What is the scope of the license granted to a Devon Creek franchisee to use customer data?
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)
Based on the 2024 Devon Creek Franchise Disclosure Document, the franchisee is responsible for maintaining the security and integrity of customer data stored within their computer systems. The franchisee must implement all necessary security procedures, including updates, to protect this data from threats like viruses and privacy breaches. This indicates that while franchisees handle customer data, they do so with a significant responsibility for its protection.
Devon Creek emphasizes customer satisfaction, requiring franchisees to strive for complete customer satisfaction, apply high standards of service, and resolve disputes promptly and professionally. If a franchisee fails to resolve a customer dispute, Devon Creek may intervene to protect the brand's reputation, potentially issuing refunds on the franchisee's behalf, which the franchisee must then reimburse. This highlights the franchisor's interest in maintaining customer relationships and brand reputation, even to the point of financial intervention.
Upon termination of the franchise agreement, the franchisee must immediately cease using any of Devon Creek's intellectual property, which would likely extend to any customer data lists or information compiled during the franchise operation. This underscores that the right to use customer data is tied directly to the active franchise agreement and does not extend beyond its termination. Franchisees need to be aware that building a customer base does not translate into owning that data independently of the franchise agreement.