What is the Christian Brothers Automotive franchisee's obligation regarding the use of Data?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
isor. Franchisee will reasonably cooperate in
connection with any notices to Customers regarding theft or loss of Customer Information
and Franchisee will assist with sending such notices if so requested.
10.29 Data. Franchisor may, from time-to-time, specify in the Confidential Operations Manual
or otherwise in writing the Customer Information and other data that Franchisee shall
collect and maintain in connection with the operation of the Franchised Business. All data
created or collected by Franchisee in connection with the System, or otherwise provided
by Franchisee, including, without limitation, data uploaded to, or downloaded from
Franchisee's point-of-sale systems and accounts (collectively, "Data") is and will be owned
exclusively by Franchisor, and Franchisor will have the right to use such Data in any
manner that Franchisor deems appropriate without compensation to Franchisee. Copies
Franchise Agreement (Ver 04-14-2025)
Franchisee: ___________
Franchisor: Christian Brothers Automotive Corporation
and/or originals of Data must be provided to Franchisor upon Franchisor's request.
Franchisor hereby licenses use of the Data back to Franchisee for the term of this
Agreement, at no additional cost, solely for Franchisee's use in connection with the
Franchised Business.
- RECORDS, AUDITS AND REPORTING REQUIREMENTS.
11.01 Financial Statements and Reports. Franchisee must comply with all accounting, financial
and reporting requirements set out in the Confidential Operations Manual or other similar
correspondence. Franchisee's failure to comply with all accounting, financial and
reporting requirements set out in the Confidential Operations Manual or other similar
correspondence shall constitute a material breach of this Agreement.
11.02 Records. Franchisee shall record and maintain records of its revenues and expenditures as
set forth in the Confidential Operations Manual or otherwise. Franchisee's failure to make
and maintain records in such manner shall constitute a material breach of this Agreement.
11.03 Audits. Franchisor may during regular business hours enter Franchisee's premises to
inspect, audit and make copies of books of account, bank statements, documents, records,
sales tax returns, papers, and files of Franchisee relating to the business transacted by
Franchisee, and upon request by Franchisor, Franchisee shall make any such materials
available for examination at Franchisee's premises. If any such inspection and/or audit
determines that Franchisee has paid Franchisor all amounts that should have been paid to
Franchisor pursuant to the terms of this Agreement, all costs associated with conducting
such inspection and/or audit shall be the responsibility of 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 specific obligations regarding data collection, maintenance, and usage. Christian Brothers Automotive may specify the customer information and other data that the franchisee must collect and maintain in connection with the operation of the franchised business. All data created or collected by the franchisee in connection with the system, including data uploaded to or downloaded from the franchisee's point-of-sale systems and accounts, is owned exclusively by Christian Brothers Automotive. Christian Brothers Automotive has the right to use this data in any manner it deems appropriate without compensating the franchisee.
The franchisee must provide copies and/or originals of data to Christian Brothers Automotive upon request. Christian Brothers Automotive licenses the use of the data back to the franchisee for the term of the agreement, at no additional cost, solely for the franchisee's use in connection with the franchised business. This means that while the franchisee collects and uses the data daily, Christian Brothers Automotive retains ownership and control over how that data is ultimately utilized.
Furthermore, the franchisee must comply with all applicable privacy laws and mandatory policies in the Confidential Operations Manual related to privacy laws and the security of customer information. They must also adhere to any posted privacy policy and refrain from any action that could cause Christian Brothers Automotive to breach any privacy laws. Franchisees are required to maintain reasonable safeguards for customer information in their possession to protect it from unauthorized processing, destruction, modification, or use that would violate the agreement or any privacy laws. Franchisees must also take any actions Christian Brothers Automotive deems necessary to keep Christian Brothers Automotive in compliance with privacy laws.
Franchisees must provide Christian Brothers Automotive or its representatives with access to their systems, records, processes, and practices involving the processing of customer information to mitigate security incidents or conduct audits. Additionally, franchisees are obligated to indemnify, defend, and hold Christian Brothers Automotive harmless from losses arising out of any theft, loss, or misuse of customer information, as well as any breach of the terms and conditions related to data security and privacy. This comprehensive approach ensures that Christian Brothers Automotive maintains control over critical data while requiring franchisees to uphold strict standards of data protection and privacy.