Can Closet Storage Concepts charge a fee for the annual conference?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may charge 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether Closet Storage Concepts can charge a specific fee for an annual conference. The document does outline various fees that a franchisee may be subject to, such as an initial franchise fee of $49,500 for the first franchise and $40,000 for subsequent franchises, as well as ongoing royalty fees based on gross revenue.
Additionally, Closet Storage Concepts franchisees are required to contribute to both a National Advertising Program (NAP) and local advertising, with specific spending requirements outlined in the FDD. The franchisor may also charge fees for software setup and for the use of email addresses/mailboxes. Franchisees may incur costs related to inspections of suppliers and testing of products if they propose a supplier not already approved by Closet Storage Concepts.
However, the FDD excerpts provided do not explicitly mention any fees associated with an annual conference. A prospective franchisee should inquire directly with the franchisor to determine if there are mandatory or optional annual conferences and if any fees are associated with attending.