To whom must executed confidentiality agreements be forwarded for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
All employees must execute a Confidentiality Agreement in the form we require. Our current form of Confidentiality Agreement is attached as Exhibit 3 to the Franchise Agreement. Additionally, spouses of owners must execute the version entitled Confidentiality, Non Disclosure and Non-compete Agreement. All executed agreements must be forwarded to us to ensure compliance.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 41–43)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, all executed confidentiality agreements from employees and spouses of owners must be forwarded to Closet Storage Concepts to ensure compliance. This requirement is in place to protect the franchisor's confidential information and trade secrets.
Confidential information includes design specifications, methods, sales techniques, supplier information, operating results, training materials, customer data, and specifics regarding computer software. Closet Storage Concepts mandates these agreements to prevent unauthorized disclosure or use of this information, which could harm the franchise system. The franchisee does not acquire any interest in Closet Storage Concepts' confidential information, other than the right to utilize it in the operation of their franchised business during the term of the Franchise Agreement.
Requiring confidentiality agreements is a standard practice in franchising to safeguard proprietary information. By ensuring that all employees and spouses of owners sign and adhere to these agreements, Closet Storage Concepts aims to maintain the integrity and competitive advantage of its business model. Franchisees must ensure that these agreements are properly executed and submitted to Closet Storage Concepts to remain in compliance with the Franchise Agreement.