factual

For what specific purposes can a Hardees franchisee retain, use, or disclose Consumer Information?

Hardees Franchise · 2025 FDD

Answer from 2025 FDD Document

lue Systems, Inc., immediately after the opening of the Franchised Restaurant.

N. Delivery Services

HR requires Franchisee to offer delivery services only through HR's designated providers to customers in Franchisee's market. On or before the Franchised Restaurant opens, Franchisee agrees to enter into the OLO Authorized Operator Agreement with Olo, Inc. Franchisee further agrees to enter into any participation agreement required with HR's designated delivery providers at the same time (currently, the approved delivery providers are Uber Eats, Door Dash, and GrubHub). Unless HR provides its prior

written consent, Franchisee agrees that it will not provide its own delivery service or use its employees to deliver orders to Franchisee's customers.

O. Customer Satisfaction Programs

In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Hardee's Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) secret shoppers, customer survey, or other Quality Assurance ("QA") or similar programs as HR may require. HR will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse HR for all costs related to the Franchised Restaurant associated with any and all of these programs.

P. Consumer Information

Franchisee may only use Consumer Information (as defined below) to the extent necessary to perform Franchisee's obligations under this Agreement during the term hereof and subject to such instructions and restrictions as HR may from time to time impose and in compliance with all data privacy, security and other applicable laws. "Consumer Information" means any identifiers (including name, address, phone numbers, usernames, birthdates and e-mail addresses), sales, transaction, loyalty and payment history, and all other information about or related to any customer or prospective customer, including any information deemed "personal information" or "personal data" under applicable law. As used in this Agreement, the term "customer" refers to any person or entity (i) whose information is collected by any HR system or application or included in any consumer or customer database, file or system owned or controlled by HR, its parent, subsidiary or affiliate companies; (ii) who is included on any marketing or customer lists Franchisee develops or uses or any customer information generally collected and saved for any reason; (iii) who has purchased, purchases or intends to purchase products or services online, through an HR application, or at the Franchised Restaurant; or (iv) who has been solicited to purchase any products or services at the Franchised Restaurant. HR may use the Consumer Information as HR deems appropriate, including sharing it with HR's affiliates.

HR owns all Consumer Information and may use the Consumer Information as it deems appropriate (subject to applicable law), including disclosing it to vendors or sharing it with its affiliates for crossmarketing or other purposes. Franchisee may only use Consumer Information for the purpose of operating the Franchised Restaurant to the extent permitted under this Agreement, including the OPM, during the term hereof and subject to such restrictions as HR may from time to time impose and in compliance with all data privacy, security and other applicable laws. Without limiting the foregoing, Franchisee agrees to comply with applicable law in connection with Franchisee's collection, processing, storage and use of such Consumer Information, including, if required under applicable law, obtaining consents from individuals for HR's and its affiliates' use of the Consumer Information. Franchisee must comply with all laws and regulations relating to data protection, privacy and security, including data breach response requirements ("Privacy Law(s)"), as well as data privacy and security policies, procedures and other requirements HR may periodically establish. Franchisee must maintain reasonable, appropriate, and effective security controls to preserve the security, integrity, availability, confidentiality, and resilience of Consumer Information. Franchisee must notify HR immediately of any suspected data breach at or in connection with the Franchised Restaurant or the business operated at the Franchised Restaurant. Franchisee must fully cooperate with HR and its counsel in determining the most effective way to meet HR's standards and policies pertaining to Privacy Laws, including those governing notification of a data breach. Franchisee is

responsible for any financial losses it incurs or remedial actions that it must take as a result of breach of security or unauthorized access to Consumer Information in Franchisee's control or possession.

Without limiting the foregoing, Franchisee represents, warrants, and covenants that:

  • (1) Franchisee will not "sell" or "share" (as defined under any Privacy Law) any Consumer Information or make Consumer Information available to any third party for valuable consideration;
  • (2) Franchisee will retain, use, or disclose Consumer Information only for the specific business purposes specified in this Agreement, and not for any other commercial or noncommercial purpose;
  • (3) Franchisee will not retain, use, or disclose Consumer Information outside of the direct business relationship between Franchisee and HR;
  • (4) Franchisee will not combine Consumer Information received from or on behalf of HR with personal information received from another source or collected from Franchisee's interactions with a consumer outside the operation of the Franchised Restaurant, except as specifically allowed under applicable Privacy Law;
  • (5) Franchisee shall not allow any person or entity (other than Franchisee's direct employees) to process Consumer Information without the express prior approval of HR, and any such subcontracting shall be performed strictly in accordance with a written agreement that imposes obligations on such subcontractor that are at least as restrictive as those imposed on Franchisee under this Agreement. Franchisee shall be liable for the acts and omissions of all such subcontractors to the same extent Franchisee would be liable if performing the services of each subcontractor directly under the Agreement;
  • (6) When required by applicable Privacy Law, HR will inform Franchisee of any consumer request (e.g., deletion, correction, access, and opt-out) that requires Franchisee's compliance and will provide Franchisee with the information within HR's possession that is necessary for Franchisee to comply with the request. Franchisee will cooperate with HR, and promptly (and in any event within ten days following notice by HR) provide any information and documents requested by Franchisee to respond to requests by customers under Applicable Laws.

Source: Item 22 — Contracts (FDD page 85)

What This Means (2025 FDD)

According to Hardees' 2025 Franchise Disclosure Document, a franchisee can only use Consumer Information to the extent necessary to perform their obligations under the Franchise Agreement during its term. This use is subject to any instructions and restrictions that Hardees may impose and must comply with all data privacy, security, and other applicable laws. Consumer Information includes identifiers like names, addresses, phone numbers, usernames, birthdates, and email addresses, as well as sales, transaction, loyalty, and payment history, and any other information related to customers or prospective customers. Hardees owns all Consumer Information and can use it as deemed appropriate, including sharing it with affiliates for cross-marketing or other purposes.

The Hardees franchisee is permitted to use Consumer Information only for operating the franchised restaurant, as allowed under the agreement and the OPM (Operations Procedures Manual). This use is also subject to restrictions imposed by Hardees and compliance with data privacy and security laws. The franchisee must comply with all laws related to data protection, privacy, and security, including data breach response requirements, and adhere to Hardees' data privacy and security policies. They must also maintain security controls to protect the Consumer Information and notify Hardees immediately of any suspected data breach.

The Hardees franchisee cannot sell or share Consumer Information or make it available to third parties for valuable consideration. They must retain, use, or disclose Consumer Information only for the specific business purposes outlined in the agreement and not for any other commercial or noncommercial purpose. Additionally, they cannot retain, use, or disclose Consumer Information outside the direct business relationship between the franchisee and Hardees. The franchisee also cannot combine Consumer Information received from Hardees with personal information from other sources, except as allowed by applicable Privacy Law. Subcontracting the processing of Consumer Information requires Hardees' prior approval and a written agreement with the subcontractor that imposes obligations at least as restrictive as those on the franchisee.

Hardees will inform the franchisee of any consumer requests (e.g., deletion, correction, access, and opt-out) that require compliance and provide the necessary information within its possession. The franchisee must cooperate with Hardees and promptly provide any requested information and documents to respond to customer requests under applicable laws. The franchisee will also delete, modify, or correct any Consumer Information upon Hardees' request, unless an exception applies under applicable law. The franchisee must provide Hardees with all information necessary to demonstrate compliance with these obligations and cooperate with internal and external auditors for compliance inspections, which may include manual reviews, automated scans, and technical and operational testing, at least once every twelve months.

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.