Who bears the expense of identifying and remediating a security breach within my Ella Cafe franchise?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
If you suspect or know of a security breach, you must immediately give notice of such security breach and promptly identify and remediate the source of any compromise of security breach at your expense. You assume all responsibility for providing all notices of breach or compromise and all duties to monitor credit histories and transactions concerning customers of the franchise business unless otherwise directed by us.
You are solely responsible for protecting yourself from disruptions, Internet Access failures, Internet content failures, and attacks by hackers and other unauthorized intruders and you waive any and all claims you may have against us or our affiliates as the direct or indirect result of such disruptions, security breach and promptly identify and remediate the source of any compromise of security breach at your expense. You assume all responsibility for providing all notices of breach or compromise and all duties to monitor credit histories and transactions concerning customers of the Franchise Business, unless otherwise directed by us.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–33)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with identifying and remediating any security breach. If a security breach is suspected or known, the franchisee must immediately notify Ella Cafe.
The franchisee is required to promptly identify and remediate the source of the security breach at their own expense. This includes taking responsibility for providing all notices of the breach or compromise. The franchisee also assumes all duties to monitor credit histories and transactions concerning customers of the franchise business, unless Ella Cafe directs otherwise.
Furthermore, the Ella Cafe franchisee is solely responsible for protecting themselves from disruptions, internet access failures, internet content failures, and attacks by hackers or other unauthorized intruders. The franchisee waives any claims against Ella Cafe or its affiliates for direct or indirect results of such disruptions or security breaches. This allocation of responsibility is typical in franchising, where franchisees generally bear the costs of operating and securing their individual businesses.