Who must provide a Certificate of Insurance to Closet Storage Concepts prior to closing?

The 2025 Closet Storage Concepts Franchise Disclosure Document states that if a franchisee engages in any construction, renovation, or build-out of the premises for the franchised business, either the franchisee or the franchisee's third-party contractor must have specific insurance policies in place for the duration of the project. These policies include Commercial General Liability insurance, Worker's Compensation and Employer's Liability insurance, and Builder's Risk insurance in an amount approved by Closet Storage Concepts.

This requirement ensures that Closet Storage Concepts is protected from potential liabilities arising from construction or renovation activities at the franchise location. It also ensures that workers are covered in case of accidents or injuries during the build-out phase. The franchisee needs to coordinate with their contractor to ensure that the appropriate insurance is in place and that Closet Storage Concepts approves the Builder's Risk insurance amount.

For a prospective Closet Storage Concepts franchisee, this means understanding the insurance obligations related to any construction or renovation work. If using a third-party contractor, the franchisee must verify that the contractor has the required insurance coverage. If the franchisee is managing the construction themselves, they must obtain the necessary insurance policies. Failure to comply with these insurance requirements could delay the opening of the franchise or result in a breach of the franchise agreement.