Is the Circle K franchisor allowed to share Customer Information with its affiliates?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisor owns all Customer Information (as defined below) and may use the Customer Information as it deems appropriate (subject to applicable law), including disclosing it to vendors.
Franchisee may only use Customer Information for the purpose of operating the Store to the extent permitted under this Agreement, including the Business Systems Manuals, during the term hereof and subject to such restrictions as Franchisor may from time to time impose and in compliance with all data privacy, security and other applicable laws. "Customer Information" means any contact information (including name, address, phone and fax numbers, and e-mail addresses), sales and payment history, and all other information about any customer, including any personal information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular individual or household.
As used in this Agreement, the term "customer" refers to any person or entity (i) included on any marketing or customer lists that Franchisee develops or uses; (ii) who has purchased or purchases products or services at the Store; or (iii) whom Franchisee has solicited to purchase any products or services at the Store.
Franchisor may use the Customer Information as it deems appropriate, including sharing it with its Affiliates.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K owns all Customer Information and may use it as it deems appropriate, subject to applicable law. This includes disclosing customer information to vendors and sharing it with its affiliates. Customer Information includes any contact information (name, address, phone and fax numbers, and e-mail addresses), sales and payment history, and all other information about any customer. The term 'customer' refers to any person or entity included on marketing or customer lists, who purchases products or services at the store, or whom the franchisee has solicited to purchase any products or services at the store.
This means that Circle K franchisees must understand that the customer data they collect while operating their franchise store is not owned by them, but by Circle K. Circle K has the right to use this information for its own purposes, including marketing and advertising, and can share it with its affiliated companies. Franchisees are only allowed to use Customer Information for the purpose of operating the Store to the extent permitted under the Franchise Agreement, including the Business Systems Manuals, during the term hereof and subject to such restrictions as Circle K may from time to time impose and in compliance with all data privacy, security and other applicable laws.
Circle K franchisees are responsible for complying with all applicable laws regarding data protection, privacy, and security, including obtaining appropriate customer consent to ensure that both the franchisee and Circle K can process Customer Information as outlined in the agreement. Franchisees must also notify Circle K immediately of any suspected data breach at or in connection with their store and fully cooperate with Circle K in addressing privacy law compliance.
Furthermore, Circle K may modify the restrictions regarding Customer Information from time to time by written notice to the franchisee or by issuing updates to Circle K's standards and policies pertaining to Privacy Laws. Franchisees must also execute any addenda that Circle K may determine are required to conform the Franchise Agreement to new or changed Privacy Laws. If a franchisee engages a third party (a 'Subprocessor') to handle Customer Information, they must notify Circle K and ensure that the third party is bound by a written contract with the same restrictions and obligations.