Which exhibit in the Closet Storage Concepts franchise agreement contains the Disclosure Questionnaire?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
EXHIBIT 7
DISCLOSURE QUESTIONNAIRE
This Questionnaire should not be completed by residents of, or anyone seeking to locate a franchise in, the following states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
As you know, you and CLOSETS UNLIMITED OF NEW JERSEY, INC., a New Jersey corporation ("Franchisor") are entering into a Franchise Agreement (the "Franchise Agreement") for the operation of a Closet & Storage Concepts business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually, and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.
In the event that you are intending to purchase an existing Franchised Business from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the Disclosure Questionnaire is included as Exhibit 7 to the Franchise Agreement. This questionnaire is designed to determine if any unauthorized statements or promises were made to the prospective franchisee by Closet Storage Concepts' representatives or brokers that were not disclosed in the Franchise Disclosure Document (FDD) or that may be untrue, inaccurate, or misleading.
The questionnaire aims to ensure that the franchisee understands that purchasing a franchise is a business decision with associated risks and that they are not relying on any unauthorized oral statements or assurances made during negotiations. It also clarifies that information received from a transferring franchisee (in the case of purchasing an existing franchise) is not the responsibility of Closet Storage Concepts.
It is important to note that the Disclosure Questionnaire is not to be completed by residents of, or anyone seeking to locate a franchise in, the following states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This suggests that Closet Storage Concepts may have specific legal or regulatory requirements in these states that necessitate a different approach to disclosures and franchisee verification.