When is the initial franchise fee for a Closet Storage Concepts franchise payable?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
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The Initial Franchise Fee for a Closet & Storage Concepts franchise is Forty-Nine Thousand Five-hundred dollars ($49,500.00) for a territory having a population of 1,000,000 individuals or more. If you are in compliance with your Closet & Storage Concepts franchise agreement(s), and any other agreements with us, you may apply for another Closet & Storage Concepts franchise license and we may grant you the right to operate an additional Closet & Storage Concepts business. The Initial Franchise Fee for each Closet & Storage Concepts business beyond the first one is Forty Thousand dollars ($40,000.00). Once your Franchised Business has been established, if we feel demand justifies it, we may allow you to operate the Franchised Business out of more than one location within your granted Territory to better service the customers in your Territory under your existing Franchise Agreement. There are no additional initial fees associated with that. All Initial Franchise Fees are payable in full and in a lump sum when you sign the Franchise Agreement. All Initial Franchise Fees are deemed earned upon the signing and delivery of the Franchise Agreement by us. Initial Franchise Fees are not refundable to you in whole or in part under any circumstances. Initial Franchise Fees are imposed uniformly on all franchisees and are not refundable under any circumstances, except that we may negotiate the Initial Franchise Fee as an inducement for existing operators to open additional locations, to induce someone to take over an operating Franchised Business or similar circumstances or considerations.
CAD Design Software Key
You are obligated to purchase a minimum of one (1) CAD Design Software Key from us for your Closet & Storage Concepts business; which will have our proprietary product library, to operate the Franchised Business. The current cost for one (1) CAD Design Software Key is $3,250 and we anticipate that you may need up to three. This fee is subject to change based on changes in operating requirements and changes in the software manufacturer's pricing.
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the initial franchise fee is payable in full as a lump sum when you sign the Franchise Agreement. The initial franchise fee is $49,500 for a territory with a population of 1,000,000 or more. For each additional Closet Storage Concepts franchise beyond the first, the initial franchise fee is $40,000. These fees are deemed earned by Closet Storage Concepts upon signing and delivery of the Franchise Agreement.
This means that a prospective Closet Storage Concepts franchisee must have the full initial franchise fee amount available at the time of signing the agreement. This is a standard practice in franchising, as the fee compensates the franchisor for granting the franchise rights and providing initial support and training. The FDD also states that the initial franchise fees are generally non-refundable, so a franchisee should be certain before signing the agreement.
However, Closet Storage Concepts may negotiate the initial franchise fee under certain circumstances, such as when an existing operator opens additional locations or to induce someone to take over an operating franchised business. Closet Storage Concepts also offers a discount to qualified veterans, providing a 25% reduction in the initial franchise fee for their first franchised business, provided the veteran owns 51% or more of the franchise. This could significantly lower the initial investment for eligible veterans.