What is the Floyds 99 franchisee required to do regarding security precautions for the Program?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ii) copy or reproduce the Program, any component thereof or any data generated by the use of the Program, in any manner, except for one copy of the Program for normal back-up and operations thereof; provided nothing contained herein shall prohibit the Franchisee from using the data generated by the Program to the extent reasonably necessary to comply with local, state and federal law and for usual and customary business purposes.
- e. The Franchisee shall keep the Program and any data generated by the use of the Program confidential during and after the term hereof, and shall establish and maintain such security precautions as are prescribed by the Franchisor from time to time to maintain the secrecy of the Program and any data generated by the use of the Program, and to prevent the unauthorized access to or use, disclosure or copying of the Program or any data generated by the use of the Program. The Franchisee shall cause each of its employees who has access to the Program to execute a written confidentiality agreement in a form prescribed or approved in writing by the Franchisor. The Franchisee shall immediately inform the Franchisor in writing if an employee breaches the written confidentiality agreement or otherwise violates the terms and conditions of this Section 16.1, or if the Franchisee learns of any actual or possible unauthorized disclosure of the Program or any data generated by the use of the Program, such as the loss or theft of any tangible medium (such as a diskette), documentation or other component thereof.
- f.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, franchisees must adhere to specific security measures to protect the Program and data. Franchisees are required to establish and maintain security precautions as prescribed by Floyds 99 to keep the Program and any data generated by its use confidential, preventing unauthorized access, use, disclosure, or copying. This obligation extends both during and after the franchise term.
To ensure compliance, Floyds 99 mandates that franchisees cause each employee with access to the Program to execute a written confidentiality agreement in a form prescribed or approved by Floyds 99. This formalizes the employees' responsibility to maintain confidentiality and protect the Program.
In addition to these measures, franchisees must purchase, install, and implement computer data security hardware and software, firewall protection, and security breach insurance through Floyds 99's designated or approved supplier. Franchisees also agree to comply with Floyds 99's standards and specifications, including using Floyds 99's designated credit card processing service, which operates through the POS System, and taking security measures that comply with PCI Security Standards. If a data security breach occurs, the Franchisee must immediately notify the Franchisor and comply with all investigation and remediation efforts related to such breach consistent with the Franchisor's standards and specifications. The Franchisee authorizes vendors designated or approved by the Franchisor to conduct periodic data security and compliance audits and to perform remediation measures pursuant to the Franchisor's standards and specifications or the Franchisee shall provide proof of compliance to the Franchisor.
These requirements ensure that franchisees take proactive steps to protect sensitive information and maintain the integrity of the Floyds 99 system. Failure to comply with these security measures could result in penalties or termination of the franchise agreement.