Can Closet Storage Concepts obtain revenue information from a franchisee remotely?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, all data created or collected by the franchisee in connection with the Closet & Storage Concepts system, or in connection with the operation of the franchised business, is owned exclusively by Closet Storage Concepts. This includes, without limitation, data pertaining to or otherwise concerning customers. Closet Storage Concepts has the right to use such data in any manner that it deems appropriate without compensation to the franchisee.

This means that Closet Storage Concepts can collect and use all data related to the franchised business, including customer information and sales data. The FDD specifies that Closet Storage Concepts can use this data to communicate directly with the customers of the franchised business and to provide updates, information, newsletters, and special offers to customers. Upon termination of the Franchise Agreement, the franchisee loses all rights to access or use any of this information.

For a prospective franchisee, this clause emphasizes the importance of understanding that all business-related data generated through the Closet & Storage Concepts system belongs to the franchisor. While the franchisee operates the business, they must provide all collected data to Closet Storage Concepts, which can then use it for its own purposes, including direct communication with the franchisee's customers. This is a fairly standard practice in franchising, allowing the franchisor to maintain brand consistency and manage customer relationships across the entire system. However, franchisees should be aware that they do not own the data they collect and must relinquish access to it upon termination of the agreement.