factual

Under the Circle K franchise agreement, what specific actions are franchisees prohibited from taking with Customer Information if the CCPA applies?

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 face specific restrictions regarding customer information if the California Consumer Privacy Act (CCPA) or similar privacy laws apply to their store's operation. In such cases, when the franchisee acts as a 'Service Provider' or 'Contractor' under the CCPA, or a data processor under other privacy laws, they are subject to several prohibitions.

Specifically, Circle K franchisees are not allowed to retain, use, combine, or disclose any Customer Information except for the purpose of operating the store and in accordance with the Business Systems Manuals. They cannot sell, share, make available, or otherwise disclose any Customer Information to any third party for valuable consideration or for cross-context behavioral advertising. Additionally, franchisees must not retain, use, or disclose Customer Information outside of the direct business relationship between the franchisee and Circle K.

Furthermore, franchisees are obligated to delete any Customer Information upon Circle K's request, unless they can demonstrate that such a request is subject to an exception under applicable law. If a franchisee receives a Customer Information data request directly from a consumer, they must inform Circle K of that request within one business day and cooperate with Circle K to ensure the consumer receives an appropriate and timely response. Franchisees must also implement reasonable security procedures to protect Customer Information from unauthorized access, adhering to minimum requirements outlined in the Business Systems Manuals.

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.