What is the dependency for the Closet Storage Concepts franchisee to find a location in the Search Area?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee may be permitted to operate a satellite location within the granted Territory pursuant to all terms and conditions of this Agreement, as applicable, unless otherwise expressly indicated.
- 1.2 Approved Location. If the Approved Location is not identified on Exhibit 1 when this Agreement is executed, then Franchisee is responsible for locating a site within the geographic site selection area described on Exhibit 1 (the "Search Area"). The Search Area is delineated for the sole purpose of site selection and does not provide any territorial exclusivity or protection. Franchisee must find a location in the Search Area and submit it to Franchisor for approval as required in this Agreement. The exact address of Franchisee's Closet & Storage Concepts businessis set forth on Exhibit 1 and Exhibit 4 of this Agreement (said address is hereinafter referred to as the "Approved Location"). If the Approved Location is not identified in Exhibit 1 and Exhibit 4 when the parties execute this Agreement, Franchisee shall find a location and submit it to Franchisor for approval as required in Section 1.3.
- 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, if the approved location is not identified when the Franchise Agreement is executed, the franchisee is responsible for finding a site within the designated Search Area. The Search Area is specifically for site selection and does not offer any territorial exclusivity or protection. The franchisee must then submit the location to Closet Storage Concepts for approval.
Within 120 days of the agreement's execution by Closet Storage Concepts, the franchisee must execute a Business Location Agreement. This period can be extended by an additional 120 days if the franchisee diligently complies with their obligations. Before leasing or purchasing a site, the franchisee, with Closet Storage Concepts' assistance, needs to find a location that meets the franchisor's site selection guidelines.
The franchisee is required to submit a description of the site to Closet Storage Concepts in a specified format. This submission must include evidence that the site meets Closet Storage Concepts' site selection guidelines, along with any other information reasonably required by the franchisor. This may include a letter of intent or other evidence confirming the franchisee's favorable prospects for securing the site. This process ensures that the location aligns with Closet Storage Concepts' standards and has a reasonable chance of success.