What was the amount of contract receivables for Closet Storage Concepts as of December 31, 2024?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
from franchise royalties and advertising contributions from franchisees.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Note Receivable
The Company entered into a note receivable with a franchisee for unpaid franchise royalties, in the amount of $26,703. The balance as of December 31, 2024 was $26,703. Payments on this note commenced in April 2025, and are due in bi‐weekly variab
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the company, Closets Unlimited of New Jersey, Inc., had a note receivable with a franchisee for unpaid franchise royalties amounting to $26,703 as of December 31, 2024.
The note receivable originated from unpaid franchise royalties. Payments on this note began in April 2025 and are structured as bi-weekly variable installments ranging from approximately $250 to $700, scheduled to continue through June 2026. The agreement specifies that no interest is charged on this particular note.
For a prospective Closet Storage Concepts franchisee, this indicates that the franchisor does offer financing options to franchisees. It also highlights the importance of understanding the terms and conditions under which such financing is extended, including repayment schedules and interest charges. Additionally, it provides insight into how the franchisor manages financial relationships with its franchisees, particularly in cases of outstanding payments.