What must a Closet Storage Concepts franchisee do if they will purchase the Approved Location?

According to Closet Storage Concepts's 2025 Franchise Disclosure Document, if a franchisee intends to purchase the approved location for their franchised business, they must first submit a copy of the proposed contract of sale to Closet Storage Concepts for written approval before executing the contract. After the contract is executed, the franchisee must furnish Closet Storage Concepts with a copy of the executed contract of sale within ten days.

Furthermore, the franchisee is required to grant Closet Storage Concepts the option to acquire the approved location in the event of any default by the franchisee under the Franchise Agreement or under any mortgage related to the approved location. This provision ensures that Closet Storage Concepts has a mechanism to protect its brand and system standards, even if a franchisee faces financial difficulties or breaches the agreement.

This requirement is significant for prospective franchisees as it gives Closet Storage Concepts a degree of control over the physical location of the business. Franchisees should carefully consider this provision and its potential implications for their ownership and financing of the property. It is advisable to seek legal counsel to fully understand the terms and conditions related to this option to acquire the location.