California Closets Franchise Cost, Revenue & Review 2026
- Investment
- $872K – $1.8M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (6)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
California Closets is a custom storage franchise designing and installing closets, home offices, and organization systems. Franchisees run showrooms and installation operations, managing in-home design consultations, fabrication, and project delivery.
FranchiseVerdict summary · 2026
A California Closets franchise requires a total initial investment of $872K – $1.8M, including a $70K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $872K – $1.8M
- 64th pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 62
- 40th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $872K – $1.8M including a $70K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- California Closet Company, Inc.
- Parent company
- California Closet Holdings, Inc.
- FDD Item 1, page 7 of the 2025 FDD
- Ultimate parent
- FirstService Corporation
- FDD Item 1, page 7 of the 2025 FDD
- CEO title
- President and Chief Executive Officer
- Charles E. Chase
- Incorporated in
- CA
- HQ
- 2001 W. Phelps Road, Suite 1, Phoenix, AZ 85023
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $850.4M
- vs $782.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 7
3 other brands on this site name FirstService Corporation as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Charles E. Chase
- Headquarters
- AZ
- FDD year
- 2025
- States available
- 22
Can you afford it, and what does the money buy?
Entry cost runs 896% above the typical business services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $30K | $90K |
| Equipment, build-out, other | $772K | $1.6M |
| Total initial investment | $872K | $1.8M |
Source: California Closets 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $872K – $1.8M
- Middle of category vs category
- Liquid capital req'd
- $30K – $90K
- Middle of category vs category
- Franchise fee
- $70K – $70K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% |
| Technology fee | $2K |
| Training fee | $14K |
| Transfer fee | $20K |
| Renewal fee | $35K |
| Inventory (initial) | $50K – $150K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
California Closets makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one California Closets unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Business Services median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -2.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 6% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How California Closets Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 62
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Multi-unit owners
- 5.6%
- Net growth (3-yr)
- +2.7%
- Net unit change over 3 years
- 3-yr CAGR
- -2.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
29 current owners across 19 states.
- FL 4
- NY 4
- AZ 2
- CA 2
- NC 2
- PA 2
- CT 1
- HI 1
- ID 1
- IN 1
- KS 1
- LA 1
- +7 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $8.2M
- Median loan
- $212K
- 50th percentile
- Charge-off rate
- Under 10 loans (6)
- Insufficient SBA coverage: 6 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (6)
- 5-yr charge-off
- Under 10 loans (6)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
California Closets presents elevated risk due to lack of financial transparency (no Item 19), stagnant system growth, and high capital requirements without disclosed revenue/profit benchmarks to justify ROI.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financials are the audited consolidated statements of the franchisor's ultimate parent, FS Brands, Inc. (formerly TFC Brands, Inc.), for FY ended Dec 31, 2024 and 2023, with a Guarantee of Performance (Exhibit A-2). Revenue lines: Royalties 99,791,571; Franchise fees 7,396,575; Merchandise sales 645,220,204; Services and other 97,957,315. Total liabilities 281,262,019 excludes non-controlling interests of 72,477,028; total assets equal total liabilities + NCI + stockholders' equity (591,191,911).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 73 / 100 verdict
- 01MINORNo Item 19 financial performance disclosure (average revenue and net income) creates inability to assess ROI on $872k-$1.78M investment
- 02MINORMinimal system growth (2.7% YoY) with only 62 units suggests market saturation or weak franchise model appeal
- 03MEDHigh initial investment ($872k-$1.78M) combined with 6% royalty and no disclosed profitability benchmarks creates significant financial risk
- 04MINOR10-year term is relatively long for a custom installation business with high customer acquisition costs and unproven unit economics
- 05MINORCustom closet market is highly competitive with local/regional competitors and big-box alternatives (California Closets brand recognition may not justify premium pricing)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 60,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Curable defaultsℹ | 9 |
| Mandatory arbitration | No |
| Arbitration location | Phoenix, AZ (mediation first per AAA Commercial Mediation Rules; disputes then in federal or state courts in Maricopa County, AZ) |
| Jury trial waiver | Yes |
| Governing law | AZ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 162 hrs
- On-the-job training
- 119 hrs
- Training location
- Online, Classroom and/or Franchisee's location; mentoring franchisee's Marketing Area
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisor must approve location; franchisee selects subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- CXM platform (Customer Experience Management)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CXM platform (Customer Experience Management)
Item 20 · call current owners
Franchisee Contacts
31 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a California Closets franchise?
The total investment to open a California Closets franchise ranges from $872K – $1.8M, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do California Closets franchise owners earn?
California Closets makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns California Closets?
California Closets is franchised by California Closet Company, Inc.. Its parent company is California Closet Holdings, Inc.. The ultimate parent named in the FDD is FirstService Corporation. Source: FDD Item 1, 2025 filing.
What is Item 19 in the California Closets FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the California Closets FDD and qualifies whose outlets they describe.
What is California Closets's franchise failure rate?
SBA 7(a) loan charge-off data is not available for California Closets (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many California Closets franchise locations are there?
As of their most recent FDD filing, California Closets has 62 total units in the United States, including 38 franchised units and 24 company-owned units. 1 new units were opened in the latest reporting year.
Is California Closets a good franchise to buy?
FranchiseVerdict rates California Closets as a A-grade franchise with a verdict score of 73 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.