Who owns the customer data collected by a Devon Creek franchisee?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.3.8 Franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in the Franchised Business and the customer and other data stored therein.
Franchisee, at Franchisee's sole cost and expense, shall implement all computer hardware, software and Internet security procedures, including required updates or upgrades thereto, that are reasonably necessary to protect Franchisee's computer and payment processing systems and the data stored therein from viruses, malware, privacy breaches or other unauthorized access.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchisee is responsible for maintaining the security and integrity of the computer and payment processing systems used in their franchised business, including the customer data stored within those systems. This means the Devon Creek franchisee is responsible for protecting this data from unauthorized access, viruses, malware, and privacy breaches.
In practical terms, this indicates that while Devon Creek franchisees collect customer data, they are also responsible for the security of that data. The franchisee must implement and maintain all necessary computer hardware, software, and internet security procedures to safeguard this information. This includes updates and upgrades to protect the systems and data.
This arrangement is fairly typical in franchising, where franchisees often manage day-to-day customer interactions and data collection. However, it also places a significant responsibility on the franchisee to invest in and maintain robust security measures. A prospective Devon Creek franchisee should carefully consider these obligations and the associated costs when evaluating the franchise opportunity. They should also inquire about any specific data security standards or requirements mandated by Devon Creek to ensure compliance and protect customer information.