What day of the week are weekly payments due from a Closet Storage Concepts franchisee?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall participate in Franchisor's electronic funds transfer program under which Franchisor automatically deducts the weekly royalty and other payments owed to Franchisor under this Agreement from Franchisee's bank account.
Before opening, Franchisee shall sign and give to Franchisor's bank all documents necessary to effectuate this program.
Franchisee shall immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in account numbers.
Franchisor may require that Franchisee execute its then-current form of electronic funds transfer agreement, a copy of which is attached hereto as Exhibit 12.
Franchisor reserves the right to require Franchisee to submit all payments due to Franchisor or its affiliates arising out of or related to the Franchised Business in any form or manner Franchisor prescribes.
All weekly payments required under this section shall be due and deducted from Franchisee's bank account on Monday of each week on the receipts for the preceding week or such other day as Franchisor mandates.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, weekly royalty and other payments are due and will be deducted from the franchisee's bank account on Mondays. These payments cover receipts from the preceding week. However, Closet Storage Concepts retains the right to mandate a different payment day.
Closet Storage Concepts requires franchisees to participate in an electronic funds transfer program for these payments. Franchisees must provide the necessary banking documents before opening their business. They are also obligated to inform Closet Storage Concepts immediately of any changes to their banking relationship, including account number changes.
Closet Storage Concepts also reserves the right to request payments in any form or manner they prescribe. This gives Closet Storage Concepts flexibility in how they collect payments and allows them to adapt to changing circumstances or technological advancements in payment processing.