Can I assign my rights or delegate my duties under the Closet Storage Concepts agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's rights under this Agreement are personal, and if Franchisee is an individual, Franchisee shall not change, sell, transfer, assign or encumber his/her/their percentage of ownership interest in this Agreement or the Franchised Business, without the prior written consent of Franchisor. Any unauthorized transfer by Franchisee shall constitute a material breach of the Agreement and shall be voidable by Franchisor. If Franchisee is an entity, Section 7.3 shall govern.
- 7.2 Death or Disability. In the event of the death, disability or incapacity of any individual Franchisee or officer or director or member of an incorporated Franchisee or limited liability company or partner of a partnership Franchisee, should the decedent's or disabled or incapacitated person's executor, heir or legal representative, or the business entity, as the case may be, wish to continue as Franchisee under this Agreement, such person shall apply for Franchisor's consent, execute the then-current franchise agreement, and complete the training program to Franchisor's satisfaction, as applicable, as in any other case of a proposed transfer of Franchisee's interest in this Agreement. Such assignment by operation of law shall not be deemed in violation of this Agreement, provided the heirs or legatees or business entity meet the conditions imposed by this Agreement and are acceptable to Franchisor.
If Franchisee is a business entity, this Agreement shall continue in effect upon the death of the largest equity owner, provided that the active management of
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, a franchisee's rights under the Franchise Agreement are personal. If the franchisee is an individual, they cannot sell, transfer, assign, or encumber their ownership interest in the agreement or the franchised business without obtaining prior written consent from Closet Storage Concepts. Any unauthorized transfer by the franchisee constitutes a material breach of the agreement and is voidable by Closet Storage Concepts.
In the event of the death, disability, or incapacity of an individual franchisee, or an officer, director, or member of a business entity franchisee, their executor, heir, or legal representative may apply for Closet Storage Concepts's consent to continue as the franchisee. They would need to execute the then-current franchise agreement and complete the training program to Closet Storage Concepts's satisfaction. Such an assignment by operation of law is not considered a violation of the agreement, provided the heirs, legatees, or business entity meet the conditions imposed by the agreement and are acceptable to Closet Storage Concepts.
If the franchisee is a business entity, the agreement remains in effect upon the death of the largest equity owner, provided that the active management of the Closet Storage Concepts business is assumed by a person satisfactory to Closet Storage Concepts. This person must also execute a written agreement assuming all of the obligations of the franchisee, within sixty days of the equity owner's death.