The Tailored Closet

The Tailored Closet Franchise FDD, Costs & Fees (2025)

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

Founded in 2006 in Irvine, California, The Tailored Closet has emerged as North America's largest home organization franchise. Initially launched as Closet Tailors, the brand evolved into Tailored Living in 2011 and rebranded to The Tailored Closet in 2022.

Headquartered in Irvine, the company began franchising the same year it was founded. Today, it operates over 160 territories across the U.S. and Canada, offering entrepreneurs a scalable, management-focused business model.

The Tailored Closet specializes in designing and installing custom storage solutions for various areas of the home, including closets, pantries, home offices, laundry rooms, mudrooms, and craft spaces.

Their personalized consultation process ensures each client's unique needs are met, transforming cluttered spaces into organized sanctuaries. Utilizing proprietary 3D design software, franchisees can provide clients with real-time visualizations of their customized storage solutions.

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$19,950
Initial Territory Fee$55,000
Travel and Living Expenses While Training$1,000 - $1,500 per person
In-Person Training for Additional Personnel (per person)$0 - $1,500
Office/Warehouse (Deposit and 3 months rent)$3,000 - $9,500
Vehicle$10,000 - $55,000
Trailer$0 - $10,000
Forklift$1,990 - $16,425
Computer Equipment$1,500 - $2,500
Credit Card Processing Technology$30 - $500
Auto Insurance$500 - $2,400
Commercial General Liability Insurance$500 - $2,400
Contractor's License and Bond$0 - $1,500
Professional Fees$750 - $1,500
Initial Marketing$10,000 - $15,000
Initial Inventory$5,000 - $8,000
Additional Tools and Supplies$15,000 - $20,000
Additional Funds – Before Opening and First 3 Months$31,000 - $46,000
Total Estimated Investment$155,220 - $268,675

Franchise Disclosure Document

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Training

The Tailored Closet provides a multi-part training program to ensure that franchisees and their staff are equipped with the necessary skills to operate effectively. The training covers both technical and business operations and is led by experienced professionals within the organization.

  1. Pre-Training: This component includes virtual instruction on technology, email systems, and The Source Community Platform to prepare attendees for the in-person Academy training.
  2. Academy Training: Conducted in person at the HFC Experience Center in Coppell, Texas, this 10-day session covers installation, design tools, customer service, sales techniques, business operations, and marketing. A travel voucher of $1,000 is provided, but attendees must cover additional costs.
  3. Post-Academy Training: Following the in-person session, franchisees undergo additional virtual training modules focused on continuing education and reinforcement of core concepts.
  4. Staff Training: Franchisees are responsible for training their employees using proprietary materials provided during the initial training, including manuals and handbooks.

Territory Protection

The Tailored Closet offers limited territorial protection to its franchisees under the franchise agreement. Franchisees are granted a defined territory, typically consisting of approximately 100,000 households identified by ZIP codes, where no other franchisee or company-owned operation using The Tailored Closet's system and marks will be allowed to operate.

However, this protection does not guarantee complete exclusivity, as franchisees may still face competition from other channels, such as e-commerce or unrelated businesses using different marks.

While The Tailored Closet restricts direct competition within a franchisee’s designated territory, it reserves broad rights to sell products through alternative means like catalogs, the Internet, or direct marketing.

Number of units

2024
Franchised units

164

169

162

Company-owned units

0

0

0

Total units

164

169

162

Competitors

Up Closets

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$71,000
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$128,000
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44
+
2100%
2100%

The Designery

Investment required
$156,000
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$387,000
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21
+
n.a.
n.a.

Weathersby Guild

Investment required
$72,000
-
$98,000
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54
+
2%
2%

Tailored Living

Investment required
$155,000
-
$269,000
Franchisees
162
+
-1%
-1%

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