Closet Factory franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.13 ↗

Franchise fees and ongoing costs

Franchise fee

$58,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6.75% · Greater of 6.75% of Gross Receipts or $975 per week, paid weekly; minimum starts the 40th week after opening and is inflation-adjusted; holdover status is $1,200/week or 13.5% of Gross Receipts, whichever is greater

Marketing contribution

15% (basis not captured; see original filing)

Technology fee

ClosetWare software license $94.68 per month (one full user license required; additional users may cost extra)

Other fees

Grand opening marketing minimum $20,000 (within 3 months of opening); potential customer lead referral fee $30-$75 per referral; management fee $500/day if franchisor steps in after default

Working capital (FDD Item 7)

Additional Funds - 3 months: $60,000 - $100,000 (working capital for miscellaneous business expenses before opening and through first 3 months of operation, including initial insurance premiums)

Fees sourceFDD p.9 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.13 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Gross sales of franchised Closet Factory Businesses (total, average, median, highest/lowest, quartile breakdowns, and average sales per new order and per customer appointment); no costs, expenses or profit disclosed

Reporting period

Fiscal year ended December 31, 2024 (also shows 2023 and 2022)

Sample

47 franchised Closet Factory Businesses (each an umbrella business that may comprise multiple territories) open more than one year at 12/31/2024; excludes 1 franchised business that closed in 2024 and the 6 affiliate-owned CFI outlets

Reported average

$6,097,058

Reported median

$4,618,860

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.33 ↗

Unit growth: Item 20

Reporting year

2024

Scope

franchised outlets

Starting outlets

78

Year-end outlets

86

Net change

+8

Derivation

ending minus starting outlets

Openings

9

Terminations

1

Non-renewals

0

Other closures

0

Reacquisitions

0

Transfers

4

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.49 ↗

SBA loan history

Loan activity

22 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$325,100

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

12 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

1 / 8

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Closet Factory franchise cost?

Traditional Closet Factory Outlet (single format offered): $392,500 to $663,500 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $58,500 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.13 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Closet Factory owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Gross sales of franchised Closet Factory Businesses (total, average, median, highest/lowest, quartile breakdowns, and average sales per new order and per customer appointment); no costs, expenses or profit disclosed. Sample: 47 franchised Closet Factory Businesses (each an umbrella business that may comprise multiple territories) open more than one year at 12/31/2024; excludes 1 franchised business that closed in 2024 and the 6 affiliate-owned CFI outlets. Period: Fiscal year ended December 31, 2024 (also shows 2023 and 2022).

Item 19 performance sourceFDD p.33 ↗

What's the SBA charge-off rate for Closet Factory?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 1 / 8. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $325,100; window: FY2023-FY2026 YTD through 2026-06-30; sample: 12 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗