Does Closet Storage Concepts specify what constitutes confidential information?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Any and all information, knowledge, know-how, techniques and data which we designate as confidential will be deemed confidential for purposes of your Franchise Agreement. Examples of confidential information include, without limitation: (1) design specifications; (2) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques; (3) knowledge of specifications for and suppliers of, and methods of ordering, certain products, materials, equipment and supplies; (4) knowledge of the operating results and financial performance of us or our franchisees; (5) the Operations Manual; (6) training materials and programs; (7) customer data; (8) all password-protected portions of our website, intranets and extranets and the information they contain (including the email addresses of our franchisees); and (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, the franchise agreement specifies what is considered confidential information. Closet Storage Concepts designates any information, knowledge, know-how, techniques, and data as confidential. This broad definition means that franchisees must be careful about how they handle and share information related to the Closet Storage Concepts business.
The FDD provides examples of confidential information, including design specifications, methods, formats, sales and marketing techniques, knowledge of suppliers, operating results, the Operations Manual, training materials, customer data, password-protected website content, and specifics of computer software used in the Closet Storage Concepts system. This list is not exhaustive, as Closet Storage Concepts retains the right to designate other information as confidential as well. Franchisees must also ensure they have security measures to protect customer data.
Closet Storage Concepts also states that all data collected from customers or through marketing is exclusively owned by them and/or their affiliates. Franchisees are only allowed to use this data in connection with their franchised business while the agreement is in effect. This means that upon termination or transfer of the franchise, the franchisee loses the right to use this customer data, which could impact the business's value and the franchisee's ability to maintain customer relationships independently. All new products, items, services and other developments will be deemed works made for hire and Closet Storage Concepts will own all rights in them.