When is payment due for showroom displays purchased from Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
This is for showroom displays and some warehouse inventory, which can be sold as regular/sellable inventory at the appropriate time.
The amount of warehouse inventory may vary according to your distance from us and/or distribution points and the size of the warehouse facility available to you.
You may choose to build the displays yourself or purchase them from us.
If you construct the displays yourself you must still pay for the materials to construct the displays.
Payment is due upon receipt at your store/warehouse location.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, payment for showroom displays is due upon delivery to your store and receipt of invoice. The estimated initial investment for opening showroom displays ranges from $5,000 to $32,000. This cost covers showroom displays and some warehouse inventory, which can be sold as regular inventory later. Franchisees have the option to build the displays themselves or purchase them from Closet Storage Concepts. However, even if franchisees choose to build the displays, they are still responsible for paying for the materials.
This payment schedule is fairly standard in the franchise industry, as it ensures that Closet Storage Concepts is compensated promptly for the displays provided to the franchisee. The cost variation depends on factors like the size and complexity of the displays chosen.
Prospective franchisees should factor this expense and payment timeline into their initial budget and cash flow projections. It is important to clarify with Closet Storage Concepts whether the payment is due immediately upon delivery or if there is a short grace period after receiving the invoice. Understanding these payment terms is crucial for managing initial expenses effectively.