What is the deadline for a Closet Storage Concepts franchisee to execute a Business Location Agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Site Search; Purchase or Lease of Premises. Within one hundred and twenty (120) days after Franchisor's execution of this Agreement, Franchisee shall execute a Business Location Agreement in the form attached hereto as Exhibit 4.
The parties may extend the 120 day period for an additional 120 days provided Franchisee diligently complied with the obligations of this Section 1.3.
Prior to acquiring by lease or purchase a site for the Franchised Business, Franchisee with Franchisor's assistance (as described in Section 4.2 of this Agreement) shall locate a site for the Franchised Business that satisfies the site selection guidelines provided to Franchisee by Franchisor pursuant to Section 4.2 of this Agreement.
Franchisee shall submit to Franchisor in the form specified by Franchisor a description of the site, including evidence satisfactory to Franchisor demonstrating that the site satisfies Franchisor's site selection guidelines, together with such other information and materials as Franchisor may reasonably require, including, but not limited to, a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the site.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, a franchisee must execute a Business Location Agreement within 120 days after Closet Storage Concepts executes the Franchise Agreement. The Business Location Agreement is in the form attached as Exhibit 4 to the Franchise Agreement.
However, the 120-day period may be extended for an additional 120 days if the franchisee diligently complies with their obligations related to site selection. This extension provides some flexibility if finding and securing a suitable location takes longer than initially anticipated.
Prior to leasing or purchasing a site, the franchisee, with Closet Storage Concepts' assistance, must locate a site that meets the franchisor's site selection guidelines. The franchisee must then submit a description of the site to Closet Storage Concepts, along with evidence that the site meets the franchisor's guidelines and a letter of intent or other evidence confirming the franchisee's prospects for obtaining the site. This process ensures that the location is suitable for a Closet Storage Concepts franchise and aligns with the brand's standards.