What is the purpose of the 'WHEREAS' clauses in the Closet Storage Concepts Transfer Agreement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Disclosure Questionnaire Statement of Ownership Interest Consent to Transfer Assignment and Assumption Agreement Telephone, Internet Websites and Listing Agreement Electronic Transfer Authorization | | |
CLOSET & STORAGE CONCEPTS FRANCHISE AGREEMENT
THIS AGREEMENT is entered into and made by and between CLOSETS UNLIMITED OF NEW JERSEY, INC., a New Jersey corporation with its principal business address at 436 Commerce Lane, Suite D, West Berlin, "Effective Date"). NJ 08091 ("Franchisor") and ("Franchisee") on the date this Agreement is executed by Franchisor below (the with a principal address at
BACKGROUND
- A. Franchisor and/or its parents, predecessor, equity owners or affiliates, through the expenditure of considerable money, time and effort, has developed a business system (the "Closet & Storage Concepts System" or the "System") for the design, marketing, construction and installation of customized residential and commercial storage space including closets, garages, and other storage areas for consumers and the selling of related retail accessories in a retail showroom, which includes: high standards of services, products, know-how and trade secrets; uniform specifications of products and services, equipment and fixtures; sales techniques, and merchandising, marketing, advertising, and management systems; quality and inventory control procedures; and procedures for operation and management of Closet & Storage Concepts businesses pursuant to the Operations Manual (as hereinafter defined) provided by Franchisor and modified from time to time and other standards and specifications Franchisor otherwise provides.
- B. The System is identified by various trade names, trademarks and service marks used by Franchisor and its franchisees including, without limitation, the service marks "Closet & Storage Concepts®", "Conquer Closet Clutter®", "Closet & Storage Concepts (and Design)®", "Getting Organized is Always in Style®," "Getting Organized is Always in Style!," "Got Space?" and other identifying marks and symbols that Franchisor uses now or may later use as part of the System (the "Proprietary Marks"). The rights to all the Proprietary Marks shall be owned exclusively by Franchisor or its parents or affiliates.
- C. Franchisor is engaged in the business of granting franchises to qualified individuals and business entities to use the System to operate Closet & Storage Concepts franchises.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Closet Storage Concepts Franchise Disclosure Document, the "WHEREAS" clauses, also known as the background section, in the franchise agreement serve to establish the foundation and context for the agreement. These clauses outline the Closet & Storage Concepts System, which involves the design, marketing, construction, and installation of customized storage spaces for residential and commercial clients, along with the sale of related retail accessories. It highlights the considerable investment of money, time, and effort by Closet Storage Concepts to develop this system.
Furthermore, the "WHEREAS" clauses identify the various trade names, trademarks, and service marks associated with the Closet & Storage Concepts brand, including marks like "Closet & Storage Concepts®" and "Conquer Closet Clutter®." It clarifies that the rights to these proprietary marks are exclusively owned by Closet Storage Concepts or its affiliates. This section also states that Closet Storage Concepts grants franchises to qualified individuals and business entities, allowing them to use the Closet & Storage Concepts System to operate their own franchises.
For a prospective franchisee, understanding these clauses is crucial as they define the scope and nature of the franchise being offered. It sets the stage for the franchisee's rights and obligations, emphasizing the importance of adhering to the established Closet & Storage Concepts System and protecting the brand's intellectual property. These clauses also highlight the franchisor's role in providing ongoing support and guidance to ensure the consistent operation and quality of all Closet Storage Concepts franchises.