How is a Floyds 99 franchisee allowed to use customer data?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor shall own all customer contact information and other customer information ("Customer Data"), wherever located, and Franchisee shall facilitate access to such information upon request from Franchisor.
Franchisee shall only use the Customer Data as a processor as necessary to operate Franchisee's FLOYD'S 99 Shop for the initial term unless Franchisee obtains Franchisor's prior written approval.
Franchisee has no right to sell, transfer, sublicense or otherwise share Customer Data to or with any third party, unless Franchisee obtains Franchisor's prior written approval, or the third party is a service provider bound to substantially similar obligations as in this Section and Franchisee remains liable for their use.
Franchisee will comply with all directives and terms in the Operations Manual respecting Franchisee's use of the Customer Data.
Franchisor may access Customer Data at the FLOYD'S 99 Shop and Franchisee will allow Franchisor to audit Franchisee's records to confirm compliance with these provisions.
Franchisee must provide to Franchisor usernames and passwords to access the Customer Data.
Franchisee is solely responsible for protecting Customer Data from cyberattacks or unauthorized access, and Franchisee waives any claim it may have against Franchisor as the direct or indirect result of such attacks or unauthorized access.
Franchisee must comply with all applicable federal, state, and local laws and regulations concerning the storage, handling, use and protection of Customer Data.
In addition, Franchisee must comply with any data protection and breach response policies Franchisor periodically may establish and must not use or disclose Customer Data in a manner that would cause Franchisor to be in violation of Franchisor's published privacy policy.
Franchisee must notify Franchisor immediately of any actual or suspected data breach or cyber-attack at or in connection with the FLOYD'S 99 Shop and/or Customer Data.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor owns all customer data. As such, a franchisee can only use the customer data as a processor as necessary to operate their Floyds 99 shop during the initial term of the franchise agreement. Any other use requires the franchisor's prior written approval.
Floyds 99 franchisees are explicitly prohibited from selling, transferring, sublicensing, or sharing customer data with any third party unless they obtain prior written approval from the franchisor. An exception exists if the third party is a service provider bound by similar obligations regarding data use and the franchisee remains liable for their use. Franchisees must also comply with all directives and terms outlined in the Floyds 99 Operations Manual concerning the use of customer data.
Floyds 99 has the right to access customer data at the franchisee's shop and audit the franchisee's records to ensure compliance with these data provisions. Franchisees are required to provide usernames and passwords to facilitate this access. Furthermore, franchisees bear sole responsibility for protecting customer data from cyberattacks or unauthorized access and must comply with all applicable data protection laws and the franchisor's data protection policies. Franchisees must also immediately notify Floyds 99 of any data breaches or cyberattacks.