Who are the parties involved in the Closet Storage Concepts Transfer Agreement?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, in the event of a franchise transfer, the parties involved in the transfer agreement are the Franchisor, the Franchisee, and the Transferee. The franchisee acknowledges and agrees that the post-termination provisions of the Franchise Agreement, including noncompetition provisions, will remain in effect even after the franchise is transferred.

For a transfer to proceed, the franchisee must provide the franchisor 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 adequate financial resources. The transferee cannot be involved in a business that competes with Closet Storage Concepts, unless they are an existing franchisee.

Furthermore, the transferee may be required to execute the then-current Franchise Agreement, at Closet Storage Concepts' option. Either the franchisee or the transferee must pay Closet Storage Concepts a transfer fee equal to 50% of the current Initial Franchise Fee, with a minimum of $24,750. The transferee and their manager must also complete Closet Storage Concepts' training program at their own expense. Finally, the transferee must demonstrate that they have received approval from the landlord to take over the lease of the franchised business.