Who owns the data collected from customers of the Closet Storage Concepts Franchised Business?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
(9) specifics regarding the inner workings of computer software, applications or other technology used by our System.
All data that you collect from customers of the Franchised Business or through marketing is deemed to be owned exclusively by us and/or our affiliates. You must install and maintain security measures and devices necessary to protect the customer data from unauthorized access or disclosure, and you may not sell or disclose to anyone else any personal or aggregated information concerning any customers. You have the right to use the customer data only in connection with your Franchised Business, while the Franchise Agreement is in effect. If you transfer the Franchised Business to a new owner, who will continue to operate it under an agreement with us, you may transfer the customer data to the new owner as part of the going concern value of the business.
All new products, items, services and other developments, whether they be of our original design or variations of existing services or techniques or your or your employee's original design
or variations of existing services or techniques, will be deemed works made for hire and we will own all rights in them. If they do not qualify as works made for hire, you will assign ownership to us under the Franchise Agreement. You will not receive any payment or adjustment in connection with any new products, items, services or developments.
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 data collected from customers of the Franchised Business or through marketing is exclusively owned by Closet Storage Concepts and/or its affiliates. This includes business records with respect to customers, such as databases (in print, electronic, or other form), names, addresses, telephone numbers, e-mail addresses, customer purchase records, and all other similar records that the franchisee creates and maintains in connection with the operation of their Franchised Business.
As a Closet Storage Concepts franchisee, you are required to install and maintain security measures to protect customer data from unauthorized access or disclosure. You are permitted to use the customer data only in connection with your Franchised Business while the Franchise Agreement is in effect. You cannot sell or disclose any personal or aggregated customer information to anyone else.
Closet Storage Concepts retains the right to access these business records at all times, both during and after the termination or expiration of the franchise agreement. They may utilize, transfer, or analyze these records as they see fit, at their sole discretion, in the best interest of the Closet Storage Concepts system. If you transfer your Franchised Business to a new owner who continues to operate under an agreement with Closet Storage Concepts, you may transfer the customer data to the new owner as part of the business's going concern value.