Does Mr. Sandless have the right to access a franchisee's customer database on their Computer Equipment?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to access your customer database on your Computer Equipment at any time and you will provide us with access, at your expense, as well as any necessary user IDs and passwords for such access. We may access and download all information stored on your Computer Equipment, including sales and customer information, and there is no limit on our right to access and download this data. We may use the data downloaded from your Computer Equipment in any manner we choose, without compensation to you. Your customer database will, at all times, remain our property.
We reserve the right to require you to install a "systems backup solution" which backs up critical data stored in your computer system using an off-premises storage scheme. At our request, you must provide us with access to your backed up data.
Notwithstanding the fact that you must buy, use and maintain the Computer Equipment under our standards and specifications, you will have the sole and complete responsibility for: (1) the acquisition, operation, maintenance and upgrading of the Computer Equipment; and (2) any and all consequences that may arise if the Computer Equipment is not properly operated, maintained and upgraded, and/or we are not provided with access to the Computer Equipment as we require.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, Mr. Sandless retains the right to access a franchisee's customer database on their computer equipment at any time. The franchisee is obligated to provide access, including any necessary user IDs and passwords, at their own expense.
Mr. Sandless can access and download all information stored on the franchisee's computer equipment, including sales and customer information, without any limitations. The franchisor may use this data in any manner they choose, without providing any compensation to the franchisee. The FDD states explicitly that the customer database will remain the property of Mr. Sandless at all times.
Furthermore, Mr. Sandless reserves the right to require franchisees to install a "systems backup solution" that uses an off-premises storage scheme for critical data. At Mr. Sandless's request, franchisees must provide access to their backed-up data. While franchisees are responsible for the acquisition, operation, maintenance, and upgrading of their computer equipment according to Mr. Sandless's standards, they bear the full responsibility for any consequences arising from improper operation, maintenance, or failure to provide the required access to Mr. Sandless.