What is the Christian Brothers Automotive franchisee's obligation regarding the use of Customer Information?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
imately purchases any goods or Services from Franchisee. "Customer Information"
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
means any information that Franchisee collects or is required by the Franchisor to collect from and/or maintain about a Customer in connection with the operation of the Franchised Business, including, without limitation, information collected from the point-of-sale systems installed at the Franchised Business. With respect to the privacy of Customer Information, Franchisee will: (i) comply with all applicable privacy laws ("Privacy Laws"); (ii) comply with all mandatory policies in the Confidential Operations Manual that relate to Privacy Laws and the privacy and security of Customer Information; (iii) comply with any posted privacy policy and/or other representations made to Customers, and communicate any limitations required thereby to any authorized receiving party in compliance with all Privacy Laws; (iv) refrain from any action or inaction that could cause Franchisor to breach any Privacy Laws; (v) maintain reasonable physical, technical and administrative safeguards for Customer Information that is in Franchisee's possession or control in order to protect the same from unauthorized processing, destruction, modification, or use that would violate this Agreement or any Privacy Laws; and (vi) undertake any action(s) Franchisor deems necessary to keep Franchisor in compliance with the Privacy Laws. Franchisee will, upon Franchisor's request, provide Franchisor or Franchisor's representatives with access to Franchisee's systems, records, processes and practices that involve processing of Customer Information in order to mitigate a security incident or so that an audit may be conducted. Without limitation to any of the other indemnity obligations in this Agreement, Franchisee will indemnify, defend and hold Franchisor harmless from losses arising out of or relating to: (a) any theft, loss or misuse of Customer Information; and (b) Franchisee's breach of any of the terms, conditions or
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
Property: ____________ 50
obligations relating to data security, privacy, or Customer Information set forth in this
Agreement. Franchisee will immediately notify Franchisor upon discovering or otherwise
learning of any theft, loss or misuse of Customer Information. Franchisee will, at
Franchisor's direction, (x) undertake remediation efforts at Franchisee's sole expense, (y)
undertake efforts to prevent the recurrence of the same type of incident, and (z) reasonably
cooperate with any remediation efforts undertaken by Franchisor. Franchisee will not make
any public comment regarding any data security incident without Franchisor's approval.
Any notifications to the media or to Customers regarding theft or loss of Customer
Information will be handled exclusively by Franchisor at Franchisor's discretion, and
Franchisee may not contact Customers relating to such theft or loss unless Franchisee is
under a legal obligation to notify Customers, in which event (1) Franchisee must notify
Franchisor in writing promptly after concluding that Franchisee has the legal obligation to
notify Customers and (2) Franchisee will limit the notices to Customers to those required
by law or as pre-approved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees have several obligations regarding customer information. "Customer Information" is defined as any information a franchisee collects or is required to collect from customers in connection with operating the franchised business, including data from point-of-sale systems. Franchisees must comply with all applicable privacy laws, mandatory policies in the Confidential Operations Manual related to privacy and security of customer information, and any posted privacy policies or representations made to customers. They must also communicate any limitations required by these policies to any authorized receiving party in compliance with all Privacy Laws. Franchisees are prohibited from any action or inaction that could cause Christian Brothers Automotive to breach any Privacy Laws.
Christian Brothers Automotive franchisees are required to maintain reasonable physical, technical, and administrative safeguards for customer information in their possession or control to protect it from unauthorized processing, destruction, modification, or use that would violate the Franchise Agreement or any Privacy Laws. Franchisees must also take any actions deemed necessary by Christian Brothers Automotive to keep the franchisor in compliance with Privacy Laws. Upon request, franchisees must provide Christian Brothers Automotive or its representatives with access to their systems, records, processes, and practices that involve processing customer information to mitigate a security incident or for audit purposes.
Furthermore, the Christian Brothers Automotive franchisee is obligated to notify the franchisor immediately upon discovering any theft, loss, or misuse of customer information. The franchisee is required to undertake remediation efforts at their own expense, prevent recurrence of similar incidents, and cooperate with any remediation efforts undertaken by Christian Brothers Automotive. Franchisees are prohibited from making any public comment regarding any data security incident without the franchisor's approval. Any notifications to the media or customers regarding theft or loss of customer information will be handled exclusively by Christian Brothers Automotive at its discretion, unless the franchisee is under a legal obligation to notify customers. In such cases, the franchisee must notify Christian Brothers Automotive in writing promptly and limit notices to those required by law or pre-approved by the franchisor. The franchisee must reasonably cooperate in connection with any notices to customers and assist with sending such notices if requested.
These stipulations are typical in franchise agreements to protect customer data and maintain brand reputation. Franchisees should be aware of these obligations and ensure they have adequate systems and procedures in place to comply with privacy laws and protect customer information. Failure to comply with these obligations could result in liability for any theft, loss, or misuse of Customer Information and a breach of the franchise agreement.