What security precautions is a Floyds 99 franchisee required to take to protect 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 the 2025 Floyds 99 Franchise Disclosure Document, franchisees must adhere to specific security measures to protect the Program, which likely refers to proprietary software or systems. These precautions include maintaining the secrecy of the Program and any data generated from its use, both during and after the franchise term. Franchisees are responsible for preventing unauthorized access, use, disclosure, or copying of the Program or its data.
To ensure compliance, Floyds 99 requires franchisees to establish and maintain security precautions as prescribed by the franchisor. These precautions are put in place to maintain the secrecy of the Program and any data generated by its use, and to prevent unauthorized access, use, disclosure, or copying. Additionally, franchisees must ensure that all employees with access to the Program sign a written confidentiality agreement in a form approved by Floyds 99.
Furthermore, 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. They must also use Floyds 99's designated credit card processing service, which operates through the POS system, and take security measures that comply with PCI Security Standards. Floyds 99 also mandates the purchase of designated point-of-sale system data backup software and services, unless already incorporated into the point-of-sale system. Floyds 99 also retains the right to conduct periodic data security and compliance audits, or require franchisees to provide proof of compliance.