Under the Hardees franchise agreement, what specific business purposes are franchisees allowed to retain, use, or disclose Consumer Information for?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 22 — Contracts (FDD page 85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, franchisees can only use consumer information to the extent necessary to fulfill their obligations under the franchise agreement. This use is restricted to the term of the agreement and is subject to any instructions or restrictions Hardees may impose, as well as compliance 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. Franchisees are prohibited from selling or sharing Consumer Information with 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.
Furthermore, franchisees cannot retain, use, or disclose Consumer Information outside of the direct business relationship between the franchisee and Hardees. They are also restricted from combining Consumer Information received from Hardees with personal information from other sources, except as allowed by applicable Privacy Laws. Subcontracting the processing of Consumer Information is prohibited without Hardees's prior approval, and any approved subcontracting must be governed by a written agreement with obligations at least as restrictive as those imposed on the franchisee.