What is the Face Foundrie franchisee's obligation regarding the separation of customer information related to the franchise from other customer information?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee also agrees that it and all of its Personnel will take appropriate steps to protect Confidential Information from any unauthorized disclosure, copying or use.
At any time upon Franchisor's request, and in any event upon expiration or termination of this Agreement, Franchisee will immediately return any copies of documents where there are materials containing Confidential Information and will take appropriate steps to permanently delete and render unusable any Confidential Information stored electronically.
- 7.03 Data and Customers.
In addition to the obligations set forth in Sections 7.01 and 7.02 above, Franchisee: (a) shall not reproduce, release or in any way make available or furnish, either directly or indirectly, to any person or Entity at any time, any information concerning the customers of Franchisee under this Agreement, which may be used to solicit sales from such customers including, but not limited to, the type of sales covered by this Agreement; (b) shall protect all said customer information from disclosure, destruction, loss or theft during the Term of this Agreement and until all copies of customer lists and copies of all other information concerning customers are turned over to Franchisor; (c) agrees not to use or permit to be used said information concerning Franchisee's customers in any manner except in the performance of this Agreement; and (d) shall at all times maintain any information, including lists, relating to the customers of Franchisee separate and distinct from any customer information Franchisee may maintain that is unrelated to this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees have a clear obligation to keep customer information separate. Specifically, the franchisee must maintain all information, including lists, relating to Face Foundrie customers distinctly separate from any other customer information they might possess that is unrelated to the Face Foundrie franchise. This means that if a franchisee operates other businesses or franchises, the customer data for Face Foundrie must be segregated and not co-mingled with data from those other ventures.
This requirement ensures that Face Foundrie's customer data remains protected and is used solely for the purposes outlined in the franchise agreement. It prevents the franchisee from using Face Foundrie customer data to promote or benefit other businesses they may own. This separation also helps in maintaining the integrity of Face Foundrie's marketing efforts and customer relationships, as the franchisor retains ownership of the customer information.
Furthermore, this obligation extends beyond merely keeping the data separate. The franchisee is also responsible for protecting the customer information from disclosure, destruction, loss, or theft throughout the term of the agreement. This includes taking appropriate measures to secure the data and prevent unauthorized access. Upon termination of the franchise agreement, all copies of customer lists and related information must be turned over to Face Foundrie.
In essence, Face Foundrie places a high priority on protecting customer data and ensuring it is used only to benefit the franchise. By mandating the separation of customer information, Face Foundrie aims to maintain control over its brand and customer relationships, while also complying with data protection regulations.