What is Circle K's responsibility in determining the most effective way to meet standards and policies pertaining to Privacy Laws?
Circle_K Franchise · 2025 FDDAnswer 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 will cooperate with Franchisor if Franchisor seeks to ensure that Franchisee has collected, retained, used, or disclosed Customer Information consistent with Privacy Laws and this Agreement, including but not limited to providing Franchisor with requested compliance documents, or allowing Franchisor to assess, audit, or test Franchisee's privacy and security controls at least annually;
Franchisee will cooperate with Franchisor to stop or remediate any unauthorized use of Customer Information, including verifying that Franchisee no longer retains or processes any personal information that a consumer has asked Franchisee or Franchisor to delete under applicable Privacy Laws; and
Franchisee will notify Franchisor immediately if Franchisee determines it cannot meet its obligations under Privacy Laws or this Agreement regarding its collection, retention, use, or disclosure of Customer Information.
Franchisee also acknowledges and agrees that Franchisor may modify these restrictions from time to time by written notice to Franchisee, by issuing updates to Franchisor's standards and policies pertaining to Privacy Laws, including by adding other similar restrictions that may be required under other state or federal Privacy Laws, and Franchisee agrees to comply with the same.
Franchisee also agrees to execute any addenda that Franchisor may determine are required to conform this Agreement to new or changed Privacy Laws.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the franchisee must fully cooperate with Circle K and its counsel to determine the most effective way to meet Circle K's standards and policies regarding Privacy Laws, within the bounds of applicable law. This means that while Circle K sets the standards and policies, the franchisee is expected to work with Circle K to implement them in a way that complies with legal requirements.
This cooperation extends to various aspects of privacy law compliance. For example, the franchisee must cooperate with Circle K if Circle K seeks to ensure that the franchisee has collected, retained, used, or disclosed customer information consistent with Privacy Laws and the franchise agreement. This includes providing requested compliance documents or allowing Circle K to assess, audit, or test the franchisee's privacy and security controls at least annually. The franchisee is also expected to 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 to be deleted under applicable Privacy Laws.
Furthermore, the franchisee is required to notify Circle K immediately if they determine they cannot meet their obligations under Privacy Laws or the franchise agreement regarding the collection, retention, use, or disclosure of Customer Information. Circle K also retains the right to modify privacy restrictions by written notice or updates to its standards and policies, and the franchisee agrees to comply with these changes and execute any addenda required to conform the agreement to new or changed Privacy Laws. These stipulations ensure that Circle K maintains control over privacy standards while requiring franchisees to actively participate in upholding these standards and adhering to legal requirements.
In practice, this means a Circle K franchisee must be prepared to actively engage with Circle K and its legal counsel on matters of privacy law compliance. This includes implementing security procedures, responding to data requests, and staying informed about changes in privacy laws. The franchisee should view this as a collaborative effort, where Circle K provides the framework and the franchisee ensures its implementation aligns with legal and regulatory requirements.