Who is responsible for paying the Closet Storage Concepts franchise transfer fee?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 5% of Gross | Payable on each | (See Note 1) |
| Revenues | Monday via ACH for | ||
| subject to a | the week ending the | ||
| minimum of | immediately prior | ||
| $125 per week | Saturday. | ||
| (NAP) National Advertising Program | Currently $75 | Payable weekly on | (See Note 2) |
| Contribution | per week- | Monday via ACH for | |
| per | |||
| store. Can be | the previous week | ||
| increased but | |||
| any increased | |||
| amount will not | |||
| exceed 1% of | |||
| weekly Gross | |||
| Revenues | |||
| provided that | |||
| no increases | |||
| will occur in | |||
| the first | |||
| year | |||
| of | |||
| the agreement. | |||
| Transfer of Franchise | 50% of the | Before transfer. | Either you or the |
| then current | transferee pays | ||
| Initial | this fee to us. | ||
| Franchise Fee, | |||
| subject to a |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the responsibility for paying the franchise transfer fee can fall on either the franchisee (the seller) or the transferee (the buyer). The transfer fee is a notable expense that either party must account for when a franchise changes hands.
The transfer fee for a Closet Storage Concepts franchise is 50% of the then-current Initial Franchise Fee, but it is subject to a minimum of $24,750. This fee is due before the transfer of the franchise is completed.
This flexibility in payment responsibility is not uncommon in franchising, as the specifics are often negotiated between the seller and the buyer. Prospective franchisees should clarify who will bear this cost during transfer negotiations to avoid any surprises and to ensure a smooth transition.