What must the evidence submitted by the Closet Storage Concepts franchisee demonstrate to the Franchisor?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
With the written consent of Franchisor, Franchisee may operate the Franchised Business out of more than one location within the Territory provided that each of the following conditions precedent are fulfilled:
- 1.5.1 The Franchisee shall submit reasonable projections based upon pertinent marketing data that the Territory can support such multiple locations and that the opening of multiple locations is desirable to avoid loss of marketing position and business to competition;
- 1.5.2 The Franchisee shall demonstrate that the establishment of more than one location does not impact materially and adversely upon a franchise location or potential franchise location outside of the Territory; and
- 1.5.3 In obtaining the lease for the additional locations, Franchisee shall comply with the requirements set forth in Section 1.3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, a franchisee seeking to operate the Franchised Business out of multiple locations within their territory must first obtain written consent from Closet Storage Concepts. To get this approval, the franchisee needs to provide evidence to Closet Storage Concepts that satisfies specific conditions.
First, the franchisee must submit reasonable projections, supported by relevant marketing data, demonstrating that the territory can sustain multiple locations. This evidence should also show that opening these additional locations is beneficial for maintaining market position and preventing business loss to competitors.
Second, the franchisee must demonstrate that establishing more than one location will not negatively impact any existing or potential franchise locations outside of their exclusive territory. Finally, the franchisee needs to show that they have complied with the lease requirements outlined in Section 1.3 of the Franchise Agreement when securing leases for the additional locations.