What ownership interest do I have in the items created for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
he Confidential Information, other than the right to utilize it in providing assistance for Franchisee during the term of the Franchise Agreement 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.
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- Any work performed by me during my spouse's affiliation 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.
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- 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts Franchise Disclosure Document, any work performed by you during your spouse's affiliation with the franchisee, in relation to Closet & Storage Concepts, and any derivative works created by you using the confidential or proprietary information of Closet Storage Concepts, are considered "works made for hire." This means you will not have any ownership interest in these created items.
Closet Storage Concepts retains exclusive ownership of all data pertaining to the franchised business. This includes any data created or collected by the franchisee related to the Closet Storage Concepts system or the operation of the franchised business, such as customer data. Closet Storage Concepts has the right to use this data in any manner they deem appropriate without compensating the franchisee. Upon termination of the franchise agreement, the franchisee loses all rights to access or use this information.
Furthermore, any development used by or in connection with the Closet Storage Concepts system is considered part of the system and Closet Storage Concepts' confidential information. This applies whether the development is created by Closet Storage Concepts, its affiliates, the franchisee, or any other present, former, or future Closet Storage Concepts franchisee or their employees. This reinforces that any improvements or creations related to the Closet Storage Concepts system become the property of the franchisor, ensuring uniformity and protecting the brand's intellectual property.