To whom is the franchise fee paid when starting a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditures | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Franchise Fee2 | $40,000 to $49,500 | Lump Sum | Upon Signing Franchise Agreement | Us |
| Travel and Living Expense While Training3 | $3,000 to $5,000 | As Agreed | During Training | Third Parties |
| Real Estate | $15,000 to | As Agreed | Before Opening | Various |
| Improvements4 | $35,000 | Contractors | ||
| Office Equipment | $1,000 to | As Agreed | Before Opening | Third Parties |
| and Supplies5 | $1,500 | |||
| Computer Hardware | $3,700 to | As Agreed | Before Opening | Third Parties/Us |
| and Software6 | $4,100 | |||
| CAD Design | $3,250 to | As Agreed | Before Opening | Us |
| Software Keys7 | $9,750 | |||
| Pallet Lifter and | $1,000 to | As Agreed | Before Opening | Third Parties |
| Fork Lift8 | $10,000 | |||
| Van9 | $1,600 to $3,700 | Lump Sum | Before Opening | Auto Dealer |
| Signs and Graphics10 | $2,000 to $9,000 | As Agreed | Before Opening | Third Parties |
| Opening Showroom Displays11 | $5,000 to $32,000 | Lump Sum | Upon delivery to your store, and receipt of invoice. | Us/Third Parties |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $40,000 to $49,500, is paid directly to Closet Storage Concepts. This payment is made as a lump sum when the Franchise Agreement is signed.
In addition to the franchise fee, the FDD outlines other payments made to Closet Storage Concepts. For example, payments for CAD Design Software Keys, ranging from $3,250 to $9,750, are made to Closet Storage Concepts before opening. Also, payments for opening showroom displays, which range from $5,000 to $32,000, are made to Closet Storage Concepts or third parties upon delivery to the franchisee's store and receipt of invoice.
Prospective franchisees should note that all fees payable to Closet Storage Concepts are non-refundable, though third parties may have different refund policies. Understanding where your money is going during the initial investment phase is crucial, and this table provides a clear breakdown of which entities receive payment for various expenditures.