Who must approve a written agreement to modify the Closet Storage Concepts agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
Based on the 2025 Closet Storage Concepts Franchise Disclosure Document, if a franchisee proposes a new location, and within 30 days of receiving the franchisor's proposal the franchisee provides written notice of acceptance, the franchise agreement will be amended to reflect the new location. This is contingent on the franchisee entering into the lease, sublease, or sale contract tendered by Closet Storage Concepts. If no such contract is tendered, the franchisee must agree in writing to comply with all requirements prescribed by Closet Storage Concepts relating to the lease of the business premises and any construction or alterations to the premises.
If the franchisee fails to meet these requirements within the 30-day period, Closet Storage Concepts has the right to terminate the agreement. This means that any changes to the franchise agreement regarding location are subject to the franchisor's approval and adherence to their specific requirements.
This clause protects Closet Storage Concepts by ensuring that any relocation or modification of the franchise agreement related to the location is under their control and meets their standards. It also ensures the franchisee is committed to the new location by requiring them to enter into a lease or comply with the franchisor's requirements for the premises. Prospective franchisees should carefully consider these conditions and the potential for termination if they fail to comply with the franchisor's requirements when considering a relocation.