How can the Closet Storage Concepts franchise agreement be changed?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
hisor's proposal of a location does not constitute Franchisor's representation or guarantee that Franchisee shall succeed at the selected location, nor an expression of Franchisor's opinion regarding the viability of the location.
- 1.7 Acceptance of Relocation. If, within thirty (30) days after receipt of Franchisor's proposal of a new location, Franchisee gives to Franchisor written notice of acceptance of such proposal, and either enters into such tendered lease, sublease, or sale contract, or if none is tendered, agrees in writing to comply with any and all requirements prescribed by Franchisor relating to the lease of the Closet & Storage Concepts business premises and construction or alteration of improvements on the premises, then notwithstanding the termination right at Section 8.2.2 (r) of this Agreement, this Agreement shall continue for the remainder of the term and shall be deemed amended to refer to such new location. If Franchisee fails to comply with the provisions of this Section 1.7 within said thirty (30) day period, then Franchisor shall have the right to terminate this Agreement pursuant to Section 8.2.2 (r), and Franchisee shall have no further rights under or by virtue of Sections 1.6 through 1.7 of this Article.
- 1.8 Other Channels of Distribution. Franchisor and Franchisor's affiliates, reserve the unrestricted right to offer products and services, whether now existing or developed in the future, identified by the Proprietary Marks or other marks Franchisor and/or Franchisor's affiliates own or license, through any distribution method Franchisor or its affiliates may establish, and may franchise or license others to do so, both within and outside the Territory, regardless of whether the offering of products or services in the other channels of distribution compete with Franchisee's Closet & Storage Concepts business. These other channels of distribution may include locations and venues other than a Closet & Storage Concepts location, other retail establishments, mail order, catalogs, the Internet, and any similar outlets or distribution methods as Franchisor and/or its affiliates determine, in Franchisor's or its affiliate's sole discretion. This Agreement does not grant Franchisee any rights to distribute products through other channels of distribution as described in this Section 1.8, and Franchisee has no right to share, nor does Franchisee expect to share, in any of the proceeds Franchisor and/or Franchisor's affiliates or franchisees or licensees or any other party receives in connection with the alternate channels of distribution.
2. TERM AND RENEWAL
- 2.1 Term. This Agreement grants rights to Franchisee for a period of 10 years and is effective when signed by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts Franchise Disclosure Document, the franchise agreement can be amended in specific situations. If Closet Storage Concepts proposes a new location for the business, the franchisee has 30 days to accept the proposal in writing. By accepting the new location and complying with the franchisor's requirements for leasing and construction, the franchise agreement is effectively amended to refer to the new location. If the franchisee does not comply within the 30-day period, Closet Storage Concepts has the right to terminate the agreement.
Additionally, the standards and specifications applicable to the operation of the franchised Closet Storage Concepts business can be changed by Closet Storage Concepts from time to time. These changes, which can include standards and specifications for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment, can be communicated through written notice or changes to the Operations Manual. Franchisees are obligated to implement these changes at their own expense as if they were part of the original agreement.
Furthermore, when a franchisee seeks to renew their franchise agreement, the agreement is subject to changes reflecting the then-current standards and image of the Closet Storage Concepts system. As part of the renewal process, the franchisee must execute a release of claims against Closet Storage Concepts, which is another form of amending the relationship and obligations. Therefore, while the core agreement remains, adjustments are made through location changes, system updates, and renewal requirements.