FranDB
CLOSET FACTORY

CLOSET FACTORY

Closet Factory franchises enable operators to market, design, manufacture, construct, install, repair, and service custom closets and storage systems for consumers, while also selling related products and services. The business operates under the franchisor's trademarks and standards, with franchisees running retail outlets that provide turnkey custom storage solutions. The primary target market is residential consumers seeking personalized home organization and storage improvements.

Since 1985Construction & Home ImprovementLos Angeles, CAwww.closetfactory.com
Item 19 AvailableSBA Loan Data

Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.

Overview

Investment
$392,500 - $663,500
Franchise Fee
$58,500
Locations
86

Financial Requirements

Franchise Fee$58,500
Initial Investment Range$392,500 - $663,500
Royalty Rate6.75%
Brand Fund15.00%
Fixed Monthly Fees$95 - $95

6.75% royalty (greater of % or $975/wk min) + 15% marketing fund + $95/mo ClosetWare license

Franchise Stats

Franchise Locations86
Corporate Locations6
States Operating35
Franchising Since1985
FDD Year2025

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$6,097,058
Median Gross Revenue
$4,618,860
Top Quartile Revenue
$13,567,654
Bottom Quartile Revenue
$1,244,968

Data Based On: 47 Franchised Closet Factory Businesses open more than one year on December 31, 2024.

* Financial performance data for 2024 was extracted from '2024 TABLE 1' and '2024 TABLE 3'. 'Average Gross Revenue' ($6,097,058) and 'Median Gross Revenue' ($4,618,860) were taken directly from '2024 TABLE 1'. 'Revenue Top Quartile' ($13,567,654) and 'Revenue Bottom Quartile' ($1,244,968) were sourced as the 'Average Sales Data' for the First and Fourth Quartiles respectively, from '2024 TABLE 3'. The total number of units (47) and their distribution across quartiles (12 units for First, Second, and Third Quartiles each; 11 units for the Fourth Quartile) were determined by cross-referencing '2024 TABLE 1' and the detailed individual business listings in '2024 TABLE 2' across pages 2 and 3. No explicit profit, net income, net profit, or EBITDA figures, or sufficient expense data to estimate them, were provided in the document.

Extracted Item 19 Section

How CLOSET FACTORY Compares to Other Home Improvement Franchises

Key Insights

  • Higher investment than 100% of Home Improvement franchises
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
CLOSET FACTORY
Current
$393K - $664K$59K6.8%86
BUDGET BLINDS$101K - $211K$20K3.5%1,366
Koala Insulation$189K - $234K$50K6.5%395
CERTA PROPAINTERS$171K - $321K$65KN/A303
FCI$184K - $249K$55K5.0%288
That 1 Painter$113K - $189K$59K6.0%265
Home Improvement Average
63 franchises
$140K - $247K$52K6.2%-

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 63 Home Improvement franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States by Outlet Count
1CA
10
2TX
7
3NJ
6
4FL
6
5NY
5
6VA
4
7IL
4
8MA
3
9PA
3
10MI
3
11SC
3
12TN
2
13GA
2
14NC
2
15CO
2

+19 more states

SBA Loan History

Historical SBA 7(a) loan data for CLOSET FACTORY franchisees (2010 - 2025)

Total Loans
27
Average Loan Amount
$722,789
Total Loan Volume
$19,515,300
Default Rate
3.7%

Loans by Year

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
1
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
0
System Transfers
4
Sold to Franchisees
0
Projected New Franchises
5

Frequently Asked Questions

How much does it cost to open a CLOSET FACTORY franchise?

The total initial investment to open a CLOSET FACTORY franchise ranges from $392,500 to $663,500. This includes a franchise fee of $58,500. Ongoing royalty fees are 6.8% of gross sales.

How much revenue does a CLOSET FACTORY franchise make?

According to the 2025 FDD, the average gross revenue for a CLOSET FACTORY franchise is $6,097,058. The median revenue is $4,618,860.

How many CLOSET FACTORY franchise locations are there?

As of the 2025 FDD, CLOSET FACTORY has 86 franchise locations. The company has been franchising since 1985.

Can you get an SBA loan for a CLOSET FACTORY franchise?

Yes, SBA loans are available for CLOSET FACTORY franchises. Historical data shows 27 SBA 7(a) loans have been approved for CLOSET FACTORY franchisees, with an average loan amount of $722,789. The historical default rate is 3.7%.

Is CLOSET FACTORY a good franchise to buy?

CLOSET FACTORY shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Interested in CLOSET FACTORY?

Talk to a franchise advisor to get personalized guidance and learn if CLOSET FACTORY is the right fit for you.

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