What are the options for advertising materials for a Closet Storage Concepts franchisee?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisee shall comply with each of its advertising obligations provided in this Agreement notwithstanding the payment by other Closet & Storage Concepts System franchisees of greater or lesser advertising obligations or default of these obligations by any other franchisees.
3.7 Advertising Materials. Franchisee must either use materials furnished by Franchisor or develop its own materials to advertise for potential clients and customers. If Franchisee elects to develop its own advertising materials, Franchisee must do the following:
3.7.1 Provide Franchisor with a copy of all layouts (not prepared by Franchisor) that will run at least 30 days prior to their anticipated publication dates;
- 3.7.2 Obtain Franchisor's written consent for advertising layouts provided in 3.7.1 above;
3.7.3 Provide Franchisor, when requested to do so, with actual tearsheets and copies of invoices of advertising expenses actually incurred and paid.
3.7.4 Franchisor does not require Franchisee to join any advertising cooperative it may organize or develop, provided that it reserves the right to institute such requirement in the future. If a cooperative is formed, Franchisor will have the right to draft Franchisee's bank account for the advertising cooperative contribution and to pass those funds on to the respective cooperative. The cooperative members will be responsible for the administration of their respective advertising cooperative, as stated in the bylaws Franchisor approves. The by-laws and governing agreements will be made available for review by the cooperative's franchisee members. Franchisor may require a cooperative to prepare annual or periodic financial statements for review. Each cooperative will maintain its own funds;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, franchisees have the option to use advertising materials furnished by the franchisor or to develop their own. If a franchisee chooses to create their own advertising materials, they must provide Closet Storage Concepts with a copy of all layouts at least 30 days before their intended publication date. The franchisee must also obtain written consent from Closet Storage Concepts for these advertising layouts.
Closet Storage Concepts considers any website, including the Closet & Storage Concepts website, as advertising. Therefore, any website a franchisee develops or uses must adhere to the advertising terms and conditions outlined in the Franchise Agreement. This definition includes interactive electronic documents, home pages, and social networking sites like Facebook, LinkedIn, Instagram, TikTok, Pinterest, or Twitter.
Franchisees are required to spend a minimum amount on local advertising, set at the greater of 7% of their monthly Gross Revenues or $2,500 per month. Contributions to the National Advertising Program (NAP) can be counted toward this local advertising requirement. Franchisees must also provide tearsheets and copies of invoices for advertising expenses to Closet Storage Concepts upon request.