Does the Closet Storage Concepts Transfer Agreement specify the term of the transferred franchise?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the franchisee acknowledges and agrees that the post-termination provisions of the agreement, including non-competition provisions, will continue even after the franchise is transferred. To complete the transfer, Closet Storage Concepts, the franchisee, and the new transferee must enter into a transfer agreement that Closet Storage Concepts approves.

To proceed with a transfer, the franchisee must provide Closet Storage Concepts with a copy of the executed purchase agreement and all related documents. The transferee must also agree to take on all of the franchisee's obligations under the original agreement. The transferee needs to meet Closet Storage Concepts' standards for management and business practices, demonstrating good character, a solid business reputation, a satisfactory credit rating, and the necessary aptitude and financial resources to fulfill the agreement's requirements.

The transferee may be an existing Closet Storage Concepts franchisee but cannot be involved in a business that competes with Closet Storage Concepts. The transferee might need to execute Closet Storage Concepts' current Franchise Agreement, depending on Closet Storage Concepts' decision. Also, either the franchisee or the transferee must pay Closet Storage Concepts a transfer fee equal to 50% of the current initial franchise fee, with a minimum of $24,750. The transferee and their manager must also complete Closet Storage Concepts' training program at their own expense and within the timeframe that Closet Storage Concepts specifies. The FDD does not specify the term of the transferred franchise.