What is the minimum weekly royalty fee that a Closet Storage Concepts franchisee must pay?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
livery of this Agreement by Franchisor. Except as herein expressly provided, said Initial Franchise Fee shall not be refunded, in whole or in part, upon any termination of this Agreement nor under any other circumstances whatsoever.
3.3 Royalty Fee.
3.3.1 Royalty Based on Gross Revenue. Franchisee agrees to pay to Franchisor in accordance with Section 3.3.3, during the term of thi
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, franchisees must pay a royalty fee equal to 5% of their weekly gross revenues. However, there is a minimum weekly royalty payment required. Specifically, a Closet Storage Concepts franchisee must pay a minimum of $125 per week in royalty fees.
The royalty fee is calculated based on the aggregated gross revenues of all Closet Storage Concepts locations within a single territory operated by the same franchisee. This means that if a franchisee operates multiple locations within the same territory, their total gross revenue from all locations is used to calculate the 5% royalty fee, ensuring it meets or exceeds the $125 minimum.
Franchisees are required to participate in Closet Storage Concepts' electronic funds transfer program for royalty payments. These payments are automatically deducted from the franchisee's bank account weekly. The weekly royalty payment is due and deducted each Monday for the receipts of the preceding week, or on another day that Closet Storage Concepts mandates. This system ensures timely and consistent royalty payments to Closet Storage Concepts.