Who owns the customer data collected at a Floyds 99 franchise?
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 the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 owns all customer data collected by a franchisee. This includes all customer contact information and other customer information, regardless of where it is stored. The franchisee is required to facilitate access to this information upon request from Floyds 99.
As a franchisee, you are only allowed to use the customer data as necessary to operate your Floyds 99 shop during the initial term of your agreement, unless you receive prior written approval from Floyds 99. You are prohibited from selling, transferring, sublicensing, or sharing customer data with any third party without Floyds 99's prior written approval, unless the third party is a service provider bound by similar obligations, and you remain liable for their use.
You 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 your shop and audit your records to ensure compliance. You are responsible for providing usernames and passwords to access the customer data and for protecting it from cyberattacks and unauthorized access. Additionally, you must adhere to all applicable data protection laws and regulations and notify Floyds 99 immediately of any data breaches or cyberattacks. You must also comply with any data protection and breach response policies Floyds 99 establishes 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.
This arrangement is fairly common in franchising, as it allows Floyds 99 to maintain control over customer information and ensure consistent brand messaging and customer service across all locations. It also allows Floyds 99 to leverage customer data for marketing and other purposes. However, it also places a significant responsibility on the franchisee to protect customer data and comply with all applicable laws and regulations.