Can Closet Storage Concepts change standards or specifications applicable to the franchised business?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
ge its then-current fee for use of e-mail addresses/mailboxes.
- 5.9 Inspection. During normal business hours and without prior notice, Franchisor or its
representatives or agents shall have the right to inspect Franchisee's records, interview Franchisee's customers and observe the manner in which Franchisee operates the Franchised Business.
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.
5.11 Authorized Services, Products, Supplies and Equipment.
- 5.11.1 Franchisee shall offer and sell all services, merchandise and products that Franchisor prescribes and only those services, merchandise and products that Franchisor prescribes. Franchisee shall order the products from any manufacturer, supplier or other Closet and Storage Concepts franchisee recommended by or approved by Franchisor in writing. Franchisee shall comply with all rules and regulations prescribed by federal, state and local agencies. Subject to the requirements of Section 5.2, Franchisee shall have the right to suggest new products, services or other developments to Franchisor for use in Franchisee's and other Closet & Storage Concepts System businesses. Franchisee shall have no right to offer new products or services to the Franchised Business customers or use any new developments until Franchisor has had the opportunity to test the new services or developments and provide Franchisee written approval for their use and standards and specifications with respect to their use.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, Closet Storage Concepts has the authority to modify the standards and specifications for operating a franchised business. These changes can encompass various aspects, including products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment. Closet Storage Concepts will communicate these changes to franchisees through written notice or updates to the Operations Manual. Furthermore, Closet Storage Concepts can eliminate or introduce new products or services as it deems necessary.
As a Closet Storage Concepts franchisee, you are obligated to implement these changes at your own expense, as if they were part of the original agreement. This includes discontinuing or modifying the use of proprietary marks or computer software as directed by Closet Storage Concepts. You must also start offering and selling any new products and services within 15 days of receiving notification from Closet Storage Concepts.
Closet Storage Concepts also has the exclusive right to modify the products, services, and merchandise offered by the franchised business. While franchisees can suggest new products, services, or developments, they cannot offer them to customers until Closet Storage Concepts has tested and provided written approval, including standards and specifications for their use. Franchisees must use only the methods, procedures, services, supplies, equipment, vehicles, and computer software specified by Closet Storage Concepts, which may be changed periodically, and franchisees are obligated to conform to these changes.