What is the employee acknowledging and agreeing to by signing the Closet Storage Concepts Confidentiality Agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
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.
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 .
Any work performed by me during my employment with Franchisee in relation to Closet & Storage Concepts or the Franchise Agreement and any derivative works created by me using the
Confidential Information or any proprietary information of the Franchisor are considered "works made for hire" and I will have no ownership interest in the items created.
The Confidential Information is proprietary, involves trade secrets of the Franchisor, and is disclosed to me solely on the condition that I agree, and I do hereby agree, that I shall hold in strict confidence all Confidential Information.
Unless the Franchisor otherwise agrees in writing, I will disclose and/or use the Confidential Information only in connection with my duties as an employee of Franchisee, and will continue not to disclose or use any such information even after I cease to be employed by Franchisee, unless I can demonstrate that such information has become generally known to the public or easily accessible other than by the breach of an obligation of Franchisee under the Franchise Agreement, a breach of the employees or associates of Franchisee, or a breach of my own duties or the duties hereunder.
I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
In the event any provision of this Agreement is ever deemed to exceed the limits permitted by any applicable law, the provisions set forth herein will be reformed to the extent necessary to make them reasonable and enforceable.
The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of the remaining provisions, all of which are severable and will be given full force and effect.
I understand and acknowledge that the Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without my consent, effective immediately upon receipt by me of written notice thereof; and I agree to comply forthwith with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts FDD, by signing the Confidentiality Agreement, the employee acknowledges and agrees to several key terms regarding the franchisor's confidential information. The employee acknowledges that Closet Storage Concepts has developed a unique system through significant investment and that the franchisor owns proprietary and confidential information related to this system. This information includes trade secrets, specifications, security protocols, computer systems, business methods, research and development, training processes, operational manuals, marketing strategies, and customer/franchisee data. The employee agrees to hold all such Confidential Information in strict confidence.
The agreement specifies that the employee's access to confidential information is in consideration for their employment. The employee's rights to the information are limited to utilizing it for their duties during their employment with the franchisee. Any use or duplication of the confidential information outside of the Closet Storage Concepts system is considered unfair competition. The employee also agrees not to forward or provide the confidential information to any third party or store it on personal devices unless expressly authorized by Closet Storage Concepts.
Furthermore, any work performed by the employee related to Closet Storage Concepts or the Franchise Agreement, including derivative works created using confidential or proprietary information, are considered "works made for hire." This means the employee will have no ownership interest in these items. The employee's obligations to maintain confidentiality continue even after their employment ends, unless the information becomes publicly known through no fault of their own. Closet Storage Concepts retains the right to modify the scope of any covenant in the agreement with written notice. Franchisees must also ensure their employees sign a confidentiality agreement, reinforcing the importance of protecting Closet Storage Concepts's proprietary information.