Clozetivity

Financials paint a relatively accessible entry: Item 7 pegs total investment at $81,500-$157,500, including a $39,000 franchise fee, with startup costs skewed low thanks to on-site service model—no massive storefront needed. Ongoing fees include an escalating fixed monthly royalty ($400 in months 1-6, ramping to $2,000+ by month 37), a 2% brand fund (currently waived), and $159/month software charge. Item 19 shines brightly with average gross revenue of $512,116 across disclosed units, suggesting solid top-line potential in a high-margin service category where franchisees handle sales, design, and installs directly at customer sites.

System vitality shows promise yet volatility: locations surged 111% from 27 in 2022 to 57 in 2023, with 20 new units projected, signaling aggressive expansion in the home improvement arena against local contractors and big-box retailers. However, 9 terminations signal early churn, and litigation—mostly fraudulent inducement claims by ex-franchisees of Clozetivity and sister brands—warrants scrutiny in Items 3 and 20. For buyers eyeing semi-absentee potential in a $10B+ organization market, these metrics mean vetting territory exclusivity and support closely; the revenue punch could deliver ROI, but scaling risks loom for this young network.