What are Closet Storage Concepts franchisees required to do to maximize revenues and profits?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
shall provide Franchisee a standard price list for items which it sells to franchisees, including a description of each item and applicable price or lease terms, prepayment discounts (if any) and shipping charges. Franchisor reserves the right to withhold approval of any supplier for any reason.
5.3 Operations.
- 5.3.1 Franchisee shall operate the Franchised Business for at least those hours and days specified by Franchisor in the Operations Manual and will at all times operate the Franchised Business diligently so as to maximize the revenues and profits therefrom.
- 5.3.2 Franchisee is not limited to providing services and products to only customers inside of the Territory. However, Franchisee may not market, advertise for and/or solicit for orders outside of the Territory, except as provided under this Agreement. If an installation is to take place within another franchisee's Territory, it is a violation of this Agreement if Franchisee does not notify Franchisor and the affected franchisee before the installation occurs. In the Franchisor's sole discretion, Franchisee may be required to cooperate with that franchisee, share in the installation, share any financial compensation, or give the job to the other franchisee.
- 5.3.3 Franchisee shall at all times maintain and employ working capital as Franchisor may reasonably deem necessary to enable Franchisee to properly and fully carry out and perform all of its duties, obligations and responsibilities under this Agreement and to operate the business in a businesslike, proper and efficient manner.
- 5.3.4 Franchisee shall operate the Franchised Business in conformity with the highest ethical standards and sound business practices and in a manner which shall enhance the Closet & Storage Concepts Proprietary Marks and the Closet & Storage Concepts System. Franchisee shall be solely responsible for all employment decisions and functions, including hiring, firing, discipline, supervision, setting terms of employment and compensation and implementing a training program for employees of the Franchised Business in accordance with training standards and procedures Franchisor specifies in order for Franchisee to conduct the business of the Franchised Business at all times in compliance with Franchisor's requirements. Franchisee shall never represent or imply to prospective employees and employees that they shall be or are employed by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, franchisees are obligated to operate their franchised business diligently to maximize revenues and profits. This includes operating the business for at least the hours and days specified by Closet Storage Concepts in the Operations Manual. Franchisees must also maintain and employ working capital that Closet Storage Concepts deems reasonably necessary to properly carry out all duties and operate the business efficiently.
Closet Storage Concepts franchisees are not restricted to providing services and products only to customers within their territory. However, they are restricted from marketing, advertising, or soliciting orders outside their territory, unless otherwise provided in the agreement. If an installation is to occur within another franchisee's territory, the franchisee must notify Closet Storage Concepts and the affected franchisee before the installation. Closet Storage Concepts has the sole discretion to require the franchisee to cooperate with the other franchisee, share in the installation, share financial compensation, or give the job to the other franchisee.
Furthermore, Closet Storage Concepts franchisees must operate the franchised business in conformity with the highest ethical standards and sound business practices. They must also operate in a manner that enhances the Closet & Storage Concepts Proprietary Marks and the Closet & Storage Concepts System. Franchisees are also required to give prompt, courteous, and efficient service to the public, perform work competently, and conduct all business dealings with honesty, integrity, and ethical conduct. Franchisees must also maintain an adequate inventory of products to fulfill public demand in their market.