Buying a Franchise: Secure Access to Your Outlet’s Sales Data

A centralised till system can make running an outlet easier, but it can also leave prospective franchisees dependent on access controlled by someone else. If you receive only turnover summaries, how can you check cancelled transactions, discounts or funds that have not yet arrived? Within a franchise network, clear data access arrangements help build trust. Before buying, make sure these rights are set out in writing, rather than merely promised during a presentation.

1. Check which data you can actually access

Do not stop at asking whether the franchise package includes a till system. Request a demonstration using an account with the same access level as a franchisee’s account. The head office view may include features that are unavailable to outlet managers.

Check whether you can view and download:

• Transactions by outlet, date, product and payment method.
• Discounts, cancellations, refunds and the reasons for any changes.
• Inventory movements, stock adjustments and wastage.
• Payment processing fees deducted and payouts from ordering platforms.
• A history of transaction changes and the accounts responsible for them.

Distinguish between rights to view, download and edit. You need sufficient records to review the business, but not every employee needs permission to delete transactions. Separating access permissions helps strengthen internal controls.

Ask for a sample downloaded file, not just screenshots. Make sure the data can be read by the bookkeeping software you intend to use, without additional processing services that have not been explained.

2. Include access rights in the agreement

Indonesia has specific franchise legislation: Government Regulation No. 35 of 2024 on Franchising, which replaced Government Regulation No. 42 of 2007. It governs franchise operations based on agreements and specifies what those agreements must contain, including the parties’ rights and obligations. However, do not assume these general provisions automatically give you unrestricted access to all of the franchisor’s systems.

Turn your data requirements into measurable contractual obligations. A technology schedule should specify the types of reports, the period covered by available data, update frequency, download formats and who will help if reports do not reconcile.

One possible clause to discuss with your legal adviser is: “The franchisee shall have access to its outlet’s transaction records throughout the term of the agreement and may download them in a format suitable for bookkeeping and business reviews.” Add time limits for addressing service disruptions and a procedure for requesting copies of data.

Also check whether the franchisor can change features or suspend accounts unilaterally. Propose that payment disputes should not automatically remove read-only access to records needed to meet bookkeeping and tax obligations. This is something to negotiate, not an automatic right you should assume you have.

3. Calculate technology costs and test transaction reconciliation

System costs do not necessarily end when you buy the till equipment. Request a list of charges for subscriptions, additional accounts, storage, equipment upgrades, application integrations, technical support and archive retrieval. Ask who has the authority to increase fees and how you will be notified.

Find out, too, who signs the contract with the system provider. If the franchisor controls the entire relationship, you may not be able to seek help directly from the provider. The complaints process and responsibility for resolving issues must therefore be clear.

Carry out a simple test using sample data that does not identify customers:

1. Obtain a transaction report for one reporting period.
2. Separate cash sales, electronic payments and orders placed through apps.
3. Reconcile transactions with fee deductions, refunds and payouts.
4. Request a written explanation of any discrepancies.

The aim is not to test profit claims, but to ensure that every figure can be traced. If only head office can perform the reconciliation, ask for a review procedure that still gives you supporting evidence.

4. Protect customer data and plan for backup access

Transaction data is not necessarily personal data. Names, telephone numbers and other information that can identify customers require attention under Law No. 27 of 2022 on Personal Data Protection. The right to run an outlet does not mean you are free to copy customer lists for any marketing purpose.

Map out who determines the purposes of data processing and who processes data on another party’s instructions. Request a clear allocation of responsibilities covering the lawful basis for processing, access restrictions, security, incident handling and customer requests. For business reviews, prioritise reports without personal identifiers where those identifiers are unnecessary.

Finally, ask what happens if the internet connection fails, the system provider changes or the franchise relationship ends. Agree on backup arrangements, archive retrieval, the period of read-only access and data deletion in line with legal obligations. Keeping business records must be distinguished from permission to use customer data for promotions.

Practical takeaway: before signing, arrange a demonstration of a franchisee account, test one report through to reconciliation with its payouts, and attach the agreed data access terms to the contract. Do not rely on promises that all reports can be requested later.