Does the Closet Storage Concepts Transfer Agreement require signatures from all parties involved?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Agreement, at Franchisor's option;
- 7.3.2.7 Franchisee or transferee has paid Franchisor a transfer fee equal to 50% of the then current Initial Franchise Fee, subject to a minimum of $24,750;
- 7.3.2.8 The transferee and its manager shall complete Franchisor's training program to Franchisor's satisfaction at the transferee's own expense within the time frame set forth by Franchisor; and
- 7.3.2.9 Franchisee acknowledges and agrees that the post-termination provisions of this Agreement including, without limitation, the noncompetition provisions, shall survive the transfer of the Franchise and Franchisor, Franchisee and the transferee enter into a transfer agreement in the form approved by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, for a franchise transfer to be completed, Closet Storage Concepts, the franchisee, and the transferee must enter into a transfer agreement that is in a form approved by Closet Storage Concepts.
Specifically, the FDD states that the franchisee must provide Closet Storage Concepts with a copy of the executed purchase agreement relating to the proposed transfer, including the transferee's assumption of all of the franchisee's obligations under the existing Franchise Agreement.
This implies that all parties involved, including the franchisor, franchisee, and transferee, must sign the transfer agreement to ensure a smooth and legally sound transition of the Closet Storage Concepts franchise.