Who bears the cost of complying with data protection requirements for Customer Data at a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.3 Privacy Laws.
In the operation of the LearningRx Franchised Business, Franchisee will receive "Customer Data." "Customer Data" is information, records, lists or data that contains "Personal Information." "Personal Information" includes information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer, potential consumer, individual or household, as such term may be further defined or amended by applicable federal, state and local statutes, regulations, ordinances and requirements, including but not limited to, the California Consumer Privacy Act.
Personal Information is collected, maintained or generated in the operation of the LearningRx Franchised Business, including through the use of a point of sale system.
(a) Franchisee agrees, at its sole cost and expense, to at all times:
(b) comply with the data protection, collection, maintenance and use requirements for Customer Data set out in the Operations Manual and this Franchise Agreement, including all policies, procedures and controls that Franchisor implements now or in the future;
(c) comply with all applicable federal, state and local statutes, regulations, ordinances and requirements, including but not limited to, the California Consumer Privacy Act, relating to the data protection, collection, maintenance and use of Customer Data (collectively, "Privacy Laws");
(d) assist and otherwise cooperate with Franchisor to ensure Franchisor's and Franchisee's compliance with applicable Privacy Laws;
(e) promptly notify Franchisor in writing of any Security Incident (defined below) that Franchisee becomes aware of or discovers.
Franchisee will assist and otherwise cooperate with Franchisor to investigate any such Security Incident and will take all required steps, as determined by Franchisor, to remedy Franchisee's noncompliance with applicable Privacy Laws, this Agreement or the Operations Manual.
For purposes of this Section 12.03, "Security Incident" means any actual or suspected accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to Customer Data in violation of applicable Privacy Laws, this Agreement or the Operations Manual.
(f) promptly provide Franchisor with the ability to delete, access or copy Customer Data in Franchisee's possession or control;
(g) promptly notify Franchisor of any request regarding Customer Data received by the Franchisee from a "consumer" as defined by applicable Privacy Laws;
(h) adopt policies, procedures, and controls, including those set out in the Operations Manual, if any, that enable Franchisee to respond, and to cause its agents and employees to respond, promptly to any rights request made pursuant to applicable Privacy Laws, including any disclosure request, deletion request, or opt-out request;
(i) adopt policies, procedures, and controls, including those set out in the Operations Manual, if any, that limit access to Customer Data to only those employees that have a need-to-know basis based on specific job function or role.
Franchisee will provide data privacy and security training to employees who have access to Customer Data or who operate or have access to system controls and will require employees to adhere to data confidentiality terms providing for the protection of Customer Data in accordance with this Agreement and the Operations Manual; and
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs and expenses related to complying with data protection requirements for Customer Data. This includes adhering to Privacy Laws, as defined in the agreement, at the franchisee's sole cost and expense. Customer Data includes any information that constitutes Personal Information, as defined by applicable federal, state, and local statutes, including the California Consumer Privacy Act.
Specifically, the Learningrx franchisee must comply with data protection, collection, maintenance, and usage requirements for Customer Data as outlined in the Operations Manual and the Franchise Agreement. This encompasses all policies, procedures, and controls implemented by Learningrx, both present and future. The franchisee must also comply with all applicable Privacy Laws related to Customer Data.
Furthermore, the Learningrx franchisee is obligated to assist and cooperate with Learningrx to ensure compliance with Privacy Laws. This includes promptly notifying Learningrx of any Security Incident, which involves any unauthorized access to or disclosure of Customer Data. The franchisee must also take steps to remedy any noncompliance with Privacy Laws, the Franchise Agreement, or the Operations Manual, as determined by Learningrx.
In addition, the Learningrx franchisee must provide Learningrx with the ability to delete, access, or copy Customer Data in their possession and notify Learningrx of any consumer requests regarding Customer Data. They must also implement policies and procedures to respond to rights requests made under Privacy Laws, such as disclosure, deletion, or opt-out requests. The franchisee is also required to provide data privacy and security training to employees who handle Customer Data and ensure they adhere to data confidentiality terms.