Are all Closet Storage Concepts franchisees required to contribute to the NAP on the same basis?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
All franchisees will be required to contribute on the same basis. Our suppliers may be asked to contribute to the NAP on terms we negotiate. Neither we nor our affiliates have a contractual obligation to contribute to the NAP. We have the sole right to determine contributions and expenditures from the NAP, or any other advertising program, and sole authority to determine the selection of the advertising materials and programs. We are not required, under the Franchise Agreement, to spend any amount of NAP contributions in your Territory and not all System franchisees will benefit directly or on a pro rata basis from these expenditures. (Section 3.5 of the Franchise Agreement). NAP contributions may be used at our discretion for the following: the development, production and distribution of national and/or local advertising; the creation of advertising materials and public relations which, in our sole judgment, promote the products and services offered by System businesses including development and production of advertising and marketing programs and materials; purchase of media, field marketing programs and activities; promotions, new product research and development, quality control, mystery shopper programs which may include call recording; market research; talent fees; working with public relations firms; website and social media development and maintenance; creating or maintaining a presence in virtual worlds, and for administrative, travel, debt service and operating costs and overhead.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, all franchisees are required to contribute to the National Advertising Program (NAP) on the same basis. The NAP is administered for the common benefit of all franchisees in the Closet Storage Concepts system.
The standard contribution to the NAP is $75 per week. However, Closet Storage Concepts has the right to increase this contribution up to 1% of the franchisee's weekly gross revenues. There is a condition that the contribution cannot be increased during the first year of the franchise agreement.
The funds collected through the NAP can be used for various advertising and marketing purposes, including national and local advertising, creation of advertising materials, public relations, media purchases, market research, website and social media development, and even administrative and operating costs. Closet Storage Concepts retains the sole right to determine the allocation of these funds, and there is no guarantee that all franchisees will directly benefit from the expenditures or that the funds will be spent in the franchisee's specific territory.