What is the minimum fee for transferring a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross | Payable on each | (See Note 1) |
| Revenues | Monday via ACH for | ||
| subject to a | the week ending the | ||
| minimum of | immediately prior | ||
| $125 per week | Saturday. | ||
| (NAP) National Advertising Program | Currently $75 | Payable weekly on | (See Note 2) |
| Contribution | per week- | Monday via ACH for | |
| per | |||
| store. Can be | the previous week | ||
| increased but | |||
| any increased | |||
| amount will not | |||
| exceed 1% of | |||
| weekly Gross | |||
| Revenues | |||
| provided that | |||
| no increases | |||
| will occur in | |||
| the first | |||
| year | |||
| of | |||
| the agreement. | |||
| Transfer of Franchise | 50% of the | Before transfer. | Either you or the |
| then current | transferee pays | ||
| Initial | this fee to us. | ||
| Franchise Fee, | |||
| subject to a |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must pay a transfer fee. This fee is equal to 50% of the then-current Initial Franchise Fee, but is subject to a minimum payment of $24,750. This fee must be paid before the transfer takes place.
The fee can be paid by either the franchisee or the person to whom the franchise is being transferred. This is a fairly standard practice in franchising, as transfer fees compensate the franchisor for their time and expenses in approving the transfer and training the new franchisee.
It is important to note that the transfer fee is subject to change, as it is based on the then-current Initial Franchise Fee. Therefore, a prospective Closet Storage Concepts franchisee should inquire about the current Initial Franchise Fee and the potential transfer fee before signing a franchise agreement.