How long does Closet Storage Concepts have to evaluate a requested alternative supplier?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
oved supplier.
Approval of Alternative Suppliers
If you desire to purchase any product or item for which approval is required from a supplier that is not on our approved supplier list, you must request approval of the item or supplier in writing and we will evaluate the supplier and/or item for approval. Although we are not contractually bound to evaluate any supplier or item within a definite time period, we will make a good faith effort to evaluate the supplier or item and to notify you of approval or disapproval within 30 days from the date we receive your written request.
Before approving any supplier, we may take into consideration: a) consistency of products and/or name brands, b) economies of scale achieved by larger volumes, and c) certain other benefits that a particular supplier may offer, such as new product development capability. When approving a supplier, we take into consideration the System as a whole, which means that certain franchisees may pay higher prices than they could receive from another supplier that is not approved. We reserve the right to withhold approval of a supplier for any reason. We do not
release our standards and specifications or criteria for supplier approval to System franchisees.
You may not purchase any item from any supplier for which approval is required until you have first received written notification of our approval. You must reimburse us for our reasonable costs of evaluating, inspecting and testing the proposed supplier or item, regardless of whether we approve the supplier or item.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, while Closet Storage Concepts is not contractually obligated to evaluate a supplier or item within a specific timeframe, they will make a good faith effort to evaluate the supplier or item and notify the franchisee of approval or disapproval within 30 days from the date they receive the written request. This applies when a franchisee wants to purchase a product or item from a supplier not already on Closet Storage Concepts's approved list, for which approval is required.
Closet Storage Concepts may consider factors such as product consistency, economies of scale, and new product development capabilities when evaluating a potential supplier. The FDD states that Closet Storage Concepts will consider the entire system when approving a supplier, which means that some franchisees may pay higher prices than they could receive from a non-approved supplier. Closet Storage Concepts reserves the right to withhold approval for any reason.
The franchisee cannot purchase any item from a non-approved supplier until they receive written notification of approval from Closet Storage Concepts. The franchisee must also reimburse Closet Storage Concepts for the reasonable costs of evaluating, inspecting, and testing the proposed supplier or item, regardless of whether the supplier or item is ultimately approved. Closet Storage Concepts retains the right to withdraw approval at any time if a supplier's performance does not meet their criteria, if they change their specifications, standards, or requirements, or for other reasons.