Closets by Design franchise research

Investment by format

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

Investment sourceFDD p.22 ↗

Franchise fees and ongoing costs

Franchise fee

$20,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

7.25% · Greater of 7.25% of prior month's Gross Revenues or a $3,000/month Minimum Royalty; due by the 5th of each month, collected via weekly estimated withdrawals (renewing franchisees pay 7% in the first renewal year, then 7.25%)

Marketing contribution

2.25% (basis not captured; see original filing)

Technology fee

Currently none; may be imposed up to 1% of prior month's Gross Revenues (or per-transaction amount), payable with royalty

Other fees

National Promotion and Protection Fund steps up from 2.25% (2026) to 2.50% (2027) to 2.75% (2028+) of Gross Revenues; Software Maintenance Fee $225/month plus $300/year software license; Lead fees up to 120% of system average cost per lead

Working capital (FDD Item 7)

Additional Funds - 1st 3 months: $25,000 to $75,000 (as incurred; FDD says CBDF does not require minimum funds but reserves are advisable)

Fees sourceFDD p.13 ↗

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.22 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Annual Sales (grand total of all contracts sold in the year, net of refunds/credits and taxes), plus closing ratio and average/median sale, for mature franchised businesses; also disclosed by mature franchised territory

Reporting period

Fiscal year 2025 (ended December 31, 2025)

Sample

60 mature franchised businesses (open 12+ months) out of 69 franchised businesses; territory-level table covers 78 mature territories out of 90

Reported average

$10,175,625

Reported median

$7,666,809

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.49 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

79

Year-end outlets

84

Net change

+5

Derivation

ending minus starting outlets

Openings

9

Terminations

2

Non-renewals

0

Other closures

2

Reacquisitions

0

Transfers

0

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.54 ↗

SBA loan history

Loan activity

19 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$422,500

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

12 loans

Historical charge-off share

18.75%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

3 / 16

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 Closets by Design franchise cost?

standard (single territory; Item 7 assumes 100,000-350,000 households; excludes any Market Development Fee): $154,000 to $511,000 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $20,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.22 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Closets by Design owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Annual Sales (grand total of all contracts sold in the year, net of refunds/credits and taxes), plus closing ratio and average/median sale, for mature franchised businesses; also disclosed by mature franchised territory. Sample: 60 mature franchised businesses (open 12+ months) out of 69 franchised businesses; territory-level table covers 78 mature territories out of 90. Period: Fiscal year 2025 (ended December 31, 2025).

Item 19 performance sourceFDD p.49 ↗

What's the SBA charge-off rate for Closets by Design?

18.75%; numerator / denominator: 3 / 16. 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: $422,500; 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 ↗