Who exclusively owns the Customer Data generated by a Lees Famous Recipe franchise?

According to Lees Famous Recipe's 2025 Franchise Disclosure Document, the franchisor, owns the customer data. Specifically, all data collected from customers and potential customers in connection with the franchised business is deemed to be exclusively owned by Lees Famous Recipe. However, franchisees have the right to use this data while the Franchise Agreement is in effect, including any successor or renewal agreements. This use is restricted to operating the restaurant and must align with the policies established by Lees Famous Recipe.

This means that while franchisees can utilize customer data to manage and market their specific Lees Famous Recipe location, they do not have ownership of the data itself. Lees Famous Recipe retains control over how this data is managed and can request access to it at any time. This is a common practice in franchising, allowing the franchisor to maintain brand consistency and leverage customer data for broader marketing and strategic initiatives.

Upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease using all Customer Data and return all documents containing Confidential Information to Lees Famous Recipe. This obligation underscores the franchisor's exclusive ownership and control over the data, even after the franchisee's operation ceases. Franchisees must also comply with all laws and regulations relating to privacy and data protection and must comply with any privacy policies or data protection and breach response policies Lees Famous Recipe periodically may establish. Franchisees must notify Lees Famous Recipe in writing immediately of any suspected data breach at or in connection with the Restaurant.