Customer data when franchising a business in Argentina

Before franchising a business, it is worth deciding who will be able to access your customers’ data and for what purposes. A database currently managed by the owner may end up being shared across outlets, technology providers and sales teams. Setting these rules in advance protects individuals and helps build a franchise network without carrying over informal practices that are difficult to control.

1. Identify what data flows through the business and who decides how it is used

The first step is not to buy another software package: it is to map how information moves through the business. Review what happens when someone books an appointment, buys online, joins a loyalty programme or makes a complaint.

For each process, record:

• What data is requested and what is genuinely necessary.
• Who receives it and where it is stored.
• Which people or companies can access it.
• What it is used for and how long it is retained.
• What happens when a customer asks for it to be corrected or deleted.

Include spreadsheets, phones and messaging accounts. A well-protected central platform is not enough if complete customer lists are then exported to personal devices.

Do not confuse access for business purposes with permission to use data for anything. An outlet’s ability to look up a purchase to process a return does not mean it can automatically add that customer to its marketing campaigns. Nor should you assume that everyone in the network can view every database.

2. Apply Argentina’s legal framework without confusing contracts with consent

Argentina specifically regulates franchise agreements under Articles 1512 to 1524 of the Civil and Commercial Code of the Nation, enacted by Law No. 26,994. This framework governs the relationship between franchisor and franchisee, but does not replace personal data obligations.

For customer databases, the key legislation is Personal Data Protection Law No. 25,326, together with its implementing regulations and the rules issued by Argentina’s Agency for Access to Public Information. The law sets out requirements covering data quality, information provided to data subjects, consent where required, security, confidentiality, and rights of access, rectification and deletion.

Before collecting data, you must explain, among other things, the purpose of processing and who is responsible for the database. There are statutory exceptions to the consent requirement: for example, certain data needed to establish or fulfil a contractual relationship may be processed without seeking additional consent. This exception does not authorise uses unrelated to that purpose.

Sharing information between legally independent companies may constitute a transfer of personal data. Article 11 sets conditions for such transfers, including consent where required. A clause agreed between franchisor and franchisee does not override the customer’s rights.

With specialist advice, identify who is responsible for each database, review any applicable registration requirements and check the rules on international transfers if the platform stores information outside Argentina.

3. Turn decisions into contractual and technical rules

Prepare a data processing annex that reflects how the business actually operates. Simply stating that the database “belongs to the brand” is not enough: personal data remains subject to the rights of the individuals concerned, regardless of the customer list’s commercial value.

The annex should specify:

• Permitted purposes: handling orders, bookings, loyalty benefits or marketing communications, as appropriate.
• Responsibilities: who informs customers, handles requests and manages permissions.
• Access: what each outlet can view and what information the central team needs.
• Providers: conditions for using platforms, messaging services and storage services.
• Incidents: who to notify, how to preserve evidence and who coordinates the response.
• Termination: returning information, retaining it where justified or deleting it, and revoking access.

Build these rules into the system through individual user accounts, role-based permissions, stronger authentication and access logs. Avoid shared passwords and indiscriminate data exports.

If you need to compare outlets’ performance, consider using aggregated information. To measure the number of repeat purchases, for example, each franchisee does not necessarily need to see the names and phone numbers of customers at other outlets.

4. Test the process before granting access

Carry out a practical test using dummy data. Simulate a customer access request, an accidental download of contacts and the removal of a user account. Check that someone is clearly responsible and that the system can carry out what has been agreed.

Also define which records must be retained to meet legal obligations and which can be deleted. Do not promise to delete all information immediately if retention duties apply; equally, do not keep data indefinitely simply for convenience.

Document the results and correct permissions before bringing in your first franchisee. Repeat the review whenever you change platforms or introduce a new business purpose for using the data.

Practical conclusion: before sharing a customer database, settle three questions: who is accountable for it, which uses are permitted and how access is withdrawn. If any answer depends on a verbal agreement, more preparation is needed.