Who is bound by the franchisee's obligations under the Closet Storage Concepts agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
CLOSET & STORAGE CONCEPTS FRANCHISE AGREEMENT
THIS AGREEMENT is entered into and made by and between CLOSETS UNLIMITED OF NEW JERSEY, INC., a New Jersey corporation with its principal business address at 436 Commerce Lane, Suite D, West Berlin, "Effective Date"). NJ 08091 ("Franchisor") and ("Franchisee") on the date this Agreement is executed by Franchisor below (the with a principal address at
BACKGROUND
C. Franchisor is engaged in the business of granting franchises to qualified individuals and business entities to use the System to operate Closet & Storage Concepts franchises.
D. Franchisee has applied to Franchisor for a franchise to operate a Closet & Storage Concepts business using the System and Proprietary Marks and to receive the training, confidential information and other assistance Franchisor provides.
Franchisor has approved Franchisee's application in reliance upon all of the representations made in the application.
- E. By executing this Agreement, Franchisee acknowledges the importance of Franchisor's quality and service standards and agrees to operate Franchisee's business in accordance with those standards and as described in the Operations Manual.
Franchisee also acknowledges that adhering to the terms of this Agreement and implementing the System as Franchisor directs are essential to the operation of Franchisee's business, to the System and to all Franchisor's franchisees.
In consideration of the mutual promises and commitments contained in this Agreement, together with other valuable consideration, the receipt and sufficiency of which is acknowledged, Franchisor and Franchisee agree as follows:
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts Franchise Disclosure Document, the franchise agreement is made between Closets Unlimited of New Jersey, Inc. as the Franchisor, and the individual or business entity identified as the "Franchisee." The agreement specifies that the franchisee is the party that has applied for and been granted the franchise to operate a Closet & Storage Concepts business.
By signing the agreement, the franchisee acknowledges the importance of Closet Storage Concepts's quality and service standards and commits to operating their business according to those standards, as detailed in the operations manual. The franchisee also understands that adhering to the agreement's terms and implementing the Closet Storage Concepts system as directed by the franchisor is crucial for the success of their individual business, the overall system, and all other franchisees within the Closet Storage Concepts network.
In essence, the franchisee is the party legally bound to fulfill all obligations, duties, and responsibilities outlined in the franchise agreement. This includes operating the business according to Closet Storage Concepts's standards, maintaining necessary working capital, purchasing approved products and services from approved suppliers, and upholding ethical and sound business practices to enhance the Closet Storage Concepts brand.