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What are the specific obligations of a City Wide franchisee related to protecting the confidentiality of customer information (Item 9) as outlined in the franchisee's obligations (Item 9)?

City_Wide Franchise · 2025 FDD

Answer from 2025 FDD Document

a medical doctor) reasonably determines that Franchisee is incapacitated or incapable of running the Franchised Business, and to receive a reasonable fee for such services.

  • 7.33 Tax Documentation. Franchisee shall submit copies of all tax returns, tax filing documents, tax withholding documents, proofs of insurance, certificates of good standing, and other documentation as required and set forth in the Operating Manual, and as from time to time modified therein.
  • 7.34 Privacy Laws. In the operation of the CITY WIDE Franchised Business, Franchisee will receive "Customer Data." "Customer Data" is information, records, lists or data that may contain "Personal Information." "Personal Information" includes information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer, potential consumer, individual or household, as such term may be further defined or amended by applicable federal, state and local statutes, regulations, ordinances and requirements, including, but not limited to, the California Consumer Privacy Act. Personal Information is collected, maintained, or generated in the operation of the CITY WIDE Franchised Business, including through the use of a point of sale system.

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.
  • 7.35 Compliance; Indemnification. Franchisee hereby covenants to always comply with all federal, state, and local laws, rules, and regulations governing the utilization of subcontractors in the performance of delivering services to Franchisee's customers, and Franchisee agrees to hold CITY WIDE harmless and indemnify CITY WIDE from liability for failure to comply with such laws, rules and regulations.
  • 7.36 Franchisee will be solely responsible for ensuring that all of its employees, contractors and subcontractors, including any individuals providing services on Franchisee's behalf, are legally authorized to work in the jurisdiction which the Franchised Business operates. Franchisee shall comply with all applicable immigration, employment and labor laws including but not limited to the verification of employment eligibility and citizenship status as required by law. Franchisee hereby agrees to maintain appropriate records and, upon request, provide Franchisor with evidence of such compliance.
  • 7.37 Best Efforts. In consideration of CITY WIDE's agreement to grant the franchise, Franchisee will at all times use Franchisee's best efforts to promote and increase the sales and service of

the System and to affect the widest and best possible promotion and service to potential customers for the Franchised Business's products and designated service and product lines. Franchisee's failure to devote Franchisee's best efforts to adequately represent the Marks and the System at Franchisee's Location will be deemed to be just cause for CITY WIDE to terminate this Agreement.

CITY WIDE MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE USE, VALIDITY OR ENFORCEABILITY OF ANY COPYRIGHTS REFERENCED IN THIS AGREEMENT.

**SECTION 8.

What This Means (2025 FDD)

According to City Wide's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the confidentiality and protection of customer data. City Wide franchisees must comply with data protection requirements outlined in the Operating Manual and the Franchise Agreement, including any policies and procedures implemented by City Wide. They must also adhere to all applicable federal, state, and local statutes and regulations, such as the California Consumer Privacy Act, related to the protection, collection, maintenance, and use of Customer Data.

Franchisees are required to assist and cooperate with City Wide to ensure compliance with Privacy Laws and must promptly notify City Wide in writing of any Security Incident they become aware of or discover. A "Security Incident" 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. Franchisees must also assist City Wide in investigating any Security Incident and take steps to remedy any noncompliance.

Furthermore, City Wide franchisees must provide City Wide with the ability to delete, access, or copy Customer Data in their possession or control and promptly notify City Wide of any requests regarding Customer Data received from a consumer as defined by applicable Privacy Laws. They must adopt policies, procedures, and controls 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. Access to Customer Data should be limited to employees with a need-to-know based on their job function. Franchisees are also obligated to provide data privacy and security training to employees who handle Customer Data and ensure they adhere to data confidentiality terms. Franchisees must maintain Customer Data in confidence, in accordance with Section 9 of the Franchise Agreement.

City Wide may provide IT services to the franchisee, including security and access passwords, and the franchisee must exert its best efforts to protect each Technology System against a cyber event. If a cyber event occurs, City Wide has the right to control the response, and the franchisee may be required to reimburse City Wide for out-of-pocket costs if the event was caused solely by the franchisee. Franchisees must also obtain advice from their own legal and security consultants to ensure they operate the franchised business in full compliance with data security safeguards.

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.