Will the royalty fees for a Closet Storage Concepts franchise change upon renewal?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may, from time to time, 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. Franchisor also may from time to time eliminate and introduce products or services or change the products or services. Franchisee shall cease offering products and services discontinued by Franchisor immediately, and immediately revise any changed products or services. Franchisee shall commence offering and selling any new products and services within 15 days of notification from Franchisor. Franchisee may incur an increased cost to comply with such changes, and Franchisee shall accept and implement such changes at its own expense as if they were part of the Closet & Storage Concepts System when this Agreement was executed, including discontinuing or modifying the use of or substituting any of the Proprietary Marks or computer software.
5.11 Authorized Services, Products, Supplies and Equipment.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the royalty fees franchisees pay may be subject to change upon renewal. While the document does not explicitly state that the royalty fee will change, it does state that Closet Storage Concepts may, from time to time, change the standards and specifications applicable to the operation of the franchised business. This includes standards and specifications for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment, by written notice to the franchisee or through changes in the Operations Manual.
Closet Storage Concepts also has the right to eliminate and introduce products or services or change the products or services. Franchisees must cease offering discontinued products and services immediately and revise any changed products or services. They must also commence offering and selling any new products and services within 15 days of notification from Closet Storage Concepts.
These changes may result in increased costs for the franchisee, who is responsible for accepting and implementing such changes at their own expense as if they were part of the Closet & Storage Concepts System when the agreement was executed. This includes discontinuing or modifying the use of or substituting any of the Proprietary Marks or computer software. Therefore, while the royalty fee is currently 5% of all weekly Gross Revenues of the Franchised Business subject to a minimum of $125.00 per week, it is subject to change.