Can Closet Storage Concepts ask its suppliers to contribute to the NAP?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
All franchisees will be required to contribute on the same basis. Our suppliers may be asked to contribute to the NAP on terms we negotiate. Neither we nor our affiliates have a contractual obligation to contribute to the NAP. We have the sole right to determine contributions and expenditures from the NAP, or any other advertising program, and sole authority to determine the selection of the advertising materials and programs. We are not required, under the Franchise Agreement, to spend any amount of NAP contributions in your Territory and not all System franchisees will benefit directly or on a pro rata basis from these expenditures. (Section 3.5 of the Franchise Agreement). NAP contributions may be used at our discretion for the following: the development, production and distribution of national and/or local advertising; the creation of advertising materials and public relations which, in our sole judgment, promote the products and services offered by System businesses including development and production of advertising and marketing programs and materials; purchase of media, field marketing programs and activities; promotions, new product research and development, quality control, mystery shopper programs which may include call recording; market research; talent fees; working with public relations firms; website and social media development and maintenance; creating or maintaining a presence in virtual worlds, and for administrative, travel, debt service and operating costs and overhead.
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, Closet Storage Concepts may ask its suppliers to contribute to the National Advertising Program (NAP). The FDD states that Closet Storage Concepts' suppliers may be asked to contribute to the NAP on terms that Closet Storage Concepts negotiates.
Closet Storage Concepts retains sole authority to determine the selection of advertising materials and programs, as well as contributions and expenditures from the NAP. Franchisees are required to contribute on the same basis, but neither Closet Storage Concepts nor its affiliates have a contractual obligation to contribute to the NAP.
These NAP contributions may be used at Closet Storage Concepts' discretion for various purposes, including the development, production, and distribution of advertising, creation of advertising materials and public relations, purchase of media, field marketing programs, promotions, new product research and development, quality control, market research, website and social media development and maintenance, and for administrative, travel, debt service, and operating costs and overhead.