CLOSET & STORAGE CONCEPTS

Data Based On: Five representative franchised Closet & Storage Concepts locations operating as of December 31, 2024, meeting criteria: open for at least 1 year as of Dec 31, 2024; located in market with at least 1M people; operating for full 12 months of 2024; operating from dedicated retail showroom.

* Average Gross Profit calculated as Average Gross Revenue ($2,494,080) - Average Cost of Goods Sold ($665,079) = $1829001. Best guess profit high is calculated as Average Gross Revenue ($2,494,080) minus the sum of known average operational expenses (Cost of Goods Sold: $665,079, Advertising Spending: $65,138, Rent Expense: $104,717, Payroll Expense: $906,185). Total known operational expenses = $1741119. Profit before unlisted expenses and owner compensation = $2,494,080 - $1,741,119 = $752961. Best guess profit low is estimated by subtracting additional assumed franchise-related expenses from the high estimate. Assumed additional expenses include 8% of gross revenue for royalties ($199526), 2% for marketing fund ($49882), and 5% for other general and administrative costs ($124704). Total assumed additional expenses = $374112. Best guess profit low = $752961 - $374112 = $378849. Owner compensation is noted as not included in Payroll Expense, thus the profit figures should be considered before owner's draw/salary.