What does the Confidential Information for Closet Storage Concepts include?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | | Business the Franchisor's trade names, service marks, trademarks, logos, emblems, and indicia of origin | | | | | (the "Proprietary Marks"), as they may be changed, improved and further developed from time to time in | | | | | the Franchisor's sole discretion. | | |
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- The Franchisor, as the result of the expenditure of time, skill, effort and resources, has developed and owns a distinctive format and system (the "System") relating to the establishment and operation of Closet & Storage Concepts businesses. The Franchisor possesses certain proprietary and confidential information relating to the operation of the System, which includes proprietary trade secrets, specifications, security protocols, computer hardware and systems, technology and equipment used, methods of business practices and management, research and development, training processes, operational manuals, presentation materials, vendor agreements, supplier lists, vendor lists, marketing and merchandising strategies, plans for new product or service offerings, and knowledge of, and experience in, the operation of the Franchised Business (the "Confidential Information"). Confidential Information shall also expressly include all customer and franchisee personal and business information that I obtain or have access to during my employment, as well as the confidential information of any other third parties to whom the Franchisor owes a duty of confidentiality. Further, any and all information, knowledge, know-how, and techniques which the Franchisor specifically designates as confidential shall be deemed to be Confidential Information for purposes of this Agreement.
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- In consideration for my access to the Confidential Information as part of my employment with Franchisee, and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, I hereby acknowledge and agree to the terms of this Confidentiality Agreement (the "Agreement").
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- As an employee of Franchisee, the Franchisor and/or Franchisee may disclose the Confidential Information to me via training programs, the Franchisor's Confidential Operations Manuals (the "Manuals"), or the development process during the term of my employment with the Franchisee.
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- I will not acquire any interest in the Confidential Information, other than the right to utilize it in performing my duties for Franchisee during the term of my employment and the use or duplication of the Confidential Information for any use outside the System would constitute an unfair method of competition. I covenant that I will not forward or provide the Confidential Information to any third party, nor store it on any personal or third-party electronic device, disk, drive, or otherwise, unless expressly authorized to do so by the Franchisor .
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Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the Confidential Information relating to the operation of the Closet Storage Concepts System includes several key elements. These include proprietary trade secrets, specifications, security protocols, computer hardware and systems, technology and equipment used, methods of business practices and management, research and development, training processes, operational manuals, presentation materials, vendor agreements, supplier lists, vendor lists, marketing and merchandising strategies, plans for new product or service offerings, and knowledge of, and experience in, the operation of the Franchised Business. This broad definition ensures that all critical aspects of the Closet Storage Concepts business model are protected.
This Confidential Information also extends to customer and franchisee personal and business information obtained during employment, as well as confidential information of third parties to whom Closet Storage Concepts owes a duty of confidentiality. Furthermore, any information, knowledge, know-how, and techniques specifically designated as confidential by Closet Storage Concepts are also included. Franchisees and their employees are required to maintain the confidentiality of this information, with spouses of franchisees also needing to sign a Confidentiality, Non-Disclosure, and Non-Competition Agreement.
The Franchise Agreement specifies that all data pertaining to the Franchised Business, including customer data, is owned exclusively by Closet Storage Concepts. Closet Storage Concepts has the right to use this data in any manner it deems appropriate without compensating the franchisee. Upon termination of the Franchise Agreement, the franchisee loses all rights to access or use this information. Franchisees are prohibited from contesting Closet Storage Concepts' ownership of trade secrets, proprietary software, copyrighted materials, methods, or procedures. Any developments used in connection with the Closet Storage Concepts System are considered part of the System and Closet Storage Concepts' Confidential Information, regardless of who developed them.