Can Closet Storage Concepts unilaterally modify its standards and specifications?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
ge its then-current fee for use of e-mail addresses/mailboxes.
- 5.9 Inspection. During normal business hours and without prior notice, Franchisor or its
representatives or agents shall have the right to inspect Franchisee's records, interview Franchisee's customers and observe the manner in which Franchisee operates the Franchised Business.
5.10 Changes to the System. 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.
- 5.11.1 Franchisee shall offer and sell all services, merchandise and products that Franchisor prescribes and only those services, merchandise and products that Franchisor prescribes. Franchisee shall order the products from any manufacturer, supplier or other Closet and Storage Concepts franchisee recommended by or approved by Franchisor in writing. Franchisee shall comply with all rules and regulations prescribed by federal, state and local agencies. Subject to the requirements of Section 5.2, Franchisee shall have the right to suggest new products, services or other developments to Franchisor for use in Franchisee's and other Closet & Storage Concepts System businesses.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, Closet Storage Concepts has the authority to modify the standards and specifications applicable to the operation of the franchised business. These changes can include standards and specifications for products, services, computer software, inventory, supplies, signs, fixtures, furnishings, technology, and equipment.
The modifications can be communicated to the franchisee through written notice or changes in the Operations Manual. Closet Storage Concepts also has the right to eliminate or introduce products or services, and franchisees are required to cease offering discontinued products immediately and revise any changed products or services. Franchisees must start offering and selling any new products and services within 15 days of notification from Closet Storage Concepts.
While franchisees may incur increased costs to comply with these changes, they are obligated to accept and implement them 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 any Proprietary Marks or computer software. Closet Storage Concepts also has the exclusive right to vary the products, services, or merchandise offered by the franchised business.
Closet Storage Concepts also reserves the right to vary not only the products, services, and merchandise but other standards for any System franchisee based on the customs or circumstances of a particular site or location, density of population, business potential, population of the trade area, existing business practices, or any condition which Closet Storage Concepts deems important to the operation of that franchisee's business.