Is the lease for the showroom site subject to approval or disapproval by Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Closet & Storage Concepts business, we will:
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- Assist with respect to selecting a showroom site (Franchise Agreement Section 1.3, 4.2)
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- Assist you in negotiating a lease for the showroom site which you have selected. The lease is subject to our approval or disapproval which generally shall be given within 30 days after you submit a written copy of the lease to us. You should consult with an attorney who is experienced in reviewing leases for commercial locations. We do not anticipate owning the premises, although we reserve the right to do so. (Franchise Agreement – Section 1.3)
You must select an acceptable site within your Territory within 120 days after you sign the Franchise Agreement. Your site must be at least 3,000 square feet in area. We generally will approve or disapprove of the site within 60 days after we receive notice of and information about the location. If we have not yet designated an accepted location for the Franchised Business when the Franchise Agreement is signed then you are responsible for locating a site within a specified geographic site selection area (the "Search Area"). The Search Area is delineated for the sole purpose of site selection and does not provide any territorial exclusivity or protection.
In evaluating the site, we may inspect the site and may consider the lease obligations, population, demographic characteristics, traffic patterns, parking, character and attractiveness of the neighborhood, competing outlets and the proximity to those outlets, other Closet & Storage Concepts and More Space Place locations and other businesses. Our approval indicates that we believe that the particular site falls within its criteria at the time we conducted our evaluation.
You must independently evaluate and investigate the proposed site, observing customer traffic patterns near the location at different times of the day and on different days of the week and speaking with other tenants near the location under consideration. We must approve the site before you enter into lease negotiations. (Franchise Agreement – Section 1.3)
If you fail to obtain a site for the showroom which is acceptable to us in the time period required, we may terminate the Franchise Agreement (Franchise Agreement - Section 1.3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the lease for the showroom site is subject to approval or disapproval by Closet Storage Concepts. Closet Storage Concepts will assist franchisees in negotiating a lease for the showroom site they have selected. Closet Storage Concepts generally provides its decision within 30 days after receiving a written copy of the lease.
Closet Storage Concepts must approve the site before franchisees enter into lease negotiations. Franchisees are required to select an acceptable site within their territory within 120 days after signing the Franchise Agreement. The site must be at least 3,000 square feet. Closet Storage Concepts generally approves or disapproves of the site within 60 days after receiving notice and information about the location.
In evaluating the site, Closet Storage Concepts may inspect the site and consider factors such as lease obligations, population, demographic characteristics, traffic patterns, parking, the character and attractiveness of the neighborhood, competing outlets and their proximity, other Closet & Storage Concepts and More Space Place locations, and other businesses. However, franchisees must independently evaluate and investigate the proposed site, observing customer traffic patterns and speaking with other tenants. If a franchisee fails to obtain a site acceptable to Closet Storage Concepts within the required time, Closet Storage Concepts may terminate the Franchise Agreement.