Who bears the cost of changes to the Proprietary Marks for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
5.10 Changes to the System. Franchisor may, from time to time, change the standards and specifications applicable to operation of the Franchised Business, including standards and specifications for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology and equipment, by written notice to Franchisee or through changes in the Operations Manual. Franchisor also may from time to time eliminate and introduce products or services or change the products or services. Franchisee shall cease offering products and services discontinued by Franchisor immediately, and immediately revise any changed products or services. Franchisee shall commence offering and selling any new products and services within 15 days of notification from Franchisor. Franchisee may incur an increased cost to comply with such changes, and Franchisee shall accept and implement such changes at its own expense as if they were part of the Closet & Storage Concepts System when this Agreement was executed, including discontinuing or modifying the use of or substituting any of the Proprietary Marks or computer software.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the franchisee is responsible for the costs associated with changes to the Closet Storage Concepts System, which includes the Proprietary Marks. Specifically, the franchise agreement states that Closet Storage Concepts may modify the standards and specifications applicable to the operation of the franchised business. These changes can include standards and specifications for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment.
The Closet Storage Concepts franchisee must implement these changes at their own expense as if they were part of the Closet Storage Concepts System when the agreement was executed. This includes discontinuing, modifying, or substituting any of the Proprietary Marks or computer software. The franchisee is expected to accept and implement such changes, even if it leads to increased costs.
This means that if Closet Storage Concepts decides to update its logos, signage, or other branded materials, the franchisee will bear the financial burden of updating their business to comply with these changes. This could involve replacing signs, updating marketing materials, or making changes to the physical appearance of the store. Prospective franchisees should consider these potential costs when evaluating the Closet Storage Concepts franchise opportunity.