Does the Closet Storage Concepts agreement bind my heirs and personal representatives?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 Death or Disability. In the event of the death, disability or incapacity of any individual Franchisee or officer or director or member of an incorporated Franchisee or limited liability company or partner of a partnership Franchisee, should the decedent's or disabled or incapacitated person's executor, heir or legal representative, or the business entity, as the case may be, wish to continue as Franchisee under this Agreement, such person shall apply for Franchisor's consent, execute the then-current franchise agreement, and complete the training program to Franchisor's satisfaction, as applicable, as in any other case of a proposed transfer of Franchisee's interest in this Agreement. Such assignment by operation of law shall not be deemed in violation of this Agreement, provided the heirs or legatees or business entity meet the conditions imposed by this Agreement and are acceptable to Franchisor.
If Franchisee is a business entity, this Agreement shall continue in effect upon the death of the largest equity owner, provided that the active management of the business entity shall remain stable and reasonably satisfactory to Franchisor in its sole discretion.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the franchise agreement addresses the possibility of death or disability of the franchisee. Specifically, if the franchisee dies or becomes disabled, their executor, heir, or legal representative can apply to continue the franchise agreement. However, they must meet certain conditions to be approved.
To continue the Closet Storage Concepts franchise, the executor, heir, or legal representative must apply for the Franchisor's consent, execute the then-current franchise agreement, and complete the training program to the Franchisor's satisfaction. This ensures that the new operator is qualified and committed to maintaining the standards of the Closet Storage Concepts system. The franchisor retains the right to assess the suitability of the proposed successor.
This provision protects both the franchisee's family and the Closet Storage Concepts brand. It allows for a smooth transition of ownership while ensuring that the franchise continues to operate according to the franchisor's standards. The requirement for the heir or legal representative to execute the current franchise agreement and complete training ensures that they are fully aware of their obligations and are equipped to manage the business effectively.
However, if the franchisee is a business entity, the agreement continues if the largest equity owner dies, provided that the active management of the business remains stable and satisfactory to Closet Storage Concepts. This offers some flexibility for business entities while still protecting the franchisor's interests.