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Closet Factory

Information based on 2024 FDD
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Brand Highlights
  • Founded in 1983
  • Franchising Since 1985
  • 78 US Franchises
  • $344,500 - $611,500 Investment Range
  • $5,399,421 Average Gross Revenue
  • 6.75% Royalty Fee
  • $58,500 Franchise Fee
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Brand Description

Closet Factory has been transforming living spaces with custom storage solutions since 1983, establishing itself as a leader in the home organization industry. Their business model focuses on delivering personalized, high-quality storage solutions for every room in the home, from custom closets and garages to home offices and pantries.

What sets Closet Factory apart is their commitment to a consultative, design-first approach. Their franchise owners work with professional designers who meet with customers in their homes, creating custom solutions tailored to each client's specific needs and space constraints. This personalized service, combined with in-house manufacturing capabilities, allows franchisees to deliver premium products with exceptional attention to detail.

The brand has built a strong reputation for excellence, as evidenced by consistently positive customer reviews highlighting their professional design services, quality installations, and outstanding customer service. Franchisees benefit from a proven business model that includes comprehensive training, proprietary design software, and established relationships with suppliers.

As a Closet Factory franchise owner, you'll tap into the growing home organization market while providing valuable solutions that help customers maximize their living spaces. The business model offers multiple revenue streams through various product offerings and serves both residential and commercial markets. With a focus on custom solutions and professional installation, Closet Factory franchisees can build a sustainable business while helping customers transform their homes and improve their daily lives.

DID YOU KNOW?

How much does it cost to start a franchise with Closet Factory?

$344,500
$611,500
Did you know that starting your own Closet Factory franchise - the custom storage solution business that transforms cluttered homes into organized havens - requires a total investment between $344,500 and $611,500, which includes the $58,500 franchise fee plus all the equipment, training, and startup capital needed to launch your profitable home organization empire?
Financial Summary
Franchise Fee
$58,500
Investment Range
$344,500 - $611,500
Investment Midpoint
$478,000
Minimum Cash Required
$344,500
Royalty Fees
6.75%
Brand Fund
15%
Brand Bragging Rights
40+ years industry leadership experience
Custom 3D design consultation process
Employee-based trained installation teams
Premium whole-house organization systems
Established showroom and consultation model
Proven custom manufacturing business model
Financial Analysis
Closet Factory requires a $344,500-$611,500 investment, positioning it as a premium franchise opportunity significantly above the Other Home Services sub-sector average of $111,770-$223,008. This higher investment reflects the custom manufacturing nature and sophisticated design technology required for personalized organization systems.

The home organization sector benefits from strong consumer spending trends on home improvement and lifestyle enhancement, accelerated by remote work patterns increasing focus on functional home spaces. The custom closet market serves affluent homeowners seeking premium solutions, providing recession-resistant characteristics through targeting discretionary spending in established neighborhoods.

With 84 units and 40+ years of operation since 1983, Closet Factory demonstrates substantial system maturity and operational refinement. This established presence indicates proven business model validation, though the moderate unit count suggests selective growth focused on market quality over rapid expansion.

The reported gross revenue of $5,399,421 substantially exceeds sub-sector averages of $739,341, reflecting the premium positioning and higher transaction values inherent in custom manufacturing. However, this business model requires significant operational complexity including design consultation, custom manufacturing coordination, and skilled installation teams.

Ideal investors should possess substantial liquid capital given the premium investment level, along with business management experience and comfort with consultative sales processes. The model suits markets with established homeowner demographics and discretionary spending capacity. Prospective franchisees must thoroughly review the FDD and conduct comprehensive due diligence given the significant capital commitment required.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like Closet Factory. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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FranFund

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CRF USA

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First Bank of the Lake

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Golden Capital Solutions

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Location Analysis
Closet Factory demonstrates strong market presence across multiple states with widespread coverage, showing particular concentration in coastal and high-population regions. The franchise maintains notable presence in California and North Carolina, with significant operations in Florida, Georgia, and New York, indicating successful penetration in both affluent coastal markets and growing southeastern regions. The franchise's exceptional 4.76 average rating across thousands of customer reviews suggests consistent service quality across diverse markets.

The current geographic distribution reveals strategic positioning in affluent suburban areas with high homeownership rates and strong household incomes. Key success factors include proximity to upscale residential developments and home improvement districts. Significant expansion opportunities exist in the Midwest and Mountain regions, where current presence is limited despite strong housing markets.

Ideal locations for new franchises typically include affluent suburbs of major metropolitan areas with median home values above $300,000 and strong new housing development activity. The franchise performs particularly well in markets with high concentrations of professional households and active real estate markets. Prospective franchisees should focus on areas with robust home improvement spending and growing population centers, particularly in underserved states with strong housing markets.
Total US Locations84
Open Franchises78
Corporate Locations6
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind Closet Factory. Learn about the experience and expertise of the executive team guiding Closet Factory's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving Closet Factory. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review Closet Factory's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about Closet Factory's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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