Are affiliate-owned locations obligated to participate in Closet Storage Concepts advertising cooperatives?

According to Closet Storage Concepts's 2025 Franchise Disclosure Document, affiliate-owned locations are not required to participate in any advertising cooperatives that Closet Storage Concepts may establish. However, Closet Storage Concepts retains the right to institute such a requirement for franchisees in the future.

If an advertising cooperative is formed, Closet Storage Concepts has the authority to draft funds from a franchisee's bank account for the advertising cooperative contribution and then pass those funds on to the cooperative. The cooperative members themselves are responsible for administering their advertising cooperative, following bylaws approved by Closet Storage Concepts. These bylaws and governing agreements are available for review by the cooperative's franchisee members.

Closet Storage Concepts may require the cooperative to prepare annual or periodic financial statements for review and each cooperative will maintain its own funds, but Closet Storage Concepts retains the right to review the cooperative's finances. It is important to note that individual franchised businesses may not directly or proportionately benefit from their contributions to the cooperative. Closet Storage Concepts also reserves the right to approve all of a cooperative's marketing programs and advertising materials and can terminate or suspend a cooperative's program or operations with 30 days' written notice to affected franchisees, and may form, change, dissolve, or merge any advertising cooperative.