How does Closet Storage Concepts designate my territory?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Closet & Storage Concepts business, we will:
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- Designate your territory (Franchise Agreement Section 1.4).
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- Assist with respect to selecting a showroom site (Franchise Agreement Section 1.3, 4.2)
If we have not yet designated an accepted location for the Franchised Business when the Franchise Agreement is signed then you are responsible for locating a site within a specified geographic site selection area (the "Search Area"). The Search Area is delineated for the sole purpose of site selection and does not provide any territorial exclusivity or protection.
You must select an acceptable site within your Territory within 120 days after you sign the Franchise Agreement. Your site must be at least 3,000 square feet in area.
You must independently evaluate and investigate the proposed site, observing customer traffic patterns near the location at different times of the day and on different days of the week and speaking with other tenants near the location under consideration. We must approve the site before you enter into lease negotiations. (Franchise Agreement – Section 1.3)
If you fail to obtain a site for the showroom which is acceptable to us in the time period required, we may terminate the Franchise Agreement (Franchise Agreement - Section 1.3)
In evaluating the site, we may inspect the site and may consider the lease obligations, population, demographic characteristics, traffic patterns, parking, character and attractiveness of the neighborhood, competing outlets and the proximity to those outlets, other Closet & Storage Concepts and More Space Place locations and other businesses.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the franchisor will designate a territory for the franchisee before they open their Closet Storage Concepts business. This is part of the pre-opening assistance that Closet Storage Concepts provides. The specifics of this territory designation are found in Section 1.4 of the Franchise Agreement.
Additionally, franchisees are responsible for locating a site for their showroom within a specific geographic site selection area, referred to as the "Search Area," if a location hasn't been determined when the Franchise Agreement is signed. This Search Area is only for site selection and does not offer any territorial exclusivity or protection. The selected site must be a minimum of 3,000 square feet.
Closet Storage Concepts must approve the site before the franchisee begins lease negotiations. In evaluating a potential site, Closet Storage Concepts may consider factors such as lease obligations, population, demographic characteristics, traffic patterns, parking, the character and attractiveness of the neighborhood, competing outlets, and the proximity to other Closet Storage Concepts and More Space Place locations, as well as other businesses. If a franchisee fails to secure an acceptable site within the required timeframe, Closet Storage Concepts reserves the right to terminate the Franchise Agreement.