What does the grant of a Closet Storage Concepts franchise allow the franchisee to do?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
luable consideration, the receipt and sufficiency of which is acknowledged, Franchisor and Franchisee agree as follows:
1. GRANT OF FRANCHISE AND LOCATION
- 1.1 Grant and Acceptance. Franchisor grants to Franchisee, and Franchisee accepts, all subject to the terms of this Agreement: a franchise to establish and operate one Closet & Storage Concepts business using the Closet & Storage Concepts System and the Proprietary Marks pursuant to this Agreement (the "Franchised Business"). Franchisee shall use the Proprietary Marks, participate in the promotional, advertising and marketing programs that are made available to Franchisee, and have access to certain proprietary trade secrets, marketing and business expertise of Franchisor, as they may be modified from time to time, in connection with the Franchised Business. If Franchisor determines that demand justifies it, Franchisee may be permitted to operate a satellite location within the granted Territory pursuant to all terms and conditions of this Agreement, as applicable, unless otherwise expressly indicated.
- 1.2 Approved Location. If the Approved Location is not identified on Exhibit 1 when this Agreement is executed, then Franchisee is responsible for locating a site within the geographic site selection area described on Exhibit 1 (the "Search Area"). The Search Area is delineated for the sole purpose of site selection and does not provide any territorial exclusivity or protection. Franchisee must find a location in the Search Area and submit it to Franchisor for approval as required in this Agreement. The exact address of Franchisee's Closet & Storage Concepts businessis set forth on Exhibit 1 and Exhibit 4 of this Agreement (said address is hereinafter referred to as the "Approved Location"). If the Approved Location is not identified in Exhibit 1 and Exhibit 4 when the parties execute this Agreement, Franchisee shall find a location and submit it to Franchisor for approval as required in Section 1.3.
- 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. Prior to acquiring by lease or purchase a site for the Franchised Business, Franchisee with Franchisor's assistance (as described in Section 4.2 of this Agreement) shall locate a site for the Franchised Business that satisfies the site selection guidelines provided to Franchisee by Franchisor pursuant to Section 4.2 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee the right to establish and operate one Closet & Storage Concepts business. This business must use the Closet & Storage Concepts System and Proprietary Marks. The franchisee is required to use the Proprietary Marks, participate in promotional programs, and utilize the franchisor's trade secrets and expertise.
The franchisee may be allowed to operate a satellite location within their granted territory if Closet Storage Concepts determines there is sufficient demand. The standard territory size is approximately 1 million people. The franchisee is not allowed to operate a Closet & Storage Concepts business or solicit customers within another franchisee's territory.
Closet Storage Concepts also grants the franchisee the exclusive right to operate within their territory, with some exceptions. Neither Closet Storage Concepts nor its other franchisees can establish a business or solicit customers in the franchisee's territory. However, Closet Storage Concepts retains the right to operate or authorize businesses under the Proprietary Marks outside the franchisee's territory, even adjacent to it. The franchisee may operate from multiple locations within the territory with Closet Storage Concepts' written consent, provided they can demonstrate the territory can support multiple locations without negatively impacting other franchises.