What payments must be made before a Closet Storage Concepts franchisee can open their business?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
emises, although we reserve the right to do so. (Franchise Agreement – Section 1.3)
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- Upon approval by us of the showroom site which you select, we will provide you with advice, guidance and general layout (but not construction) plans for the showroom. In constructing your showroom you must comply with all local building codes, ordinances and requirements and obtain all required building, health and sign permits and licenses. You pay all costs for construction or remodeling the showroom. (Franchise Agreement - Sections 4.1 and 4.2).
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- Provide you with a list of suppliers and written specifications for all equipment, goods, products and supplies you will need in connection with your franchised business and provide you with an opening inventory of franchise products, design layouts and supplies. We do not construct, remodel or decorate the showroom for you. We reserve the right to set maximum and minimum prices for products and services. (Franchise Agreement - Sections 1.05 and 4.01).
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- Provide you with you access to our operating system which consists of digitally stored written materials. These materials, containing mandatory and suggested formats, standards, methods, specifications and procedures prescribed by us and amended periodically, are housed and modified by us via our corporate intranet site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–38)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts FDD, franchisees incur several pre-opening expenses. Franchisees are responsible for all costs associated with constructing or remodeling their showroom to meet local building codes and the franchisor's layout plans. They also bear the costs for obtaining necessary building, health, and sign permits and licenses.
Closet Storage Concepts provides initial training for up to three people at no charge, but franchisees must cover the travel and living expenses for themselves and their employees during training. If refresher or supplemental training is required, franchisees must pay tuition fees and cover all travel and living expenses for attendees.
In summary, before opening, a Closet Storage Concepts franchisee should anticipate expenses related to showroom construction, permits, initial inventory, and travel and living costs for the initial training program. These costs can vary significantly depending on location, showroom size, and the number of employees attending training.