What is Exhibit '5' to the Closet Storage Concepts Franchise Agreement?

According to the 2025 Closet Storage Concepts Franchise Disclosure Document, Exhibit "5" of the Franchise Agreement is the current form of release. This release is relevant when a franchisee seeks to renew their franchise agreement. As part of the renewal conditions, the franchisee must execute a release of claims against Closet Storage Concepts and its affiliates.

The release must adhere to the language and form specified by Closet Storage Concepts. However, it cannot release any liability specifically protected by state statutes regulating franchising. This ensures that franchisees do not waive rights that are legally protected under applicable state laws.

This requirement is standard practice in franchising, as it protects the franchisor from potential future claims related to the franchise agreement. Prospective franchisees should carefully review the form of release (Exhibit "5") with legal counsel to understand the scope of claims they will be waiving upon renewal.