CCTV for Franchisors?
Geoffrey Sturgess - Partner, Blake Lapthorn Solicitors
The landlord of a London pub was recently informed by the police that his licence application would not be granted unless he installed CCTV on the premises. The landlord considered that this was a restriction on his customers’ civil liberties, and the police backed down when the Information Commissioner intervened in the dispute, claiming that this requirement raised “serious privacy concerns”. Currently the police may only recommend that such conditions be met before a licence is granted. However, new legislation currently being debated by Parliament would give the police the power to impose such licensing conditions, not only for pubs but for shops and off licences as well.
This dispute may be of interest in franchising. Franchisors of pubs may try and include as a condition of their franchise agreement an obligation on franchisees to install CCTV on the business premises. Franchisors currently have no general legal grounds on which to insist that this be done, as CCTV is not a pre-requisite to a licence for alcohol consumption being granted, although it is of course unlikely that franchisees will have the necessary bargaining power to negotiate the terms of their agreement with the franchisor.
Some franchisors are already requiring CCTV, visible at head office, to be installed as a term of the franchise agreement. Whether they could require this as a change in the Operating Manual must be open to question.
Franchisors and franchisees should remember that the primary purpose of CCTV is to record the actions of individuals. As such, its use is likely to be subject to the provisions of the Data Protection Act 1998 (the DPA). The DPA places obligations on organisations that deal with personal data, but also gives individuals the right to know when an organisation holds personal information about them, and the right to claim compensation if they suffer damage as a result. Franchisees need to be aware that if they use CCTV, even where this is at the request of the franchisor, it is their responsibility to make sure they comply with the DPA.
If you would like further information or advice please contact Blake Lapthorn.Information kindly supplied by Geoffrey Sturgess, Partner, Commercial Team, Blake Lapthorn.
Tags: cctv, franchising, franchisors, geoffrey sturgess, Information Commissioner, landlord
