Does the Closet Storage Concepts FDD specify the method of payment for the transfer fee?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer of Franchise | 50% of the | Before transfer. | Either you or the |
| then current | transferee pays | ||
| Initial | this fee to us. | ||
| Franchise Fee, | |||
| subject to a | |||
| minimum of | |||
| $24,750 |
[Item 6: OTHER FEES]
General Note: All fees are imposed by and are payable to us. We reserve the right to collect any and all fees due to us or our affiliate arising out of or in relation to the Franchised Business through ACH. The fees and costs in this Item 6 are uniformly imposed however we reserve the right to negotiate amounts in certain circumstances. All fees are nonrefundable.
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the transfer fee is due before the transfer of the franchise. The amount of the transfer fee is 50% of the then-current Initial Franchise Fee, subject to a minimum of $24,750. The FDD does not specify the method of payment for the transfer fee, but it does state that all fees are imposed by and are payable to Closet Storage Concepts. Closet Storage Concepts reserves the right to collect any and all fees due to them or their affiliate arising out of or in relation to the Franchised Business through ACH (Automated Clearing House).
While the FDD does not explicitly state that the transfer fee must be paid via ACH, it does state that Closet Storage Concepts reserves the right to collect any and all fees through ACH. This suggests that ACH is a possible payment method for the transfer fee. It is important to note that the FDD also states that the fees and costs in Item 6 are uniformly imposed; however, Closet Storage Concepts reserves the right to negotiate amounts in certain circumstances. All fees are nonrefundable.
Prospective franchisees should confirm the acceptable methods of payment for the transfer fee with Closet Storage Concepts. Understanding the payment options and any potential for negotiation is crucial before agreeing to the transfer.