What is the initial franchise fee for a first Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
e Concepts business; and provided, further, that Franchisor may offset against amounts owed to a Franchisee under this subsection any amounts owed by the Franchisee to the Franchisor.
3. FEES AND COSTS; ADVERTISING
- 3.1 Initial Franchise Fee. Franchisee will pay, concurrently with the execution of this Agreement, to Franchisor the sum of Forty-Nine Thousand Five Hundred Dollars ($49,500.00). If this Agreement is for a Franchised Business beyond Franchisee's first Franchised Business the Fee will be Forty Thousand Dollars ($40,000.00). Said Initial Franchise Fee is in addition to the obligation of Franchisee to make periodic royalty payments pursuant to Section 3.3 hereof. The Initial Franchise Fee does not apply to additional locations of Franchisee within the same Territory.
- 3.2 Refund of Initial Franchise Fee.The Initial Franchise Fee referred to in Section 3.1, above, shall be deemed fully earned by Franchisor aft
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the initial franchise fee for the first franchised business is $49,500. This fee is paid when the Franchise Agreement is executed. However, if the agreement is for a franchise beyond the franchisee's first, the fee is reduced to $40,000.
The initial franchise fee does not apply to additional locations within the same territory. This means that a franchisee who already owns a Closet Storage Concepts location in a specific area will not have to pay an additional initial franchise fee to open another location within that same territory.
The FDD specifies that the initial franchise fee is considered fully earned by Closet Storage Concepts once the agreement is duly executed and delivered. The document also states that the initial franchise fee is generally non-refundable, even if the agreement is terminated.