To whom do all the provisions of the Closet Storage Concepts Franchise Agreement apply?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor is Closets Unlimited of New Jersey, Inc., a New Jersey corporation. To simplify the language in this Disclosure Document, Closets Unlimited of New Jersey, Inc., will be referred to as "we" or "us". "You" means the individual or individuals or corporation, partnership or limited liability company buying the franchise. If you are a business entity, each of the following individuals must sign our Guaranty: (i) each of your shareholders if you are a corporation; (ii) each of your partners if you are a general partnership; or (iii) each of your members and managers if you are a limited liability company. All of the provisions of our Franchise Agreement (a copy of which is attached as Exhibit B to this Disclosure Document) will apply to you and to each individual who signs the Guaranty.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the provisions of the Franchise Agreement apply to the franchisee and to each individual who signs the Guaranty. The franchisor is Closets Unlimited of New Jersey, Inc. and is referred to as "we" or "us" in the document. The franchisee is referred to as "you", whether an individual, individuals, corporation, partnership, or limited liability company.
If the franchisee is a business entity, the following individuals must sign a Guaranty: each shareholder if the franchisee is a corporation; each partner if a general partnership; or each member and manager if a limited liability company. By signing the Guaranty, these individuals also become subject to the provisions of the Closet Storage Concepts Franchise Agreement.
This means that not only is the franchisee bound by the agreement, but also specific individuals associated with the franchisee's business entity are held personally responsible. This is a common practice in franchising to ensure the franchisor has recourse if the franchisee, especially a business entity, fails to meet its obligations under the agreement.