Can a Closet Storage Concepts franchisee sublicense or distribute the Proprietary Computer Software?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
5.14.2 During the Term of this Agreement, Franchisee is authorized to access and use the Computer Program and any other proprietary computer software Franchisor designates for Franchisee's use in the Operations Manual or otherwise (the "Proprietary Computer Software"), solely at the Franchised Business, and in accordance with the Operations Manual. Franchisee shall not sublicense or distribute the Proprietary Computer Software, whether for profit or otherwise, or authorize any other individual or entity to use the Proprietary Computer Software without Franchisor's express written consent. Franchisee shall not use the Proprietary Computer Software or allow it to be used, directly or indirectly, to: (i) engage in unlawful conduct, (ii) infringe any proprietary rights, whether protected by copyright, trademark, trade secret, or otherwise, (iii) defame, threaten, or otherwise violate the rights of others, (iv) publish any inappropriate, profane, obscene, indecent, or unlawful material or information, (v) engage in commercial conduct other than with regard to the Franchised Business, (vi) attempt to decipher, decompile, disassemble
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from sublicensing or distributing the Proprietary Computer Software. The FDD states that franchisees are authorized to access and use the software solely for their franchised business operations, and in accordance with the operations manual.
This restriction means a Closet Storage Concepts franchisee cannot provide the software to any other individual or entity, whether for profit or without charge, without the express written consent of Closet Storage Concepts. This protects the franchisor's intellectual property and ensures consistent system-wide usage of the software.
Furthermore, the franchisee is prohibited from using the Proprietary Computer Software for unlawful conduct, infringing proprietary rights, defaming others, or publishing inappropriate material. They also cannot use it for commercial conduct outside of their Closet Storage Concepts franchise. This clause underscores the importance of adhering to the franchisor's guidelines and using the software only for its intended purpose within the franchise system.