Can a Corner Bakery Cafe franchisee sell Cafe Data?
Corner_Bakery_Cafe Franchise · 2025 FDDAnswer from 2025 FDD Document
10.20 Cafe Data. You agree that all data pertaining to, derived from, or displayed at the Franchised Cafe ("Cafe Data"), including data pertaining to customers and potential customers, is deemed to be owned exclusively by us. You must provide the Cafe Data to us at any time that we request you to do so. You have the right to use Cafe Data during the term of this Agreement, but only in connection with operating the Franchised Cafe and only in accordance with the policies that we establish from time to time. You may not sell, transfer, or use Cafe Data for any purpose other than operating the Franchised Cafe and marketing Corner Bakery Cafe products and services. However, if you Transfer the Franchised Cafe (as provided in Section 15 (Transfers By You)), as part of the Transfer, you may Transfer use of the Cafe Data to the buyer for value. You must protect the Cafe Data in compliance with Applicable Laws and any privacy policies that we specify. You may not publish, disseminate, implement, revise, or rescind a data privacy policy without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Corner Bakery Cafe Franchise Disclosure Document, franchisees generally cannot sell Cafe Data. The FDD defines "Cafe Data" as all data pertaining to, derived from, or displayed at the franchised cafe, including data related to customers and potential customers. Corner Bakery Cafe retains exclusive ownership of this data.
The franchisee has the right to use Cafe Data during the term of the Franchise Agreement, but only in connection with operating the franchised cafe and in accordance with Corner Bakery Cafe's established policies. This usage is restricted to operating the cafe and marketing Corner Bakery Cafe products and services.
However, there is an exception: if a franchisee transfers their Corner Bakery Cafe franchise as permitted under Section 15 of the Franchise Agreement, they may transfer the use of the Cafe Data to the buyer as part of the transfer for value. Otherwise, franchisees are prohibited from selling, transferring, or using Cafe Data for any purpose other than operating the franchised cafe and marketing Corner Bakery Cafe products and services. Franchisees also have an obligation to protect the Cafe Data in compliance with applicable laws and any privacy policies specified by Corner Bakery Cafe and cannot publish or revise any data privacy policy without prior written consent from Corner Bakery Cafe.