Franchise Agreement and promptly report any unauthorized disclosure or use of Confidential Information. These obligations regarding confidential information survive the termination or expiration of the Franchise Agreement indefinitely.