Who is responsible for the administration of an advertising cooperative for Closet Storage Concepts franchisees?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
The cooperative members will be responsible for the administration of their respective advertising cooperative, as stated in the bylaws Franchisor approves.
The by-laws and governing agreements will be made available for review by the cooperative's franchisee members.
Franchisor may require a cooperative to prepare annual or periodic financial statements for review.
Each cooperative will maintain its own funds; however, Franchisor has the right to review the cooperative's finances.
Individual franchised businesses may not benefit directly or proportionately to their contribution to the Cooperative.
Franchisor reserves the right to approve all of a cooperative's marketing programs and advertising materials.
On 30 days written notice to affected franchisees, Franchisor may terminate or suspend a cooperative's program or operations.
Franchisor may form, change, dissolve or merge any advertising cooperative.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, if an advertising cooperative is formed, the cooperative members themselves will be responsible for its administration. This responsibility is outlined in the bylaws that Closet Storage Concepts approves. The by-laws and governing agreements will be accessible for review by the cooperative's franchisee members.
While the franchisees manage the cooperative, Closet Storage Concepts retains certain rights and oversight. Closet Storage Concepts reserves the right to approve all of the cooperative's marketing programs and advertising materials. They can also request the cooperative to prepare annual or periodic financial statements for review. Although each cooperative maintains its own funds, Closet Storage Concepts has the right to review the cooperative's finances.
Closet Storage Concepts also has the power to impact the cooperative's existence, as they may form, change, dissolve, or merge any advertising cooperative. Furthermore, Closet Storage Concepts can terminate or suspend a cooperative's program or operations with 30 days' written notice to the affected franchisees. It's also important to note that individual franchised businesses may not benefit directly or proportionately to their contribution to the Cooperative.