What is the name of the advertising program described for Closet Storage Concepts franchisees?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
marketing materials and public relations development.
National Advertising Program
The National Advertising Program ("NAP") is administered for the common benefit of System franchisees. Under the Closet & Storage Concepts Franchise Agreement, we have the right to require you to contribute ($75) Seventy-Five Dollars per week (which can be increased to up to 1% of the weekly Gross Revenues, provided there will be no increase during the first year of the franchise agreement) to the Closet & Storage Concepts NAP. (Section 3.5 of the Franchise Agreement).
All franchisees will be required to contribute on the same basis. Our suppliers may be asked to contribute to the NAP on terms we negotiate. Neither we nor our affiliates have a contractual obligation to contribute to the NAP. We have the sole right to determine contributions and expenditures from the NAP, or any other advertising program, and sole authority to determine the selection of the advertising materials and programs.
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 advertising program administered for the common benefit of franchisees is called the National Advertising Program, or "NAP".
Under the Closet & Storage Concepts franchise agreement, Closet Storage Concepts has the right to require franchisees to contribute $75 per week to the NAP. This amount can be increased up to 1% of the weekly Gross Revenues, but there will be no increase during the first year of the franchise agreement. The NAP was not yet operative during the fiscal year ending December 31, 2024, and no amounts were collected or spent.
Closet Storage Concepts may also establish special promotional programs in which franchisees are required to participate. Franchisees must pay their share of the cost of developing and implementing the program, including common development, design, and advertising costs. Franchisees must also participate in all rebate programs and offer all discounts required by Closet Storage Concepts.