What happens if a Closet Storage Concepts franchisee changes bank accounts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall participate in Franchisor's electronic funds transfer program under which Franchisor automatically deducts the weekly royalty and other payments owed to Franchisor under this Agreement from Franchisee's bank account.
Before opening, Franchisee shall sign and give to Franchisor's bank all documents necessary to effectuate this program.
Franchisee shall immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in account numbers.
Franchisor may require that Franchisee execute its then-current form of electronic funds transfer agreement, a copy of which is attached hereto as Exhibit 12.
Franchisor reserves the right to require Franchisee to submit all payments due to Franchisor or its affiliates arising out of or related to the Franchised Business in any form or manner Franchisor prescribes.
All weekly payments required under this section shall be due and deducted from Franchisee's bank account on Monday of each week on the receipts for the preceding week or such other day as Franchisor mandates.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, franchisees are required to participate in an electronic funds transfer program for royalty and other payments. This means Closet Storage Concepts will automatically deduct these payments from the franchisee's bank account.
Before opening their Closet Storage Concepts business, franchisees must sign and provide all necessary documents to the franchisor's bank to enable this electronic transfer program. Critically, the franchisee must immediately inform Closet Storage Concepts of any changes to their banking relationship, including any changes to account numbers.
Closet Storage Concepts retains the right to require franchisees to use any payment method they prescribe for payments related to the franchised business. Weekly payments are due and will be deducted from the franchisee's bank account each Monday for the preceding week's receipts, or on another day that Closet Storage Concepts mandates. Failure to adhere to these payment terms could potentially lead to a breach of the franchise agreement.