Must the weekly reports from a Closet Storage Concepts franchisee be filed timely?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
The royalty calculations shall be based on the weekly reports and/or statements signed by Franchisee in the form specified by Franchisor indicating all Gross Revenue (as defined in Section 3.3.2) of Franchisee during the applicable week, which must be submitted to Franchisor on or before the close of business on Monday of each week.
Such reports shall include all sales generated by Franchisee (including any sales from the Approved Location or otherwise) during the previous week, shall be complete, shall be filed timely and shall be signed by Franchisee or its designated manager.
If Franchisee fails to submit any weekly revenue report on a timely basis, Franchisor may estimate Gross Revenues and withdraw from Franchisee's operating account the amounts estimated to be due which will be reconciled when the required reports are received.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, franchisees must file weekly reports timely. These reports, which reconcile monthly gross revenue with weekly gross revenue and royalty payments, must include all sales generated during the previous week and be signed by the franchisee or their designated manager.
The weekly payments are due and deducted from the franchisee's bank account each Monday for the receipts of the preceding week, or on another day that Closet Storage Concepts mandates. The royalty calculations are based on these weekly reports, which must be submitted on or before the close of business each Monday.
If a Closet Storage Concepts franchisee fails to submit the weekly revenue report on time, Closet Storage Concepts has the right to estimate the gross revenues and withdraw the estimated amount due from the franchisee's operating account. This amount will then be reconciled once the required reports are received. This ensures that Closet Storage Concepts receives timely payments and maintains accurate financial records.