Who is responsible for the administration of Closet Storage Concepts advertising cooperatives?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, if advertising cooperatives are established, the cooperative members themselves are responsible for administering their respective advertising cooperative. This is stipulated in the by-laws that Closet Storage Concepts approves. The by-laws and governing agreements will be accessible for review by the cooperative's franchisee members.

Closet Storage Concepts retains certain rights and controls over these cooperatives. They reserve the right to approve all of a cooperative's marketing programs and advertising materials. Additionally, Closet Storage Concepts has the authority to terminate or suspend a cooperative's program or operations with 30 days written notice to affected franchisees. They also reserve the right to form, change, dissolve, or merge any advertising cooperative.

While each cooperative maintains its own funds, Closet Storage Concepts retains the right to review the cooperative's finances if they choose. However, a franchisee's business may not directly or proportionately benefit from its contribution to the cooperative. Closet Storage Concepts also has the right to draft a franchisee's bank account for the advertising cooperative contribution and pass those funds on to the cooperative.