Under what conditions can a Lees Famous Recipe franchisee use Customer Data?
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, franchisees have the right to use customer data while the Franchise Agreement is in effect, or during a successor or renewal Franchise Agreement. However, this use is specifically limited to operating the restaurant and must align with the policies established by Lees Famous Recipe.
The agreement strictly prohibits franchisees from selling, transferring, or using customer data for any purpose other than operating the restaurant and marketing Lees Famous Recipe products and services. If a franchisee transfers their restaurant, they must also transfer the use of customer data to the buyer as part of the restaurant's total purchase price. This ensures that customer data remains within the Lees Famous Recipe system and supports the ongoing operation of the franchise.
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 underscores that Lees Famous Recipe retains ownership of the customer data, and the franchisee's right to use it is contingent upon the active Franchise Agreement. Franchisees must also comply with all applicable privacy laws and Lees Famous Recipe's standards and policies related to these laws, ensuring the protection of consumer, employee, and transactional information.
Lees Famous Recipe also restricts the use of Generative AI in the operation of the restaurant without prior written consent. This includes advertising, marketing, communications with customers, and business planning. Franchisees are prohibited from uploading or sharing confidential information, including customer data, with unapproved third-party platforms, including Generative AI. This is to protect sensitive information and maintain control over how the brand is represented and managed.