Under what condition can a Closet Storage Concepts franchisee terminate the agreement for cause?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must open the Franchised Business for business at the new location within 180 days of closing the original location.
If Franchisee fails to comply with the terms of this Section 1.3.4, Franchisor may terminate this Agreement
- 1.7 Acceptance of Relocation. If, within thirty (30) days after receipt of Franchisor's proposal of a new location, Franchisee gives to Franchisor written notice of acceptance of such proposal, and either enters into such tendered lease, sublease, or sale contract, or if none is tendered, agrees in writing to comply with any and all requirements prescribed by Franchisor relating to the lease of the Closet & Storage Concepts business premises and construction or alteration of improvements on the premises, then notwithstanding the termination right at Section 8.2.2 (r) of this Agreement, this Agreement shall continue for the remainder of the term and shall be deemed amended to refer to such new location. If Franchisee fails to comply with the provisions of this Section 1.7 within said thirty (30) day period, then Franchisor shall have the right to terminate this Agreement pursuant to Section 8.2.2 (r), and Franchisee shall have no further rights under or by virtue of Sections 1.6 through 1.7 of this Article.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Closet Storage Concepts franchisee does not have the right to terminate the agreement for cause. However, the franchisor, Closet Storage Concepts, can terminate the agreement with the franchisee under certain conditions.
According to the FDD, if a franchisee fails to open the franchised business at a new location within 180 days of closing the original location, Closet Storage Concepts has the right to terminate the agreement. Additionally, if the franchisee fails to comply with the provisions regarding relocation, Closet Storage Concepts has the right to terminate the agreement.
These stipulations highlight the importance of franchisees meeting specific operational and relocation requirements. Failing to meet these requirements can lead to termination of the franchise agreement by Closet Storage Concepts. A prospective franchisee should carefully review all obligations and conditions outlined in the franchise agreement to fully understand the circumstances under which Closet Storage Concepts can terminate the agreement.