What is the name of the agreement used for transferring a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3.2.9 Franchisee acknowledges and agrees that the post-termination provisions of this Agreement including, without limitation, the noncompetition provisions, shall survive the transfer of the Franchise and Franchisor, Franchisee and the transferee enter into a transfer agreement in the form approved by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts FDD, when transferring a franchise, the franchisee, franchisor, and the transferee must enter into a transfer agreement in the form approved by Closet Storage Concepts.
Prior to the transfer, the franchisee must provide Closet Storage Concepts with a copy of the executed purchase agreement and all supporting documents. The transferee must also demonstrate that they meet Closet Storage Concepts' managerial and business standards and have the aptitude and financial resources to meet the obligations of the Franchise Agreement.
Additionally, the transferee may be required to execute Closet Storage Concepts' then-current Franchise Agreement, at Closet Storage Concepts' option. The franchisee or transferee must pay Closet Storage Concepts a transfer fee equal to 50% of the then-current Initial Franchise Fee, with a minimum of $24,750. The transferee and its manager must also complete Closet Storage Concepts' training program at their own expense.