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

According to the 2025 Closet Storage Concepts FDD, affiliate-owned locations do not have to participate in advertising cooperatives. However, Closet Storage Concepts reserves the right to establish advertising cooperatives within geographically defined local or regional marketing areas. If a cooperative is established in the area where a franchisee's business is located, the franchisee must participate and adhere to the cooperative's rules and procedures, which Closet Storage Concepts must approve.

Franchisees will contribute an amount determined by the cooperative, and Closet Storage Concepts has the right to draft funds from the franchisee's bank account for this purpose. The cooperative members are responsible for administering their respective advertising cooperative, as outlined in the by-laws approved by Closet Storage Concepts. These by-laws and governing agreements will be available for review by the cooperative's franchisee members.

Closet Storage Concepts may require a cooperative to prepare annual or periodic financial statements for their review and reserves the right to review the cooperative's finances. A franchisee's business may not directly or proportionately benefit from its contribution to the cooperative. Closet Storage Concepts retains the right to approve all of a cooperative's marketing programs and advertising materials and may terminate or suspend a cooperative's program or operations with 30 days' written notice to affected franchisees. Closet Storage Concepts also reserves the right to form, change, dissolve, or merge any advertising cooperative.