In the Closet Storage Concepts franchise agreement, what does 'immediate family' refer to?

According to the 2025 Closet Storage Concepts Franchise Disclosure Document, the franchise agreement stipulates that certain individuals, including members of the franchisee's immediate family, must adhere to confidentiality obligations. Specifically, officers, directors, equity owners, employees (to the extent the employee has received Franchisor's initial training) and members of the immediate family of Franchisee, its officers, directors and equity owners are required to execute a confidentiality agreement. This agreement contains provisions similar to those outlined in the franchise agreement itself.

This requirement ensures that sensitive business information and trade secrets of Closet Storage Concepts are protected not only by the franchisee but also by those closely associated with them. The confidentiality agreement aims to prevent unauthorized disclosure or use of confidential information that could harm the Closet Storage Concepts system.

Prospective franchisees should carefully review the confidentiality agreement (Exhibit "3(a) and 3(b)") and ensure that all relevant family members are willing to comply with its terms. Failure to secure these agreements could potentially lead to breaches of contract and legal repercussions for the franchisee. It is a common practice in franchising to include immediate family members in confidentiality agreements, given their potential access to sensitive business information.