What is the franchisee's responsibility regarding privacy laws at a Floyds 99 shop?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
or may avail itself of all remedies provided for herein in the event of default.
- f. Customer Data. 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.
- g. Generative AI.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, franchisees have several responsibilities regarding customer data and compliance with privacy laws. Floyds 99 retains ownership of all customer data, and the franchisee is only allowed to use this data as necessary to operate their shop, unless they receive prior written approval from Floyds 99. The franchisee cannot sell, transfer, sublicense, or share customer data with third parties without Floyds 99's approval, unless the third party is a service provider with similar obligations, in which case the franchisee remains liable for their use of the data. Franchisees must also comply with all directives in the Operations Manual regarding the use of customer data. Floyds 99 has the right to access customer data at the shop and audit the franchisee's records to ensure compliance.
The franchisee is responsible for protecting customer data from cyberattacks and unauthorized access and waives any claims against Floyds 99 resulting from such incidents. Franchisees must comply with all applicable federal, state, and local laws and regulations concerning the storage, handling, use, and protection of customer data. They must also adhere to any data protection and breach response policies established by Floyds 99 and must not use or disclose customer data in a way that violates Floyds 99's published privacy policy.
Furthermore, franchisees are obligated to immediately notify Floyds 99 of any actual or suspected data breach or cyberattack at their shop or involving customer data. More generally, franchisees must operate their Floyds 99 shop in compliance with all applicable federal, state, and local laws, including data security and privacy laws, to maintain a good public image in the business community.
In summary, a Floyds 99 franchisee must be proactive in protecting customer data, compliant with all relevant privacy laws and Floyds 99's policies, and transparent in reporting any data breaches or cyberattacks. These measures are crucial for maintaining customer trust and protecting the Floyds 99 brand reputation.