Closet Factory Franchise FDD, Costs & Fees (2025)

Closet Factory is a home organization franchise specializing in custom storage solutions that maximize space and enhance functionality.

Founded in 1983 by John La Barbera in Los Angeles, Closet Factory has become a leading name in the custom closet and home organization sector.

With its headquarters in Los Angeles, CA, the company began offering franchises in 1985 and has since grown its presence across the United States, granting franchisees exclusive territories in key metropolitan areas.

Closet Factory stands out with its business model that prioritizes innovation, elegance, and creative design. The company provides a wide array of customizable home organization solutions beyond closets, including offices, garages, and entertainment centers, creating numerous opportunities for repeat and referral business within each household.

The franchise system at Closet Factory is structured to be straightforward to implement and expand, with a focus on maximizing franchisee profitability.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $58,500
Site Location $24,000 - $52,000
Property Improvements $10,000 - $40,000
Equipment, Fixtures and Furniture $160,000 - $275,000
Vehicles (Deposit on lease) $10,000 - $15,000
Signage and Uniforms $2,000 - $6,000
Product and Supply Inventories $10,000 - $20,000
Grand Opening Marketing Program $30,000 - $55,000
Additional Funds - 3 months $40,000 - $90,000
TOTAL $344,500 - $611,500
Type of Expenditure Amount
Initial Franchise Fee $58,500
Site Location $24,000 - $52,000
Property Improvements $10,000 - $40,000
Equipment, Fixtures and Furniture $160,000 - $275,000
Vehicles (Deposit on lease) $10,000 - $15,000
Signage and Uniforms $2,000 - $6,000
Product and Supply Inventories $10,000 - $20,000
Grand Opening Marketing Program $30,000 - $55,000
Additional Funds - 3 months $40,000 - $90,000
TOTAL $344,500 - $611,500

Franchise Disclosure Document

Competitors

Below are some of

Closet Factory

key competitors in the

Furniture

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

78

New
+
13%
13%

$58,500

$345,000

$612,000

n.a.

$4,077,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Access the most comprehensive franchise database

For franchisees

Find the best franchises to invest into

For franchisors

Compare your brand to competitors

Upgrade to Pro to get access to:
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

See our plans

A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

Darren M.

Franchisee

Been waiting for years for this. All the most important franchises and their latest Franchise Documents to download. The team also updates the franchises very quickly.

Emily V.

Franchisee

Number of units

Training

Remedial Training The franchisor may provide remedial training or assistance to franchisees and their managerial staff if deemed necessary. This training is contingent upon the availability of the franchisor's personnel. Franchisees are responsible for covering any associated fees to offset the costs of this training, as well as all related expenses including transportation, lodging, meals, training materials, and wages.

Virtual Training, Assistance, and Inspections The franchisor may deliver parts of the initial training program, additional or refresher training, remedial training, pre and post-opening onsite assistance, post-opening consultations, and inspections remotely via a designated virtual communication platform.

Initial Training Program Franchisees and their initial supervisory or managerial staff must successfully complete the franchisor’s initial training program. The franchisor may charge fees for training additional or subsequent personnel. This training covers an overview of the franchisor’s standard management system, marketing, sales, and closet installations, typically lasting around 10 business days.

Regional Leadership Conferences Additional training is provided at Regional Leadership Conferences organized by the franchisor, held 1-4 times a year. Attendance is mandatory for the franchisee and one managerial employee per Closet Factory Outlet.

Territory Protection

Closet Factory provides territory protection to its franchisees. When awarded a franchise, it includes the operation of a single Traditional Closet Factory Outlet at a specified location within a designated Territory.

The Territory is defined by geographic boundaries based on demographic factors such as population density, geography, zoning, market conditions, and other relevant factors.

The franchise agreement guarantees that the franchisor will not enter into another Franchise Agreement for a Traditional Closet Factory Outlet or open a franchisor-owned Traditional Closet Factory Outlet within your defined Territory.

Competitors

Up Closets

Up Closets specializes in designing and installing personalized storage systems, maximizing space efficiency for homes and businesses.

Franchisees

?

44
+
2100%
2100%
Investment

?

$71,000 - $128,000

The Designery

The Designery offers customized design solutions for kitchen, bath, and other home spaces, blending functionality and aesthetics to transform interiors.

Franchisees

?

21
+
n.a.
n.a.
Investment

?

$156,000 - $387,000

Weathersby Guild

Weathersby Guild offers furniture repair and restoration services for residential and commercial customers, repairing and refinishing furniture to restore its beauty and functionality while preserving its original character and value.

Franchisees

?

54
+
2%
2%
Investment

?

$72,000 - $98,000

The Tailored Closet

The Tailored Closet offers custom closet organization solutions, optimizing storage and functionality to create well-organized and efficient living spaces.

Franchisees

?

162
+
-1%
-1%
Investment

?

$155,000 - $269,000

Tailored Living

Tailored Living offers custom organization and storage solutions, optimizing closets, garages, and living spaces to enhance functionality and order.

Franchisees

?

162
+
-1%
-1%
Investment

?

$155,000 - $269,000

Surface Experts

Surface Experts offers bathtub, countertop, and tile refinishing services, providing cost-effective solutions to revitalize and refresh surfaces.

Franchisees

?

81
+
37%
37%
Investment

?

$140,000 - $227,000