What approvals are required from Closet Storage Concepts before a franchisee can open their business?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
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- Upon approval by us of the showroom site which you select, we will provide you with advice, guidance and general layout (but not construction) plans for the showroom. In constructing your showroom you must comply with all local building codes, ordinances and requirements and obtain all required building, health and sign permits and licenses. You pay all costs for construction or remodeling the showroom. (Franchise Agreement - Sections 4.1 and 4.2).
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance:
Pre-Opening Assistance
Before you open your Closet & Storage Concepts business, we will:
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- Assist you in negotiating a lease for the showroom site which you have selected. The lease is subject to our approval or disapproval which generally shall be given within 30 days after you submit a written copy of the lease to us. You should consult with an attorney who is experienced in reviewing leases for commercial locations. We do not anticipate owning the premises, although we reserve the right to do so. (Franchise Agreement – Section 1.3)
You must select an acceptable site within your Territory within 120 days after you sign the Franchise Agreement. Your site must be at least 3,000 square feet in area. We generally will approve or disapprove of the site within 60 days after we receive notice of and information about the location. If we have not yet designated an accepted location for the Franchised Business when the Franchise Agreement is signed then you are responsible for locating a site within a specified geographic site selection area (the "Search Area"). The Search Area is delineated for the sole purpose of site selection and does not provide any territorial exclusivity or protection.
You (or your Operating Principal if you are an entity) and your designated manager (if employed) must attend and successfully complete to our satisfaction the Closet & Storage Concepts training course. If we determine that you and/or your designated manager are unable to successfully complete the training course, we have the right to terminate the Franchise Agreement. (Franchise Agreement - Section 4.4).
If you fail to obtain a site for the showroom which is acceptable to us in the time period required, we may terminate the Franchise Agreement (Franchise Agreement - Section 1.3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, there are several approvals needed before a franchisee can open their business. The franchisee must first select a showroom site, which is subject to Closet Storage Concepts' approval. Closet Storage Concepts will provide advice, guidance, and general layout plans for the showroom, but the franchisee is responsible for complying with all local building codes, ordinances, and requirements, as well as obtaining all necessary permits and licenses. The franchisee is also responsible for all construction and remodeling costs.
Closet Storage Concepts also requires approval of the lease for the showroom site. The franchisor generally provides approval or disapproval within 60 days of receiving a written copy of the lease. The FDD recommends that franchisees consult with an attorney experienced in reviewing commercial leases. The site selected by the franchisee must be at least 3,000 square feet in area. Closet Storage Concepts will evaluate the site, considering factors such as lease obligations, population, demographic characteristics, traffic patterns, parking, neighborhood character, competing outlets, and proximity to other Closet Storage Concepts locations and other businesses.
Finally, the franchisee (or the Operating Principal, if the franchisee is an entity) and the designated manager (if employed) must attend and successfully complete the Closet Storage Concepts training course to the franchisor's satisfaction. Failure to complete the training course successfully may result in the termination of the Franchise Agreement. Closet Storage Concepts does not charge for training for up to the initial three people, but the franchisee must cover travel and living expenses for themselves and their employees. If the franchisee fails to obtain a site acceptable to Closet Storage Concepts within the required time period, Closet Storage Concepts may terminate the Franchise Agreement.