What am I prohibited from doing with the Confidential Information for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
enforcement of these covenants. Franchisee shall retain all written Confidentiality Agreements with Franchisee's business records for the time period specified in the Operations Manual. Franchisee shall enforce all covenants and shall give Franchisor notice of any breach or suspected breach
of which Franchisee has knowledge.
All data pertaining to the Franchised Business, and all data created or collected by Franchisee in connection with the System, or in connection with operation of the Franchised Business (including without limitation data pertaining to or otherwise concerning customers) is and will be owned exclusively by Franchisor, and Franchisor will have the right to use such data in any manner that it deems appropriate without compensation to Franchisee, including to communicate directly to the customers of the Franchised Business, and to provide updates, information, newsletters, and special offers to customers. Upon termination of this Agreement, Franchisee shall have no further right to access or use any such information.
Franchisee shall not contest, directly or indirectly, Franchisor's ownership of or right, title or interest in Franchisor's trade secrets, proprietary computer software, copyrighted materials, methods or procedures or contest Franchisor's right to register, use or license others to use any of such trade secrets, proprietary computer software, copyrighted materials, methods and procedures. Franchisee, including its officers, directors, equity owners, and employees, and any of their immediate family, heirs, successors and assigns, is prohibited from using and/or disclosing any Confidential Information in any manner other than as permitted by Franchisor in writing. Any development used by or in connection with the Closet & Storage Concepts System is part of the System and Franchisor's Confidential Information, whether the development is developed by Franchisor, its affiliates, Franchisee, or any other present, former or future Closet & Storage Concepts System franchisee or their employees.
5.8 Proprietary Marks.
5.8.1 Ownership.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, as a franchisee, you are significantly restricted in how you can handle the franchisor's confidential information. Closet Storage Concepts considers its 'System' and related information, including trade secrets, specifications, business methods, research, manuals, vendor agreements, marketing strategies, and customer data, as confidential. You cannot acquire any ownership interest in this information beyond using it to support your franchise during the franchise term.
Specifically, you are prohibited from forwarding or providing the confidential information to any third party. Additionally, you cannot store it on any personal or third-party electronic device, disk, or drive unless expressly authorized by Closet Storage Concepts. This means you must maintain strict control over the data and prevent unauthorized access or distribution. All data pertaining to the franchised business, including customer data, is owned exclusively by Closet Storage Concepts, which can use it without compensating you. Upon termination of the franchise agreement, your right to access or use this information ceases.
Furthermore, you are not allowed to contest Closet Storage Concepts' ownership of its trade secrets, software, copyrighted materials, methods, or procedures. You are also prohibited from using or disclosing any confidential information in any manner not explicitly permitted in writing by Closet Storage Concepts. Any developments related to the Closet Storage Concepts system, whether created by the franchisor, franchisee, or other franchisees, become part of the system and the franchisor's confidential information. This underscores the franchisor's control over the system's intellectual property and limits your ability to independently use or share any related knowledge or innovations.