Is Closet Storage Concepts or its affiliates permitted to be the sole supplier of certain items?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, Closet Storage Concepts reserves the right to designate itself or its affiliates as the sole supplier for specific items. Currently, Closet Storage Concepts is the only supplier of CAD Design Software Keys and CRM software.

This requirement means that franchisees must purchase these specified items directly from Closet Storage Concepts, limiting their ability to shop around for potentially lower prices or alternative suppliers. While this ensures consistency and quality control within the Closet Storage Concepts system, it also reduces the franchisee's autonomy in sourcing products.

The FDD also states that franchisees are obligated to purchase wood, brass, plastic, multiple and special hangers, shoe racks, tie & belt racks, garment racks, storage closets and other storage systems, specialty items and closet rods, lumber and particle board (melamine laminated), rod covers, rod cups, pole covers, BIZTRAX software, CAD Design Software Keys and hardware and any other closet or storage system related accessories, hardware and fixtures from Closet Storage Concepts, its affiliate, or an approved supplier. Closet Storage Concepts' affiliate, MSP Manufacturing, is an approved supplier for cabinet components, murphy bed frames, hardware & accessories, mattresses, closet systems components, and decorative doors and drawer fronts.

Prospective franchisees should carefully consider the implications of these required purchases and the potential impact on their operating costs and profit margins. It is important to inquire about the pricing structure for these mandatory items and compare them to market rates to assess the financial impact of this restriction.