Is a Closet Storage Concepts franchisee allowed to assign the General Release?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.4.3 Franchisee has executed a release of any and all claims against Franchisor and its parents, affiliates, and their equity owners, officers, directors, agents, employees, attorneys and accountants arising out of or related to this Agreement or any related agreement.
The release shall contain language and be of the form chosen by Franchisor, except the release shall not release any liability specifically provided for by any applicable state statute regulating franchising.
Our current form of release is attached to this Agreement as Exhibit "5".
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
The 2025 Closet Storage Concepts Franchise Disclosure Document discusses a general release in the context of renewing a franchise agreement. Specifically, to renew their franchise agreement, a franchisee must execute a release of claims against Closet Storage Concepts and its affiliates.
The FDD states that the release must contain language and be in a form chosen by Closet Storage Concepts, but it cannot release any liability specifically provided for by any applicable state statute regulating franchising. The current form of release is attached to the Franchise Agreement as Exhibit "5".
The excerpt does not state whether a Closet Storage Concepts franchisee is allowed to assign the General Release. Therefore, it is important for a prospective franchisee to ask the franchisor about the possibility of assigning the General Release.