What must a Closet Storage Concepts franchisee do after executing a contract of sale for the Approved Location?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee will purchase the Approved Location for the Franchised Business, Franchisee shall submit a copy of the proposed contract of sale to Franchisor for its written approval prior to its execution and shall furnish to Franchisor a copy of the executed contract of sale within ten (10) days after execution.
In the event of such purchase, Franchisee shall grant Franchisor the option to acquire the Approved Location in the event of any default by Franchisee under this Agreement or under any mortgage relating to the Approved Location.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, if a franchisee will purchase the Approved Location for their Franchised Business, they must submit a copy of the proposed contract of sale to Closet Storage Concepts for written approval before executing it. After the contract is executed, the franchisee must furnish a copy of the executed contract of sale to Closet Storage Concepts within ten days.
Additionally, the franchisee must grant Closet Storage Concepts the option to acquire the Approved Location if the franchisee defaults under the Franchise Agreement or any mortgage related to the Approved Location. This provision ensures that Closet Storage Concepts has some control over the location of the franchise, even if the franchisee purchases the property.
This requirement is fairly standard in franchising, as franchisors typically want to maintain some level of oversight over the location of their franchises to protect their brand and ensure consistency across the system. The option to acquire the property in case of default provides an additional layer of security for Closet Storage Concepts.