Can the Closet Storage Concepts agreement be changed, modified, amended, or added to?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
hisor's proposal of a location does not constitute Franchisor's representation or guarantee that Franchisee shall succeed at the selected location, nor an expression of Franchisor's opinion regarding the viability of the location.
- 1.7 Acceptance of Relocation. If, within thirty (30) days after receipt of Franchisor's proposal of a new location, Franchisee gives to Franchisor written notice of acceptance of such proposal, and either enters into such tendered lease, sublease, or sale contract, or if none is tendered, agrees in writing to comply with any and all requirements prescribed by Franchisor relating to the lease of the Closet & Storage Concepts business premises and construction or alteration of improvements on the premises, then notwithstanding the termination right at Section 8.2.2 (r) of this Agreement, this Agreement shall continue for the remainder of the term and shall be deemed amended to refer to such new location. If Franchisee fails to comply with the provisions of this Section 1.7 within said thirty (30) day period, then Franchisor shall have the right to terminate this Agreement pursuant to Section 8.2.2 (r), and Franchisee shall have no further rights under or by virtue of Sections 1.6 through 1.7 of this Article.
- 1.8 Other Channels of Distribution. Franchisor and Franchisor's affiliates, reserve the unrestricted right to offer products and services, whether now existing or developed in the future, identified by the Proprietary Marks or other marks Franchisor and/or Franchisor's affiliates own or license, through any distribution method Franchisor or its affiliates may establish, and may franchise or license others to do so, both within and outside the Territory, regardless of whether the offering of products or services in the other channels of distribution compete with Franchisee's Closet & Storage Concepts business. These other channels of distribution may include locations and venues other than a Closet & Storage Concepts location, other retail establishments, mail order, catalogs, the Internet, and any similar outlets or distribution methods as Franchisor and/or its affiliates determine, in Franchisor's or its affiliate's sole discretion. This Agreement does not grant Franchisee any rights to distribute products through other channels of distribution as described in this Section 1.8, and Franchisee has no right to share, nor does Franchisee expect to share, in any of the proceeds Franchisor and/or Franchisor's affiliates or franchisees or licensees or any other party receives in connection with the alternate channels of distribution.
2. TERM AND RENEWAL
- 2.1 Term. This Agreement grants rights to Franchisee for a period of 10 years and is effective when signed by Franchisor.
- 2.1.1 Renewal Option.Subject to the provisions of this Article 2, Franchisee is hereby granted an option to extend this Agreement for one (1) successive ten (10) year period (hereinafter referred to as the "Renewal Period"). This option may be exercised by Franchisee by giving written notice of its election to renew the franchise not less than 6 months nor more than 12 months prior to the expiration of the current term.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts Franchise Disclosure Document, the franchise agreement can be amended under certain conditions. Specifically, if a franchisee accepts a new location proposed by Closet Storage Concepts within 30 days of receiving the proposal, the agreement is deemed amended to refer to the new location.
Additionally, Closet Storage Concepts retains the right to modify the standards and specifications applicable to the operation of the franchised business. These changes can include standards for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment. These modifications can be communicated through written notice or changes to the Operations Manual. Franchisees are responsible for implementing these changes at their own expense, as if they were part of the original agreement.
Furthermore, Closet Storage Concepts may increase or modify minimum insurance requirements with 30 days' prior written notice to the franchisee, who must then comply with these modifications. During the renewal process, Closet Storage Concepts can also require franchisees to repair, replace, or modernize equipment, signs, decor, and other items to reflect the current standards of the system. Therefore, while the core agreement exists for a defined term, Closet Storage Concepts retains considerable latitude to implement changes affecting franchisees' operations and financial obligations.