What security precautions must a Mrcool franchisee take to maintain the confidentiality of the Business Management System Data?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) Other than permitting access to employees of the Franchised Business for the purpose of conducting the authorized operations of the Franchised Business, Franchisee shall not permit nor allow any third party to access, utilize or duplicate the Business Management System or the Business Management System Data without Franchisor's prior written consent;
- (8) Franchisee shall keep and maintain the Business Management System and the Business Management System Data as secret and confidential and Franchisee shall maintain security precautions to maintain the confidentiality and secrecy of the Business Management System Data and to prevent the unauthorized access or use; and
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees must maintain security precautions to ensure the confidentiality and secrecy of the Business Management System Data and to prevent unauthorized access or use. The Business Management System includes software, internet-based systems, and customer relationship management systems used in the MRCOOL Center's operations. The Business Management System Data encompasses forms, data, tools, customer information, inventory, and sales information entered into or maintained within the system.
Specifically, franchisees are only permitted to allow employees of the Franchised Business to access the Business Management System for conducting authorized operations. Franchisees are prohibited from allowing any third party to access, utilize, or duplicate the Business Management System or its data without Mrcool's prior written consent. This restriction ensures that sensitive business information remains protected from external entities.
Upon the expiration or termination of the Franchise Agreement, the franchisee must preserve and maintain the Business Management System data for the purpose of transferring it to Mrcool. Additionally, franchisees must provide and permit Mrcool to maintain direct and independent access to the Business Management System, electronically transferring all Business Management System Data to Mrcool. These measures ensure Mrcool retains control and ownership of the data, safeguarding its proprietary information and customer data.