factual

What is the Circle K franchisee's responsibility regarding cross-context behavioral advertising with Customer Information?

Circle_K Franchise · 2025 FDD

Answer from 2025 FDD Document

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;

  • (2) Franchisee will not sell, share, make available or otherwise disclose any Customer Information to any third party for valuable consideration or for the purpose of performing cross-context behavioral advertising;

  • (3) Franchisee will not retain, use, or disclose Customer Information outside of the direct business relationship between Franchisee and Franchisor;

  • (4) Franchisee will delete any Customer Information upon Franchisor's request unless Franchisee can prove that such request is subject to an exception under applicable law;

  • (5) If Franchisee receives a Customer Information data request (e.g. a request to delete Customer Information) directly from a consumer (e.g., a California resident under the CCPA or CPRA, or a resident of another jurisdiction under other applicable Privacy Law), Franchisee shall inform Franchisor of that request within one business day and cooperate with Franchisor to ensure that the consumer receives an appropriate and timely acknowledgement and response;

  • (6) Franchisee will implement reasonable security procedures and practices appropriate to the Customer Information it collects, retains, uses or discloses, in order to protect it from unauthorized or illegal access, including following minimum requirements that may be set forth in the Business Systems Manuals;

Source: Item 22 — CONTRACTS (FDD page 100)

What This Means (2025 FDD)

According to Circle K's 2025 Franchise Disclosure Document, franchisees have specific responsibilities regarding customer information and cross-context behavioral advertising. Circle K franchisees are prohibited from selling, sharing, making available, or disclosing any Customer Information to any third party for valuable consideration or for the purpose of performing cross-context behavioral advertising. This restriction is in place to protect customer data and maintain compliance with privacy laws.

Furthermore, franchisees must not retain, use, or disclose Customer Information outside of the direct business relationship between the franchisee and Circle K. If a franchisee receives a Customer Information data request directly from a consumer, they are required to inform Circle K of that request within one business day and cooperate with Circle K to ensure the consumer receives an appropriate and timely acknowledgement and response. Franchisees are also responsible for implementing reasonable security procedures and practices to protect Customer Information from unauthorized or illegal access.

These stipulations ensure that Circle K franchisees adhere to privacy laws and maintain the integrity of customer data. Franchisees are responsible for any financial losses or remedial actions resulting from a breach of security or unauthorized access to Customer Information under their control. Franchisees must also cooperate with Circle K in determining the most effective way to meet Circle K's standards and policies pertaining to Privacy Laws within the bounds of applicable law. These measures are designed to protect both the customer and the Circle K brand.

In practical terms, a prospective Circle K franchisee needs to understand that they cannot use customer data for their own advertising purposes or share it with third parties. They must have systems in place to protect this data and respond promptly to any customer requests related to their personal information. Failure to comply with these requirements could result in financial losses and damage to the reputation of the Circle K brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.