What must a City Wide franchisee do if they become aware of or discover a Security Incident?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ations, ordinances and requirements, including but not limited to, the California Consumer Privacy Act, relating to the data protection, collection, maintenance and use of Customer Data (collectively, "Privacy Laws");
- 7.34.3 assist and otherwise cooperate with Franchisor to ensure Franchisor's and Franchisee's compliance with applicable Privacy Laws.
- 7.34.4 promptly notify Franchisor in writing of any Security Incident (defined below) that Franchisee becomes aware of or discovers. Franchisee will assist and otherwise cooperate with Franchisor to investigate any such Security Incident and will take all required steps, as determined by Franchisor, to remedy Franchisee's noncompliance with applicable Privacy Laws, this Agreement, or the Operating Manual. For purposes of this Section 7.34.4, "Security Incident" means any actual or suspected accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to Customer Data in violation of applicable Privacy Laws, this Agreement or the Operating Manual.
- 7.34.5 promptly provide Franchisor with the ability to delete, access or copy Customer Data in Franchisee's possession or control.
- 7.34.6 promptly notify Franchisor of any request regarding Customer Data received by Franchisee from a "consumer" as defined by applicable Privacy Laws.
- 7.34.7 adopt policies, procedures, and controls, including those set out in the Operating Manual, if any, that enable Franchisee to respond, and to cause its agents and employees to respond, promptly to any rights request made pursuant to applicable Privacy Laws, including any disclosure request, deletion request, or opt-out request.
- 7.34.8 adopt policies, procedures, and controls, including those set out in the Operating Manual, if any, that limit access to Customer Data to only those employees that have a need-to-know basis based on specific job function or role. Franchisee will provide data privacy and security training to employees who have access to Customer Data or who operate or have access to system controls and will require employees to adhere to data confidentiality terms providing for the protection of Customer Data in accordance with this Agreement and the Operating Manual; and
- 7.34.9 maintain Customer Data in confidence in accordance with Section 9 of this Franchise Agreement.
- 7.35 Compliance; Indemnification.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, a franchisee has specific obligations upon discovering a Security Incident, which is defined as any actual or suspected accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to Customer Data that violates applicable Privacy Laws, the Franchise Agreement, or the Operating Manual. The franchisee must assist and cooperate with City Wide in investigating the Security Incident.
Specifically, the franchisee must take all steps required by City Wide to remedy any noncompliance with Privacy Laws, the Franchise Agreement, or the Operating Manual. This includes promptly providing City Wide with the ability to delete, access, or copy Customer Data in the franchisee's possession or control. Additionally, the franchisee is obligated to promptly notify City Wide of any request regarding Customer Data received from a consumer as defined by applicable Privacy Laws.
Furthermore, the franchisee must adopt and implement policies, procedures, and controls, including those outlined in the Operating Manual, to respond promptly to any rights request made under applicable Privacy Laws. These requests may include disclosure, deletion, or opt-out requests. Access to Customer Data must be limited to employees with a need-to-know based on their specific job function or role. Franchisees are also required to provide data privacy and security training to employees who handle Customer Data or have access to system controls, ensuring they adhere to data confidentiality terms. Finally, franchisees must maintain Customer Data in confidence, as detailed in Section 9 of the Franchise Agreement.
In the event of a Cyber Event, City Wide reserves the right to manage the response, including investigation, containment, resolution, and communications. The franchisee may be responsible for reimbursing City Wide for out-of-pocket costs incurred in responding to and remedying any Cyber Event if it is determined to have been caused solely by the franchisee or directly related to the franchisee's business operations. Franchisees are also expected to seek advice from their own legal and security consultants to ensure compliance with data security safeguards.