What happens if a manager of a Closet Storage Concepts franchise resigns or is terminated?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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)
The 2025 Franchise Disclosure Document for Closet Storage Concepts states that the franchisee is responsible for all employment decisions related to their franchise. This includes hiring, firing, discipline, supervision, setting terms of employment and compensation, and implementing a training program for employees. The franchisee must also follow the training standards and procedures that Closet Storage Concepts specifies.
In effect, if a manager resigns or is terminated from a Closet Storage Concepts franchise, the franchisee is responsible for managing the situation. This includes finding a replacement, ensuring the continued smooth operation of the franchise, and adhering to all employment laws and regulations. The franchisee must also ensure that all employees, including any new manager, are properly trained according to Closet Storage Concepts' standards.
Closet Storage Concepts emphasizes that the franchisee is the employer, and the franchisee cannot represent or imply to employees that they are employed by Closet Storage Concepts itself. This reinforces the franchisee's role as the direct employer and their responsibility for all personnel matters within their franchise. This is a common arrangement in franchising, where the franchisee operates as an independent business owner.