What are 'Remodeling Requirements' for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
ubject to a minimum of $12,375.
- 2.3 Royalties after Renewal.Upon renewal, the royalties payable to Franchisor shall be the same as the royalties provided in the standard franchise agreements being used by Franchisor as of the Renewal Date.
- 2.4 Conditions for Renewal Option.Franchisee shall have the right to exercise the renewal option referred to in Section 2.2 above provided that all of the following conditions have been satisfied:
- 2.4.1 Franchisee shall repair or replace, at Franchisee's cost and expense, equipment (including electronic cash register or computer hardware or software systems), signs, interior and exterior decor items, fixtures, or furnishings, supplies and other products and materials required for the operation of the Closet & Storage Concepts business as Franchisor may reasonably require and shall obtain, at Franchisee's cost and expense, any new or additional equipment, fixtures, supplies and other products and materials which may be reasonably required by Franchisor for Franchisee to offer and sell new products and services from the Closet & Storage Concepts business and shall otherwise modernize the business' premises, equipment (including electronic cash register or computer hardware and software systems), signs, interior and exterior decor items, fixtures, furnishings and supplies and other products and materials required for the operation of the Closet & Storage Concepts business as reasonably required by Franchisor to reflect the then current standards and image of the System as contained in the Operations Manual or otherwise provided in writing by Franchisor; and
- 2.4.2. Franchisee shall present satisfactory evidence that Franchisee has the right to remain in possession of the premises at the Approved Location or obtain Franchisor's approval of a new site for the operation of the Approved Location for the duration of the renewal term of this Agreement.
- 2.4.3 Franchisee has executed a release of any and all claims against Franchisor and its parents, affiliates, and their equity owners, officers, directors, agents, employees, attorneys and accountants arising out of or related to this Agreement or any related agreement. The release shall contain language and be of the form chosen by Franchisor, except the release shall not release any liability specifically provided for by any applicable state statute regulating franchising. Our current form of release is attached to this Agreement as Exhibit "5".
- 2.4.4 All amounts to be paid by Franchisee to Franchisor and/or its affiliates are currently paid, and no default under this Agreement exists uncured five (5) days after the Franchisee has received written notice of any overdue amounts. Even if no such default exists, Franchisor may revoke said option and refuse to allow said renewal if, during the initial term of this Agreement, Franchisee has been in material default of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, franchisees are responsible for maintaining and updating their business premises to meet the franchisor's standards, particularly when renewing their franchise agreement. As part of the renewal conditions, franchisees must repair or replace equipment, signs, decor, fixtures, furnishings, supplies, and other materials as reasonably required by Closet Storage Concepts. They must also acquire any new or additional equipment, fixtures, supplies, and materials needed to offer new products and services.
Closet Storage Concepts requires franchisees to modernize their business's premises, equipment (including electronic cash register or computer hardware and software systems), signs, interior and exterior decor items, fixtures, furnishings and supplies and other products and materials required for the operation of the Closet & Storage Concepts business as reasonably required by Franchisor to reflect the then current standards and image of the System as contained in the Operations Manual or otherwise provided in writing by Franchisor. This ensures that the franchise reflects the current standards and image of the Closet Storage Concepts system, as detailed in the Operations Manual or other written communications from the franchisor.
Additionally, the FDD states that the Franchised Business must be properly maintained at all times, including periodic repainting of the exterior and interior and all maintenance and repairs to all fixtures, furnishings, uniforms, signs and equipment to keep and run the Franchised Business as directed by the Operations Manual and otherwise as Franchisor reasonably directs. This ongoing maintenance is crucial for upholding the brand's image and operational standards. Closet Storage Concepts also has the right to change the standards and specifications applicable to operation of the Franchised Business, including standards and specifications for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology and equipment, by written notice to Franchisee or through changes in the Operations Manual. Franchisees are responsible for accepting and implementing these changes at their own expense.
These requirements ensure uniformity and quality across all Closet Storage Concepts franchises, but they also represent a potentially significant ongoing investment for the franchisee. Franchisees need to budget for these periodic updates and changes to remain compliant with the franchise agreement and maintain the brand's standards. Prospective franchisees should carefully review the Operations Manual and communicate with existing franchisees to understand the typical costs and frequency of these remodeling and maintenance requirements.