Does Closet Storage Concepts warrant that access to the Proprietary Computer Software will be uninterrupted?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
5.14.2 During the Term of this Agreement, Franchisee is authorized to access and use the Computer Program and any other proprietary computer software Franchisor designates for Franchisee's use in the Operations Manual or otherwise (the "Proprietary Computer Software"), solely at the Franchised Business, and in accordance with the Operations Manual. Franchisee shall not sublicense or distribute the Proprietary Computer Software, whether for profit or otherwise, or authorize any other individual or entity to use the Proprietary Computer Software without Franchisor's express written consent. Franchisee shall not use the Proprietary Computer Software or allow it to be used, directly or indirectly, to: (i) engage in unlawful conduct, (ii) infringe any proprietary rights, whether protected by copyright, trademark, trade secret, or otherwise, (iii) defame, threaten, or otherwise violate the rights of others, (iv) publish any inappropriate, profane, obscene, indecent, or unlawful material or information, (v) engage in commercial conduct other than with regard to the Franchised Business, (vi) attempt to decipher, decompile, disassemble
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the document does not explicitly state whether access to the Proprietary Computer Software will be uninterrupted. However, the FDD does state that during the term of the agreement, the franchisee is authorized to access and use the Computer Program and any other proprietary computer software that Closet Storage Concepts designates for the franchisee's use in the Operations Manual or otherwise. This access is solely for the franchised business and must be in accordance with the Operations Manual.
Closet Storage Concepts requires franchisees to implement the Computer Program into their franchised business and comply with all specifications and standards prescribed regarding the Computer Program, as provided from time to time in the Operations Manual. Franchisees must also utilize the Computer Program and input the required data. Prior to commencing business, franchisees must purchase or lease acceptable computer hardware and software with Internet access and e-mail capability to access Closet Storage Concepts' website and utilize the Computer Program.
Given the importance of the software to the Closet Storage Concepts franchise operations, it is reasonable to assume that Closet Storage Concepts would aim to provide reliable access. However, the absence of an explicit guarantee means that interruptions could occur. A prospective franchisee should directly ask Closet Storage Concepts about the typical frequency and duration of any planned or unplanned outages, as well as what support is provided if the software becomes unavailable.
In the absence of an explicit warranty, a franchisee bears the risk of potential business disruptions if the software is unavailable. Clarification from Closet Storage Concepts regarding their uptime guarantees, service level agreements, and support procedures would be essential for a prospective franchisee to fully understand this aspect of the franchise.