Can the Closet Storage Concepts franchisee extend the site search period?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Site Search; Purchase or Lease of Premises. Within one hundred and twenty (120) days after Franchisor's execution of this Agreement, Franchisee shall execute a Business Location Agreement in the form attached hereto as Exhibit 4.
The parties may extend the 120 day period for an additional 120 days provided Franchisee diligently complied with the obligations of this Section 1.3.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, a franchisee is initially given 120 days after the agreement's execution by the franchisor to execute a Business Location Agreement. This involves finding a location within the designated search area and submitting it to Closet Storage Concepts for approval.
The agreement allows for a one-time extension of this 120-day period, granting an additional 120 days. However, this extension is conditional. To qualify, the franchisee must demonstrate diligent compliance with all obligations related to the site search during the initial 120-day period.
This provision offers some flexibility for Closet Storage Concepts franchisees who may encounter difficulties in securing a suitable location within the initial timeframe. However, it also emphasizes the importance of proactive and diligent efforts in the site selection process to ensure eligibility for the extension.