What must a Lees Famous Recipe franchisee do with Customer Data when transferring the Restaurant?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
You have the right to use Customer Data while this Agreement or a successor or renewal Franchise Agreement is in effect, but only in connection with operating the Restaurant and only in accordance with the policies that we establish from time to time.
You may not sell, transfer, or use Customer Data for any purpose other than operating the Restaurant and marketing Lee's Famous Recipe Products and services.
However, if you transfer the Restaurant (as provided in Section 14 below), as part of the transfer, you must also transfer use of the Customer Data to the buyer as part of the total purchase price paid for the Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 69–70)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, if a franchisee transfers their restaurant, they must also transfer the use of Customer Data to the buyer as part of the total purchase price. Lees Famous Recipe defines Customer Data as information related to customers that the franchisee collects while operating the restaurant. Lees Famous Recipe retains ownership of this data. The franchisee's right to use this data is limited to operating the restaurant and marketing Lees Famous Recipe products and services. They are not allowed to sell, transfer, or use the data for any other purpose.
This requirement ensures that the new owner of the Lees Famous Recipe franchise can continue to market to existing customers and maintain relationships. It also protects the customer data by keeping it within the Lees Famous Recipe system. The franchisee must abide by all privacy laws related to consumer, employee, and transactional information. They must also comply with Lees Famous Recipe's standards and policies regarding privacy laws.
This transfer of customer data is a standard practice in franchising, as it helps to maintain continuity and goodwill when a business changes ownership. However, franchisees should be aware of their obligations regarding customer data and ensure that they comply with all applicable laws and regulations. Franchisees should also be aware that Lees Famous Recipe can request this data at any time.