What rights does Craters & Freighters have regarding data derived from sales reports?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Each report and financial statement referenced above must be signed and verified by Franchisee in the manner Franchisor prescribes. Franchisor will have the right to use and/or disclose any data derived from such sales reports, so long as Franchisor does not specifically identify Franchisee in connection with such data or sales reports.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, Craters & Freighters has specific rights regarding the data derived from franchisee sales reports. Craters & Freighters retains the right to use and/or disclose any data derived from these sales reports. However, Craters & Freighters is restricted from specifically identifying the franchisee in connection with the data or sales reports.
This means that while Craters & Freighters can analyze and utilize sales data for various purposes, such as market research, benchmarking, or improving the overall system, they must anonymize the data to protect the franchisee's identity. This protects the franchisee's sensitive business information from being directly associated with specific sales figures.
This policy is fairly standard in franchising, as franchisors often need to collect and analyze sales data from all franchisees to understand system-wide performance and trends. The restriction on identifying individual franchisees ensures a level of privacy and prevents the franchisor from potentially using sales data to the detriment of a specific franchisee. Franchisees should ensure that Craters & Freighters adheres to this policy and clarify how their data will be anonymized and used.