What is City Wide franchisee's obligation to assist and cooperate with the franchisor regarding compliance with applicable Privacy Laws?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees, at its sole cost and expense, to always:
7.34.1 comply with the data protection, collection, maintenance and use requirements for Customer Data set out in the Operating Manual and this Franchise Agreement, including all policies, procedures and controls that Franchisor implements now or in the future.
7.34.2 comply with all applicable federal, state and local statutes, regulations, 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.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, franchisees have specific obligations to assist and cooperate with City Wide to ensure compliance with applicable Privacy Laws. This includes assisting City Wide in investigating any Security Incident and taking steps to remedy any noncompliance with Privacy Laws, the Franchise Agreement, or the Operating Manual. A "Security Incident" is defined as any actual or suspected accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to Customer Data in violation of applicable Privacy Laws, the Agreement, or the Operating Manual.
Specifically, City Wide franchisees must promptly provide City Wide with the ability to delete, access, or copy Customer Data in the franchisee's possession or control. They must also promptly notify City Wide of any request regarding Customer Data received from a "consumer" as defined by applicable Privacy Laws. Furthermore, franchisees are required to adopt policies, procedures, and controls, potentially outlined in the Operating Manual, that enable them and their agents/employees to respond promptly to any rights request made pursuant to applicable Privacy Laws, including disclosure, deletion, or opt-out requests.
In addition, City Wide franchisees must implement policies, procedures, and controls to limit access to Customer Data to employees with a need-to-know based on their job function. They must also provide data privacy and security training to employees who access Customer Data or system controls, ensuring they adhere to data confidentiality terms. Franchisees are also responsible for maintaining Customer Data in confidence. Overall, these measures ensure that both the franchisee and City Wide adhere to data protection standards and maintain customer trust.