Who bears the expense of implementing changes to the Closet Storage Concepts system?
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' 2025 Franchise Disclosure Document, the franchisee is responsible for bearing the expenses associated with implementing changes to the Closet & Storage Concepts System. Closet Storage Concepts retains the right to modify the standards and specifications for the operation of the franchised business, including but not limited to products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment. These changes will be communicated to the franchisee either through written notice or updates to the Operations Manual.
The franchisee is obligated to accept and implement these changes at their own expense, as if the changes were already part of the Closet & Storage Concepts System when the franchise agreement was initially executed. This includes discontinuing or modifying the use of any proprietary marks or computer software as directed by Closet Storage Concepts. Furthermore, the franchisee is expected to start offering and selling any new products and services within 15 days of receiving notification from Closet Storage Concepts.
This requirement extends to various aspects of the business, including the procurement of new equipment, vehicles, software, décor, fixtures, and supplies if Closet Storage Concepts determines that these are necessary due to changes in the services or merchandise offered. Additionally, during the renewal option, the franchisee is responsible for repairing or replacing equipment, signs, decor items, and furnishings to meet the current standards of the Closet & Storage Concepts system. This ensures that all Closet Storage Concepts franchises maintain a consistent brand image and operational standard, but at the franchisee's financial responsibility.