Is a Moes Southwest Grill franchisee allowed to sell or transfer customer information?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Use of Customer Information. You must only use Customer Information to market Approved Products to customers in accordance with the policies that we may establish periodically and applicable Laws. You may not sell, transfer, or use Customer Information for any purpose other than marketing Approved Products and the Franchised Business. We and our affiliates may use Customer Information in any manner or for any purpose. You must secure from your customers, prospective customers, vendors, and others all consents and authorizations, and provide them all disclosures, that applicable Law requires to transmit Customer Information to us and our affiliates, and for us and our affiliates to use that Customer Information, in the manner that this Agreement contemplates.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are restricted in how they can use customer information. The FDD defines "Customer Information" as names, contact information, financial information, purchasing history, market research data, and other personal information related to customers and prospective customers of the franchised business.
The agreement explicitly states that a Moe's Southwest Grill franchisee may not sell or transfer customer information for any purpose other than marketing approved products and the franchised business. This means franchisees cannot profit from or share customer data with third parties outside of the approved marketing activities.
Moe's Franchisor SPV LLC and its affiliates, however, retain the right to use customer information in any manner or for any purpose. The franchisee is obligated to obtain all necessary consents and authorizations from customers and vendors to allow the transmission and use of customer information by Moe's Franchisor SPV LLC and its affiliates. This clause highlights the franchisor's control over customer data and limits the franchisee's autonomy in this area, which is a fairly common practice in franchising to maintain brand consistency and customer relationships.