What constitutes a 'Competing Business' in relation to Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
6.4.1 During the Term of This Agreement. During the term of this Agreement, neither Franchisee, nor its equity owners shall, directly or indirectly, for itself or through, on behalf of, or in conjunction with any other person, partnership or corporation own, maintain, engage in, be employed by, or have any interest in any other business which offers or sells products or services competitive with those sold or offered under the Closet & Storage Concepts System or the More Space Place System (a "Competing Business").
During the term of this Agreement, regardless of the cause, neither Franchisee, nor its equity owners shall, directly or indirectly, for itself or through, on behalf of, or in conjunction with any other person, partnership or corporation own, maintain, engage in, be employed by, or have any interest in any company which grants franchises or licenses for any business competing in whole or in part with Franchisor.
6.4.2 After the Term of This Agreement. For a period of 2 years after the expiration, nonrenewal, transfer or termination of this Agreement, regardless of the cause, neither Franchisee, nor its equity owners shall, directly or indirectly, for itself or through, on behalf of, or in conjunction with any other person, partnership or corporation own, maintain, engage in, be employed by, or have any interest in any other Competing Business within the Territory or a radius of 20 miles from the Territory or any other Closet & Storage Concepts or More Space Place company owned or franchised business in operation or for which a franchise agreement has been signed, as of the date of expiration and nonrenewal, transfer or termination of this Agreement; provided, however, Franchisee may continue to operate any other Closet & Storage Concepts or More Space Place franchises for which Franchisee and Franchisor have a current franchise agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts FDD, a 'Competing Business' is defined in the franchise agreement in relation to noncompetition clauses. During the term of the agreement, franchisees and their equity owners are prohibited from owning, maintaining, engaging in, being employed by, or having any interest in any other business that offers or sells products or services competitive with those sold or offered under the Closet & Storage Concepts System or the More Space Place System. This restriction applies directly or indirectly, whether for themselves or in conjunction with any other person, partnership, or corporation.
This definition also extends to companies that grant franchises or licenses for any business that competes in whole or in part with Closet Storage Concepts. This means franchisees cannot be involved with other franchising systems that offer similar services.
After the franchise agreement expires, is not renewed, is transferred, or is terminated, the noncompetition restriction continues for a period of two years. During this period, franchisees and their equity owners are restricted from engaging in any Competing Business within their former territory or within a 20-mile radius of that territory. The restriction also applies to any other Closet & Storage Concepts or More Space Place company-owned or franchised business in operation or for which a franchise agreement has been signed as of the date of expiration, nonrenewal, transfer, or termination. However, franchisees may continue to operate any other Closet & Storage Concepts or More Space Place franchises for which they have a current franchise agreement with the franchisor.