factual

Who is responsible for protecting customer data from cyberattacks at a Floyds 99 franchise?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

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, the franchisee is solely responsible for protecting customer data from cyberattacks or unauthorized access. The franchisee also waives any claim against Floyds 99 as a result of such attacks or unauthorized access. This means that if a Floyds 99 shop experiences a data breach, the franchisee will bear the responsibility for managing the incident and any associated costs or liabilities.

To ensure data security, Floyds 99 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 must also comply with Floyds 99's standards and specifications, including using Floyds 99's designated credit card processing service and taking security measures that comply with PCI Security Standards.

Furthermore, 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 that Floyds 99 establishes and must not use or disclose customer data in a way that violates Floyds 99's published privacy policy. Franchisees are required to immediately notify Floyds 99 of any actual or suspected data breach or cyberattack at or in connection with the Floyds 99 shop and/or customer data.

These stipulations highlight the importance of data security for Floyds 99 franchisees. Franchisees should carefully consider the costs associated with implementing and maintaining adequate security measures, as well as the potential liabilities in the event of a data breach. It is also important to understand and comply with all applicable laws and regulations, as well as Floyds 99's data protection policies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.