Can Closet Storage Concepts withhold approval of any supplier for any reason?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may receive fees and other payments from suppliers and others in connection with Franchisee's purchases and may use the fees for Franchisor's own purposes.
Franchisor shall provide Franchisee a standard price list for items which it sells to franchisees, including a description of each item and applicable price or lease terms, prepayment discounts (if any) and shipping charges.
Franchisor reserves the right to withhold approval of any supplier for any reason.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, Closet Storage Concepts reserves the right to withhold approval of any supplier for any reason. This means that as a franchisee, you do not have the freedom to choose any supplier you want. Closet Storage Concepts has complete discretion over who you can and cannot use as a supplier.
This clause gives Closet Storage Concepts significant control over the supply chain and ensures uniformity across all franchise locations. While this may limit a franchisee's options, it also allows Closet Storage Concepts to maintain quality control and potentially negotiate better deals with suppliers due to the volume of purchases across the entire franchise system.
For a prospective franchisee, this means you should inquire about the approved supplier list and understand the pricing and quality of the products and services offered by those suppliers. It would be prudent to discuss with existing franchisees their experiences with the approved suppliers and whether they feel the system provides them with competitive pricing and sufficient options. It is important to note that Closet Storage Concepts may also receive fees and other payments from the approved suppliers based on franchisee purchases.