What agreement must the spouses of Closet Storage Concepts franchisees sign?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, spouses of franchisees are required to sign the Confidentiality, Non-Disclosure, and Non-Competition Agreement. This agreement is included as Exhibit "3(b)" in the FDD. This requirement ensures that confidential information and trade secrets of Closet Storage Concepts are protected, even by individuals who are closely related to the franchisee but not directly involved in the business.

The purpose of this agreement is to prevent the unauthorized disclosure of sensitive business information and to restrict competitive activities that could harm Closet Storage Concepts. By signing this agreement, the spouse agrees to maintain the confidentiality of the information they may become privy to and to not engage in any business ventures that directly compete with Closet Storage Concepts during the term of the franchise agreement and for a specified period thereafter.

This requirement is a fairly standard practice in franchising, particularly when dealing with proprietary systems and confidential business information. It is important for prospective franchisees to fully understand the implications of this agreement, including the restrictions it places on their spouses, and to review the specific terms outlined in Exhibit "3(b)" carefully. Franchisees should discuss this with their legal counsel to ensure they understand the full scope of the agreement and its potential impact.