Closet Factory franchise
2025 filing · April 28, 2025GrowingShares sales figures
Closet Factory at a glance
A custom closet and storage business designing, building and installing closets, garages and offices. At the end of 2024 there were 92 Closet Factory locations in the US, 86 franchised and 6 company-owned.
The business
- Industry
- Home service
- Franchisor
- THE CLOSET FACTORY FRANCHISE CORPORATION
- The company that sells the franchises
- Current franchisor selling since
- 1985
- 40 years of selling franchises
- Franchisor based in
- Los Angeles, California
What you pay
- Cost to open
- $393K–$664K
- Fee, build-out and opening working capital
- Franchise fee
- $58,500
- Paid once, when you sign
- Royalty
- 6.75%
- 6.75% of gross receipts or $975 a week, whichever is greater
- Renewal fee
- $7,000
- When the agreement ends and you sign again
- Agreement length
- 5 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 92
- Franchised and company-owned
- Franchised
- 86
- Company-owned
- 6
- Change in 3 years
- +17
- Franchised locations, 2022–2024
- States
- 32
- Most in California, Texas and Florida
Support and records
From THE CLOSET FACTORY FRANCHISE CORPORATION’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Closet Factory among all franchises with the same figure.
| Figure | Closet Factory | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $528,000 | Costs more than 66% of franchises |
| Franchise feePaid once, when you sign | $58,500 | Higher than 85% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6.8% | Higher than 70% of brands with a set rate |
| US locationsFranchised and company-owned | 92 | More than 75% of franchises |
| Sales per locationYearly, as the brand reports it | $6,097,058 | Higher than 99% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 12× | Higher than 97% of brands that share sales figures |
How much a Closet Factory franchise costs
Opening one Closet Factory costs an estimated $392,500 to $663,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are equipment, fixtures and furniture ($180,000 to $300,000) and additional funds - 3 months ($60,000 to $100,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $58,500 | ||
| Site Location | $28,000 | $64,000 | |
| Property Improvements | $10,000 | $40,000 | |
| Equipment, Fixtures and Furniture | $180,000 | $300,000 | |
| Vehicles(4) (Deposit on lease) | $10,000 | $15,000 | |
| Signage and Uniforms | $2,000 | $6,000 | |
| Product and Supply Inventories | $14,000 | $25,000 | |
| Grand Opening Marketing Program | $30,000 | $55,000 | |
| Additional Funds - 3 months | $60,000 | $100,000 | |
| Total | $392,500 | $663,500 | |
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, page 12
Closet Factory franchise fee
The franchise fee is $58,500. You pay it when you sign the franchise agreement.
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, page 9
Royalty and ongoing fees
| Royalty | 6.75% of gross receipts or $975 a week, whichever is greater. |
|---|---|
| Transfer Fee | $18,500 |
| Renewal Fee | $7,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, page 9
Other fees as filed, from page 11. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Closet Factory publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $6,097,058
- Median sales
- $4,618,860
Yearly figures for 2024, covering franchised businesses (one to four territories each) open more than one year at the end of 2024 (47 locations). The average is about 12 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, pages 32–33
SBA loans to Closet Factory franchisees
Lenders approved 74 SBA-backed loans for Closet Factory franchisees from 1994 to 2026, $31.8M in all: 70 7(a) loans and 4 504 loans. Of the 51 that have ended, 39 were paid in full and 12 were charged off (23.5%). The other 23 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | Closet Factory | Typical home service brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +10% / +25% | +2.1% / +15% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 1.3% / 4.3% | 5.3% / 20% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical home service brand is the median of the 180 brands in home service franchises with three years of counts.
How Closet Factory compares
Of the 475 home service franchises on this site, Closet Factory is the 465th cheapest to open and the 136th largest by number of locations.
| Figure | Closet Factory | Typical home service brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $393K | $115K | $222K |
| Cost to open, high end | $664K | $202K | $477K |
| Franchise fee | $59K | $50K | $40K |
| Royalty | 6.8% | 7% | 6% |
| Sales per location | $6.1M | $588K | $794K |
| US locations | 92 | 40 | 21 |
| Shares earnings figures | Yes | 367 of 475 | 2,147 of 3,352 |
Typical is the median across the 475 brands in home service franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 69 (+4) | 6 | – | – |
| 2022 | 74 (+5) | 6 | +6 | −1 |
| 2023 | 78 (+4) | 6 | +5 | −1 |
| 2024 | 86 (+8) | 6 | +9 | −1 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Over 4 years, from the start of 2021 to the end of 2024, franchised locations went from 65 to 86 (+21, +32%). The earlier years come from the brand's 2024 filing.
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, page 49
2021: THE CLOSET FACTORY FRANCHISE CORPORATION, 2024 filing, page 47
Where Closet Factory locations are
At the end of 2024, Closet Factory had locations in 32 states. The most are in California, Texas and Florida.
- California16
- Texas7
- Florida6
- New Jersey6
- New York5
- Illinois4
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 10 | 6 | 16 |
| Texas | 7 | 0 | 7 |
| Florida | 6 | 0 | 6 |
| New Jersey | 6 | 0 | 6 |
| New York | 5 | 0 | 5 |
| Illinois | 4 | 0 | 4 |
| Virginia | 4 | 0 | 4 |
| Massachusetts | 3 | 0 | 3 |
| Michigan | 3 | 0 | 3 |
| Pennsylvania | 3 | 0 | 3 |
All 32 states
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, page 50
Who owns Closet Factory?
Closet Factory franchises are sold by THE CLOSET FACTORY FRANCHISE CORPORATION. Its filing names no parent company.
From THE CLOSET FACTORY FRANCHISE CORPORATION’s 2025 filing, page 7.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: THE CLOSET FACTORY FRANCHISE CORPORATION, 2025 filing, litigation on page 9, bankruptcy on page 9
Closet Factory filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from THE CLOSET FACTORY FRANCHISE CORPORATION’s 2025 filing, issued April 28, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 28, 2025 | Minnesota | Costs, fees and locations, 2022–2024 |
| 2024 filing | – | Minnesota | Locations, 2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
