Does Closet Storage Concepts require a transferee to execute the current Franchise Agreement?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, whether a transferee is required to execute the then-current Franchise Agreement is at the discretion of Closet Storage Concepts. Specifically, the FDD states that the transferee has executed Closet Storage Concepts' then-current Franchise Agreement, at Closet Storage Concepts' option.

This means that if a franchisee sells their Closet Storage Concepts franchise to a new owner (the transferee), Closet Storage Concepts has the option to require the new owner to sign the franchise agreement that is in effect at the time of the transfer, which may differ from the original agreement signed by the selling franchisee.

This clause protects Closet Storage Concepts by allowing them to update their franchise agreement with new terms and conditions for new owners, ensuring consistency and compliance with current standards. For a potential transferee, this could mean agreeing to different fees, obligations, or operational standards than those in place under the previous franchisee's agreement. It is important for both the franchisee and the transferee to understand the implications of this clause during a transfer.