For Expense Reduction Analysts, what constitutes an act that would be considered injurious or prejudicial to the goodwill associated with the Confidential Information and the System?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
Data Security Event means any act, both actual or suspected, that initiates either internally or from outside the Business' computers, point-of-sale terminals, and other technology or networked environment and violates any laws or explicit or implied security policies, including attempts (either failed or successful) to gain unauthorized access (or to exceed authorized access) to the System, other ERA businesses, or their data or to view, copy, or use Privacy Information or Confidential Information without authorization or in excess of authorization; unwanted disruption or denial or service; unauthorized use of a system for processing or storage of data; and changes to system hardware, firmware, or software characteristics without Franchisor's knowledge, instruction, or consent.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, a Data Security Event is considered an act that would be injurious or prejudicial to the goodwill associated with the Confidential Information and the System.
A Data Security Event includes any actual or suspected act, whether internal or external to the business's computer systems, point-of-sale terminals, or other networked environments. This covers any violation of laws or security policies, whether explicit or implied. Examples of such violations include attempts to gain unauthorized access to the system, other Expense Reduction Analysts businesses, or their data. It also includes unauthorized viewing, copying, or use of Privacy Information or Confidential Information.
Furthermore, Data Security Events encompass unwanted disruptions or denial of service, unauthorized use of a system for processing or storing data, and changes to system hardware, firmware, or software without the franchisor's knowledge, instruction, or consent. For a prospective franchisee, this means that maintaining robust data security measures is not only a legal and ethical obligation but also crucial for preserving the goodwill associated with the Expense Reduction Analysts brand and system. Any failure to protect data or any unauthorized modification of systems could have serious repercussions.