Closets by Design franchise
2026 filing · April 30, 2026GrowingShares sales figures
Closets by Design at a glance
A business that designs, makes and installs custom closets, garage cabinets and other home organization systems in its territory. At the end of 2025 there were 90 Closets by Design locations in the US, 84 franchised and 6 company-owned.
The business
- Industry
- Home service
- Franchisor
- CBD Franchising, Inc
- The company that sells the franchises
What you pay
- Cost to open
- $154K–$511K
- Fee, build-out and opening working capital
- Franchise fee
- $20,000
- Paid once, when you sign
- Royalty
- 7.25% + minimum
- The greater of 7.25% of the previous month's gross revenues or $3,000 a month, for new franchisees
- Brand fund
- Yes
- 2.25% of monthly gross revenue in 2026, 2.50% in 2027 and 2.75% from 2028
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Agreement length
- 5 years
- Franchisor financing
- Some financing offered
Where it is
- US locations, 2025
- 90
- Franchised and company-owned
- Franchised
- 84
- Company-owned
- 6
- Change in 2 years
- +18
- Franchised locations, 2023–2025
- States
- 33
- Most in Florida, California and Illinois
Support and records
From CBD Franchising, Inc’s 2026 filing; revenue and net income from its audited financial statements, page 172; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Closets by Design among all franchises with the same figure.
| Figure | Closets by Design | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $332,500 | Costs less than 53% of franchises |
| Franchise feePaid once, when you sign | $20,000 | Lower than 89% of franchises |
| RoyaltyShare of sales paid to the franchisor | 7.3% | Higher than 84% of brands with a set rate |
| US locationsFranchised and company-owned | 90 | More than 75% of franchises |
| Sales per locationYearly, as the brand reports it | $10,175,625 | Higher than 100% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 31× | Higher than 99% of brands that share sales figures |
How much a Closets by Design franchise costs
Opening one Closets by Design costs an estimated $154,000 to $511,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: CBD Franchising, Inc, 2026 filing, page 1
Closets by Design franchise fee
The franchise fee is $20,000. You pay it when you sign the franchise agreement.
Source: CBD Franchising, Inc, 2026 filing, page 12
Royalty and ongoing fees
| Royalty | The greater of 7.25% of the previous month's gross revenues or $3,000 a month, for new franchisees. |
|---|---|
| Brand or marketing fund | 2.25% of monthly gross revenue in 2026, 2.50% in 2027 and 2.75% from 2028. |
| Software License Fee | $300 annual lease payment |
| Transfer Fee (if transferee is identified by a third-party broker) | The greater of: 2% of the sales price or $8,500. |
| Renewal Fee | $5,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: CBD Franchising, Inc, 2026 filing, pages 13 and 14
Other fees as filed, from pages 14–18. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Closets by Design publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $10,175,625
- Median sales
- $7,666,809
Yearly figures for 2025, covering mature franchised businesses at the end of 2025 (60 locations). The average is about 31 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: CBD Franchising, Inc, 2026 filing, pages 48–49
SBA loans to Closets by Design franchisees
Lenders approved 54 SBA-backed loans for Closets by Design franchisees from 2000 to 2026, $26.1M in all: 51 7(a) loans and 3 504 loans. Of the 36 that have ended, 30 were paid in full and 6 were charged off (16.7%). The other 18 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
How Closets by Design compares
Of the 475 home service franchises on this site, Closets by Design is the 337th cheapest to open and the 139th largest by number of locations.
| Figure | Closets by Design | Typical home service brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $154K | $115K | $222K |
| Cost to open, high end | $511K | $202K | $477K |
| Franchise fee | $20K | $50K | $40K |
| Royalty | 7.3% | 7% | 6% |
| Sales per location | $10.2M | $588K | $794K |
| US locations | 90 | 40 | 21 |
| Closed or left per year | 0% | 6.5% | – |
| Change in franchised locations, 2 yrs | +27.3% | +15.9% | – |
| 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 |
|---|---|---|---|---|
| 2023 | 76 (+10) | 6 | +10 | 0 |
| 2024 | 79 (+3) | 6 | +3 | 0 |
| 2025 | 84 (+5) | 6 | – | – |
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.
Source: CBD Franchising, Inc, 2026 filing, page 53
Where Closets by Design locations are
At the end of 2025, Closets by Design had locations in 33 states. The most are in Florida, California and Illinois.
- Florida13
- California7
- Illinois5
- Michigan5
- Texas5
- New Jersey4
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Florida | 13 | 0 | 13 |
| California | 1 | 6 | 7 |
| Illinois | 5 | 0 | 5 |
| Michigan | 5 | 0 | 5 |
| Texas | 5 | 0 | 5 |
| New Jersey | 4 | 0 | 4 |
| New York | 4 | 0 | 4 |
| South Carolina | 4 | 0 | 4 |
| Washington | 4 | 0 | 4 |
| Ohio | 3 | 0 | 3 |
All 33 states
Source: CBD Franchising, Inc, 2026 filing, page 54
Who owns Closets by Design?
Closets by Design franchises are sold by CBD Franchising, Inc. It is a subsidiary of Home Organizers, Inc.
From CBD Franchising, Inc’s 2026 filing, page 6.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 8–12. |
|---|---|
| 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: CBD Franchising, Inc, 2026 filing, litigation on pages 8–12, bankruptcy on page 12
Closets by Design filings
The figures on this page come from CBD Franchising, Inc’s 2026 filing, issued April 30, 2026, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2026 filing | April 30, 2026 | NASAA depository | Costs, fees and locations, 2023–2025 |
Each link opens the filing as a PDF. See the newest filings across all brands.
