What criteria must the site for a Closet Storage Concepts Franchised Business meet for approval?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit and we must approve the site for the location of your Franchised Business. The site must meet our criteria for demographic characteristics, traffic patterns, parking, character of neighborhood, competition from and proximity to other businesses and More Space Place or Closet & Storage Concepts locations, the nature of other businesses in proximity to the site and other commercial characteristics and the size, appearance and other physical characteristics of the proposed site. Any site selection assistance provided by us, does not relieve you of the primary responsibility to locate an acceptable site, as required.
The lease or sublease for the premises of your Franchised Business must be approved by us before it is signed. We will not unreasonably or untimely withhold approval but can do so if the general business terms do not meet our standards. You must deliver a copy of the signed lease to us within 15 days after its execution. Our approval of the lease indicates only that we believe that its terms fall within the acceptable criteria we have established as of the time of our approval.
You must collaterally assign the lease or sublease for the franchise to us as security for your timely performance of all obligations under the Franchise Agreement and obtain the Lessors consent to the collateral assignment. A copy of the collateral assignment is attached as Exhibit "6" to the Closet & Storage Concepts Franchise Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the site for a franchised business must be approved by the company. The criteria for site approval include demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition from other businesses (including proximity to other More Space Place or Closet & Storage Concepts locations), the nature of other businesses near the site, and the size, appearance, and other physical characteristics of the proposed site. While Closet Storage Concepts may offer site selection assistance, the franchisee retains the primary responsibility for finding an acceptable location.
Before a franchisee can sign a lease or sublease for their business premises, Closet Storage Concepts must approve it. While the company states that it will not unreasonably or untimely withhold approval, it can deny approval if the general business terms do not meet their standards. Franchisees must provide Closet Storage Concepts with a copy of the signed lease within 15 days of its execution. The company's approval of a lease only indicates that the terms fall within the acceptable criteria established at the time of approval.
As security for the franchisee's performance under the Franchise Agreement, the franchisee must collaterally assign the lease or sublease to Closet Storage Concepts and obtain the lessor's consent for this assignment. A copy of the collateral assignment agreement is included as Exhibit "6" to the Closet & Storage Concepts Franchise Agreement. This requirement ensures that Closet Storage Concepts has recourse if the franchisee fails to meet their obligations under the agreement.