For what purpose can a Circle K franchisee use Customer Information?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- (b) Without limiting the foregoing, Franchisee agrees to comply with applicable law in connection with its collection, storage, disclosure and its use and Franchisor's use of such Customer Information, including complying with all laws and regulations relating to data protection, privacy and security, including data breach response requirements ("Privacy Laws"), as well as data privacy and security policies, procedures and other requirements Franchisor may periodically establish.
Some laws require Franchisee to obtain consent to collect, store, disclose, and use (collectively "process") personal information.
Franchisee 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.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, franchisees can use Customer Information only for operating the store. This usage is permitted under the franchise agreement, including the Business Systems Manuals, during the term of the agreement. However, this use is subject to restrictions imposed by Circle K and must comply with all data privacy, security, and other applicable laws. Customer Information includes contact details, sales and payment history, and any data that can identify a customer.
Circle K retains ownership of all Customer Information and can use it as deemed appropriate, including sharing it with vendors and affiliates. Franchisees must adhere to all applicable laws regarding the collection, storage, disclosure, and use of Customer Information, including data protection, privacy, security, and data breach response requirements. Franchisees are also responsible for obtaining appropriate customer consent to ensure that both the franchisee and Circle K can process Customer Information as outlined in the agreement.
This means that while franchisees can utilize customer data to run their Circle K store, they must do so within strict boundaries set by Circle K and in compliance with privacy laws. They cannot freely use this information for other business ventures or purposes outside the scope of operating the franchise. The franchisee must also notify Circle K immediately of any suspected data breach at or in connection with the store and fully cooperate with Circle K and its counsel.
For a prospective Circle K franchisee, this highlights the importance of understanding data privacy and security obligations. Failing to comply with these regulations could result in legal repercussions and damage the relationship with Circle K. Franchisees should ensure they have systems in place to manage customer data securely and obtain necessary consents, as well as stay informed about any changes to data privacy laws and Circle K's policies.