CLOSET FACTORY

Item 7 lays out the financial entry: a $58,500 franchise fee within a $392,500-$663,500 total investment, covering factory setups, retail space, and inventory for turnkey custom closet operations. Ongoing fees hit 6.75% royalty (or $975 weekly minimum), 15% brand fund, plus $95/month for ClosetWare software—positioning it mid-range for home improvement plays. Item 19 shines brightly: average gross revenue clocks $6,097,058 across units, with median at $4,618,860, suggesting top performers crush it in affluent residential markets hungry for personalized storage. Subtract fees and ops costs (not detailed), and EBITDA could approach 15-20% for strong locations, making it a revenue powerhouse if you nail design and install execution.

System vitality screams stability: 86 franchised plus 6 corporate spots, up 10% from 78 in 2023, with just 1 termination, 4 transfers, and 5 projected new units signaling low churn. SBA stats bolster confidence—27 loans averaging $722,789, default rate a mere 3.7%—proving banks back it. For buyers, probe Item 20 for unit-level sales variance, validate local demand via comps like California Closets, and audit supply chain logistics given manufacturing demands; this isn't plug-and-play but rewards ops pros in growing suburbs.