Under what circumstances can Closet Storage Concepts operate the Franchised Business?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
e Offer**
Closet & Storage Concepts businesses operate locations under the mark Closet & Storage Concepts® and other marks which we may implement. If you purchase a Closet & Storage Concepts franchise, you will design, market, construct and install custom storage spaces including in closets and garages in customer's homes (the "Franchised Business"). These custom storage design systems will be designed and installed to fit certain available styles and to meet particular customer preferences, needs and decors. Depending upon the level of your investment you will either manufacture the custom storage design systems or purchase the manufactured products from other companies or other Closet & Storage Concepts franchisees. You may operate a retail showroom in connection with the custom storage space business. In addition, as a Closet & Storage Concepts franchisee, you will sell accessories related to custom storage space distributed under the Closet & Storage Concepts name and logo. These accessories may be manufactured by us or third party suppliers that we designate. The related accessories include various types of doors, closet hangers, tie and belt racks, closet rods, shoe keepers, garment racks, baskets and other related accessories. In certain circumstances, if we feel demand requires it, we may allow you to operate the Franchised Business out of more than one (1) location under your existing franchise agreement within your granted Territory.
Applicable Regulations
If required by state or local law, you must obtain your own contractor's license or any other license or registration necessary to conduct business including zoning and business operation permits and registration of salespeople selling to residential consumers. You must not begin to conduct the Franchised Business until all of these licenses have been obtained. There may be other specific laws in your state or municipality that apply to the Franchised Business relating to labor, health and safety, construction licensing, zoning, privacy or other matters. You and your advisors should examine these laws before entering into the Franchise Agreement. You must investigate, keep informed of and comply with these laws.
Competition
The market for the products and services sold is rapidly developing, includes all age groups, economic levels, geographic areas, and includes both retail and commercial sales potential. You will compete with other businesses selling similar products and services, including retail and non-retail operations, department stores, furniture stores, or specialty stores that sell our type of
products, including custom and modular closet and storage space design and installation services and other products that utilize the concepts of vertical storage and space-saving systems. Our marketing efforts are guided towards certain economic demographics and some areas of the country can experience seasonal sales trends.
ITEM 2 - BUSINESS EXPERIENCE
President, Secretary and Sole Director: Robert Lewis
Mr. Lewis is our founder. Since we commenced the business of designing, marketing, constructing and installing residential and commercial storage space in 1989, through the present, Mr. Lewis has been our President, Secretary and sole Director.
Chief Financial Officer: Ed Gaubert
Mr.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD pages 43–44)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, a franchisee is granted the right to establish and operate one Closet Storage Concepts business using the Closet Storage Concepts System and Proprietary Marks, as outlined in the Franchise Agreement. The franchisee must use the Proprietary Marks and participate in promotional, advertising, and marketing programs. They also gain access to proprietary trade secrets, marketing, and business expertise.
The franchisee's ability to operate the Franchised Business is contingent upon obtaining all required state and local licenses, including contractor's licenses, business operation permits, and sales registrations. Operation of the business is prohibited until these licenses are secured. The franchisee is responsible for understanding and complying with all applicable laws related to labor, health and safety, construction licensing, zoning, and privacy.
Closet Storage Concepts may allow a franchisee to operate the Franchised Business from more than one location within the granted territory if demand justifies it. This is subject to the terms and conditions of the Franchise Agreement. The franchisee may also be permitted to operate a satellite location within the granted territory if Franchisor determines that demand justifies it. The franchisor also grants the franchisee the exclusive right to operate the Closet Storage Concepts business within the territory, except as otherwise provided in the agreement or if inconsistent with federal or state law.