From whom must a Closet Storage Concepts franchisee
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 Compliance with Standards.
Franchisee acknowledges that its obligations under this Agreement are reasonable, necessary and desirable for the operation of the Franchised Business and the Closet & Storage Concepts System.
Franchisee shall adhere to Franchisor's standards and specifications as set forth in this Agreement and the Operations Manual, including, but not limited to, standards, specifications of product and service quality and uniformity, and equipment and software compatibility among individual Closet & Storage Concepts System franchises, and any revisions or amendments.
Franchisee shall purchase and use only products and services, including equipment, vehicles, fixtures, signs, branded products or services, inventory, supplies, logo-imprinted products, software and hardware which Franchisor approves, including purchasing from approved suppliers or a designated sole supplier for any items.
Franchisor and its affiliates may be an approved supplier or designated sole supplier for any purchases of products or services.
Franchisor may charge a software setup fee.
Franchisee may purchase or obtain these products and services through Franchisor or a supplier approved by Franchisor.
Franchisee cannot be a supplier to other franchisees and cannot purchase items from another franchisee without Franchisor's express written approval.
If Franchisor has not designated an approved supplier for a particular product or service, Franchisee shall purchase these products or services only from suppliers that meet Franchisor's standards and specifications.
Franchisee may request approval of a supplier, which may, at Franchisor's option, include inspection of the proposed supplier's facilities and testing of product samples.
The independent testing facility Franchisor designates may charge a fee for the testing.
Franchisee or the proposed supplier shall pay the test fees.
Franchisee must also pay for Franchisor's costs in making a determination on the proposed supplier, including the costs of inspection of the supplier's facilities, evaluation of the test results, and a background check of the supplier.
Franchisor reserves the right, at its option, to re-inspect the facilities and products of any approved supplier, and to revoke approval if the supplier fails to continue to meet any of Franchisor's criteria.
Franchisor may receive fees and other payments from suppliers and others in connection with Franchisee's purchases and may use the fees for Franchisor's own purposes.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, franchisees must purchase and use only products and services, including equipment, vehicles, fixtures, signs, branded products or services, inventory, supplies, logo-imprinted products, software, and hardware, from Closet Storage Concepts-approved suppliers. This includes the possibility of purchasing from a designated sole supplier for certain items. Closet Storage Concepts and its affiliates can also be approved or designated as the sole supplier for any purchases of products or services.
If Closet Storage Concepts has not designated an approved supplier for a particular product or service, franchisees must purchase these products or services only from suppliers that meet Closet Storage Concepts' standards and specifications. Franchisees have the option to request approval of a supplier, which may involve inspection of the supplier's facilities and testing of product samples at the franchisee's expense. Closet Storage Concepts also reserves the right to re-inspect the facilities and products of any approved supplier and to revoke approval if the supplier fails to meet their criteria.
Closet Storage Concepts may receive fees and other payments from suppliers in connection with franchisee purchases, which they can use for their own purposes. Additionally, franchisees are prohibited from being suppliers to other franchisees or purchasing items from other franchisees without Closet Storage Concepts' express written approval. This ensures that all franchisees maintain the brand's standards and that Closet Storage Concepts can benefit from supplier relationships.