What must a Circle K franchisee do to cooperate with the franchisor regarding Privacy Laws?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee is responsible for obtaining appropriate Customer consent to ensure Franchisee and Franchisor may process Customer Information as outlined in this Agreement. Franchisee must notify Franchisor immediately of any suspected data breach at or in connection with the Store. Franchisee must fully cooperate with Franchisor and its counsel in determining the most effective way to meet Franchisor's standards and policies pertaining to Privacy Laws within the bounds of applicable law. Franchisee is responsible for any financial losses it incurs or remedial actions that it must take as a result of breach of security or unauthorized access to Customer Information in Franchisee's control or possession.
- (c) If any federal or state Privacy Law, including the California Consumer Privacy Act, as revised by the California Consumer Privacy Rights Act , Cal. Civ. Code § 1798.100, et seq. (collectively, "CCPA") and any related regulations, applies to the operation of the Store, whenever and to the extent Franchisee operates as a "Service Provider" or "Contractor" under the CCPA, a data processor, or in a similar capacity under any federal or state Privacy Law, Franchisee represents and warrants that:
- (1) Except for the purpose of operating the Store and in accordance with the Business Systems Manuals, Franchisee will not retain, use, combine or disclose any Customer Information;
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees must fully cooperate with Circle K and its counsel to determine the most effective way to meet Circle K's standards and policies pertaining to Privacy Laws within the bounds of applicable law. This includes cooperating with Circle K if they seek to ensure that the franchisee has collected, retained, used, or disclosed Customer Information consistent with Privacy Laws and the Franchise Agreement. This cooperation includes providing requested compliance documents or allowing Circle K to assess, audit, or test the franchisee's privacy and security controls at least annually.
Furthermore, Circle K franchisees must cooperate with Circle K to stop or remediate any unauthorized use of Customer Information, including verifying that the franchisee no longer retains or processes any personal information that a consumer has asked the franchisee or Circle K to delete under applicable Privacy Laws. Franchisees must also notify Circle K immediately if they determine they cannot meet their obligations under Privacy Laws or the Franchise Agreement regarding their collection, retention, use, or disclosure of Customer Information.
In practice, this means a Circle K franchisee must be proactive in understanding and adhering to all privacy laws and Circle K's related policies. They must be transparent and responsive to Circle K's requests for information or audits related to data privacy and security. Failure to comply with these requirements could result in financial losses or remedial actions for which the franchisee is responsible, especially in cases of security breaches or unauthorized access to customer information.