factual

Who owns the customer data collected by a Hck Hot Chicken franchisee?

Hck_Hot_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

ranchisee shall cooperate with Franchisor in connection with the conduct of such test marketing and shall comply with the Franchisor's rules and regulations established from time to time in connection herewith.

  • 9.5 Customer Reporting and Comments.
  • 9.5.1 At Franchisor's request, and subject to applicable law, Franchisee shall use reasonable efforts to secure the names, addresses and other information reasonably required by Franchisor, of Franchisee's customers at the Restaurant and shall allow such information to be used by Franchisor only for the "HCK Hot Chicken" brand. Franchisee may not divulge such customer names, addresses or other information, with or without remuneration, to any third party. Franchisee shall respond promptly to each customer inquiry or complaint and resolve all reasonable complaints to the customer's satisfaction.
  • 9.5.2 At Franchisor's request, Franchisee shall purchase, use and display in the Restaurant during all operating hours, any required, as specified in the Brand Standards Manual, physical or electronic devices or systems to gather customer information and comments regarding their experience at the Restaurant, or HCK Hot Chicken Restaurants in general.

SECTION 10. REPORTS, BOOKS AND RECORDS, INSPECTIONS

10.1 General Reporting. Franchisee shall, as and when specified by Franchisor, submit to Franchisor statistical control forms and such other financial, operational and statistical information (by paper, facsimile, email, or other method of transmission) as Franchisor may require to: (i) assist Franchisee in the operation of the Franchised Restaurant in accordance with the System; (ii) allow Franchisor to monitor the Franchisee's Gross Sales, purchases, costs and expenses; (iii) enable Franchisor to develop chain wide statistics which may improve bulk purchasing; (iv) assist Franchisor in the development of new authorized products or the removal of existing unsuccessful Authorized Products; (v) enable Franchisor to refine existing Authorized Products; (vi) generally improve chain wide understanding of the System (collectively, the "Information"). Without limiting the generality of the foregoing:

  • 10.1.1 Franchisee will electronically link the Franchised Restaurant to Franchisor and itsthird-party supplier and will allow Franchisor to poll on a daily or more frequent basis.
  • 10.1.2 For restaurants not on the "HCK Hot Chicken" Information System, at Franchisor's request, on or before Wednesday of each Week during the Term hereof, Franchisee shall submit a Gross Sales report signed by Franchisee, on a form prescribed by Franchisor, reporting all Gross Sales for the preceding Week, together with such additional financial information as Franchisor may from time-to-time request. If the Franchisee fails to submit any required report when due, Franchisee must pay a fee of $100 per occurrence and $100 per Week until the Franchisee submits the required report, which shall be deposited into the Brand Fund or such other fund as Franchisor may designate.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)

What This Means (2025 FDD)

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken retains specific rights regarding customer data. While franchisees may collect customer information, they must, upon Hck Hot Chicken's request and in accordance with applicable laws, use reasonable efforts to gather customer names, addresses, and other information. This data is explicitly for the use of the Hck Hot Chicken brand.

Franchisees are prohibited from sharing this customer information with any third party, whether for payment or not. Additionally, Hck Hot Chicken may require franchisees to purchase and use physical or electronic devices to collect customer feedback and information within their restaurants.

Furthermore, franchisees must adhere to all privacy laws concerning customer, employee, and transactional data and comply with Hck Hot Chicken's privacy standards and policies. Franchisees cannot independently publish or change a data privacy policy without the franchisor's written consent. This indicates that while franchisees may collect some customer data, Hck Hot Chicken maintains control over how that data is used and protected, ensuring it benefits the brand and complies with legal requirements.

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.