What is Devon Creek's right to the customer data collected by the 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 primarily responsible for maintaining the security and integrity of customer data. Specifically, the franchisee must implement security procedures to protect this data from breaches or unauthorized access. However, the FDD does not explicitly state that Devon Creek has a right to access or utilize the customer data collected by the franchisee.
While Devon Creek maintains a website for the system and includes a listing of the franchisee's contact information, the franchisee loses all rights to this listing upon termination of the agreement. Devon Creek also reserves the right to solicit and service national accounts, potentially impacting the franchisee's customer base. The franchise agreement emphasizes the importance of protecting Devon Creek's confidential information and intellectual property, but it does not specify any rights of Devon Creek to the franchisee's customer data.
Given the franchisee's responsibility for data security and the absence of explicit clauses granting Devon Creek access to customer data, prospective franchisees should seek clarification from Devon Creek regarding data ownership, access, and usage rights. Understanding these aspects is crucial for ensuring compliance and protecting the franchisee's interests.