What regular fees are still owed when Closet Storage Concepts manages the business?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
livery of this Agreement by Franchisor. Except as herein expressly provided, said Initial Franchise Fee shall not be refunded, in whole or in part, upon any termination of this Agreement nor under any other circumstances whatsoever.
3.3 Royalty Fee.
3.3.1 Royalty Based on Gross Revenue. Franchisee agrees to pay to Franchisor in accordance with Section 3.3.3, during the term of this A
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the document does not specify circumstances where Closet Storage Concepts manages the franchisee's business. Therefore, it is not possible to determine from the provided excerpts what fees would be owed in such a situation. The FDD does outline the standard royalty fees franchisees must pay.
Item 3.3.1 states that franchisees must pay a royalty fee equal to 5% of all weekly Gross Revenues, with a minimum of $125.00 per week. The Gross Revenues of all of a franchisee's locations within a single Territory are combined to calculate the Royalty Fee.
To understand what fees are owed if Closet Storage Concepts were to manage the business, a prospective franchisee should ask the franchisor directly. This is an important question to clarify during the due diligence process.