What is attached as Exhibit '5' to the Closet Storage Concepts Franchise Agreement?

According to the 2025 Closet Storage Concepts FDD, Exhibit "5" attached to the Franchise Agreement is the current form of release. This release is relevant when a franchisee exercises their renewal option. Specifically, before a Closet Storage Concepts franchisee can renew their agreement, they must execute a release of any and all claims against Closet Storage Concepts and its affiliates.

The release must adhere to the language and form chosen by Closet Storage Concepts, but it cannot release any liability specifically protected by any applicable state statute regulating franchising. This ensures that while franchisees waive certain claims upon renewal, their statutory rights under franchise laws are preserved.

This requirement is a fairly standard practice in franchising, as it aims to prevent future litigation based on past events. However, prospective Closet Storage Concepts franchisees should carefully review the release document with legal counsel to understand the full scope of the claims they are waiving and ensure compliance with state-specific franchise regulations.