Under what conditions can a Hardees franchisee use Consumer Information?
Hardees Franchise · 2025 FDDAnswer 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.
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 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 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 e-mail addresses, as well as sales, transaction, loyalty, and payment history, and any other information about customers or prospective customers considered "personal information" or "personal data" under applicable law. Hardees retains the right to use Consumer Information as it deems appropriate, including sharing it with its affiliates.
The agreement specifies that franchisees cannot sell or share Consumer Information or make it available to any third party for valuable consideration. Franchisees must use Consumer Information only for the specific business purposes outlined in the agreement and not for any other commercial or noncommercial purpose. Additionally, franchisees cannot retain, use, or disclose Consumer Information outside the direct business relationship between the franchisee and Hardees. They are also prohibited from combining Consumer Information received from Hardees with personal information from other sources, except as allowed under applicable Privacy Law.
Franchisees must not allow any person or entity (other than their direct employees) to process Consumer Information without Hardees's express prior approval. Any subcontracting of this nature must be performed under a written agreement that imposes obligations on the subcontractor at least as restrictive as those imposed on the franchisee. Hardees will inform the franchisee of any consumer request (e.g., deletion, correction, access, and opt-out) that requires the franchisee's compliance and will provide the necessary information within its possession for the franchisee to comply with the request when required by applicable Privacy Law. Franchisees must cooperate with Hardees and promptly provide any requested information and documents to respond to customer requests under Applicable Laws.
Furthermore, franchisees are obligated to delete, modify, or correct any Consumer Information upon Hardees's request unless they can prove that such a request is subject to an exception under applicable law. Franchisees must also make available to Hardees all information necessary to demonstrate compliance with their obligations related to Consumer Information. Hardees, along with its internal and external auditors, may inspect, examine, and assess the franchisee's compliance through measures including manual reviews, automated scans, and technical and operational assessments.