What factors may Closet Storage Concepts consider when approving an alternative supplier?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
If you desire to purchase any product or item for which approval is required from a supplier that is not on our approved supplier list, you must request approval of the item or supplier in writing and we will evaluate the supplier and/or item for approval. Although we are not contractually bound to evaluate any supplier or item within a definite time period, we will make a good faith effort to evaluate the supplier or item and to notify you of approval or disapproval within 30 days from the date we receive your written request.
Before approving any supplier, we may take into consideration: a) consistency of products and/or name brands, b) economies of scale achieved by larger volumes, and c) certain other benefits that a particular supplier may offer, such as new product development capability. When approving a supplier, we take into consideration the System as a whole, which means that certain franchisees may pay higher prices than they could receive from another supplier that is not approved. We reserve the right to withhold approval of a supplier for any reason. We do not
release our standards and specifications or criteria for supplier approval to System franchisees.
You may not purchase any item from any supplier for which approval is required until you have first received written notification of our approval. You must reimburse us for our reasonable costs of evaluating, inspecting and testing the proposed supplier or item, regardless of whether we approve the supplier or item.
We may withdraw our approval at any time if any supplier's performance does not meet our criteria, if we change our specifications, standards or requirements or for other reasons.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, if a franchisee wants to purchase products from a supplier not already on the approved list, they must request approval in writing. While Closet Storage Concepts is not bound by a specific timeframe, they will make a good faith effort to evaluate the supplier or item and notify the franchisee of their decision within 30 days of receiving the written request.
Closet Storage Concepts may consider several factors when evaluating a potential new supplier. These factors include the consistency of the products and/or name brands, the economies of scale achieved by larger volumes, and any other benefits the supplier may offer, such as new product development capabilities. Closet Storage Concepts will consider the entire system when approving a supplier, even if it means some franchisees might pay higher prices than they would with a non-approved supplier.
Closet Storage Concepts maintains the right to withhold approval of a supplier for any reason. Franchisees cannot purchase any item from a non-approved supplier until they receive written approval. Franchisees must also reimburse Closet Storage Concepts for the reasonable costs of evaluating, inspecting, and testing the proposed supplier or item, regardless of whether the supplier is ultimately approved. Closet Storage Concepts can also withdraw approval at any time if a supplier's performance doesn't meet their criteria, if they change their specifications, standards, or requirements, or for other reasons. This policy ensures Closet Storage Concepts maintains control over the quality and consistency of its products and services across all franchise locations.