What is the required information for each principal owner of a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Spouses of Franchisees must sign the Confidentiality, Non-Disclosure and Non-Competition Agreement in the form attached as Exhibit "3(b)".
- 6.4.4 Employees. Franchisee shall require its 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 to execute a confidentiality agreement containing provisions similar to those set forth in this Agreement.
Our current form of confidentiality agreement is attached to this Agreement as Exhibit "3(a) and 3(b)".
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts FDD, principal owners, along with officers, directors, employees who receive initial training, and immediate family members, must sign a confidentiality agreement. This agreement contains provisions similar to those outlined in the franchise agreement itself. The current form of the confidentiality agreement is included as Exhibit "3(a) and 3(b)" in the FDD.
This requirement ensures that sensitive business information and trade secrets of Closet Storage Concepts are protected. By signing the confidentiality agreement, principal owners legally agree not to disclose or misuse any confidential information related to the Closet Storage Concepts system. This is a standard practice in franchising to maintain the integrity and competitive advantage of the brand.
Prospective franchisees should carefully review Exhibits 3(a) and 3(b) to understand the specific terms and obligations of the confidentiality agreement. Franchisees should also ensure that all relevant individuals associated with their franchise operation are aware of and comply with this requirement. Franchisees should also note that spouses of franchisees must also sign a Confidentiality, Non-Disclosure and Non-Competition Agreement in the form attached as Exhibit "3(b)".