What is the condition for the Closet Storage Concepts franchisee to purchase the Approved Location?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee will purchase the Approved Location for the Franchised Business, Franchisee shall submit a copy of the proposed contract of sale to Franchisor for its written approval prior to its execution and shall furnish to Franchisor a copy of the executed contract of sale within ten (10) days after execution.
In the event of such purchase, Franchisee shall grant Franchisor the option to acquire the Approved Location in the event of any default by Franchisee under this Agreement or under any mortgage relating to the Approved Location.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, if a franchisee intends to purchase the Approved Location for their Franchised Business, they must first submit a copy of the proposed contract of sale to Closet Storage Concepts for written approval before executing the contract. Following execution, the franchisee must furnish Closet Storage Concepts with a copy of the executed contract of sale within ten days.
Additionally, the franchisee is required to grant Closet Storage Concepts the option to acquire the Approved Location in the event of any default by the franchisee under the Franchise Agreement or any mortgage related to the Approved Location. This provision ensures that Closet Storage Concepts has a mechanism to protect its brand and system standards, even if the franchisee faces financial difficulties or fails to comply with the agreement.
These conditions are in place to allow Closet Storage Concepts to maintain control over the location of its franchises and to protect its interests in the event of franchisee default. Prospective franchisees should carefully review these requirements and consider the implications before deciding to purchase the Approved Location.