California ClosetsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $872K – $1.8M
- 54th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 62
- 35th pct Business Serv…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1980. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $872K – $1.8M including a $70K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 65/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- California Closet Company, Inc.
- Parent company
- FS Brands, Inc.
- Ultimate parent
- FirstService Corporation
- CEO title
- Director, President & 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
- $782.2M
- vs $850.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate custom closet design and installation showrooms, managing in-home consultations, 3D design work, and coordinating fabrication/installation of closet systems. Day-to-day operations include sales meetings, design appointments, project management, and retail showroom management. Revenue comes from design fees, product markups, and installation labor.
- CEO
- Charles E. Chase
- Headquarters
- AZ
- Founded
- 1978
- FDD year
- 2025
- States available
- 22
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
- Near category avg vs category
- Liquid capital req'd
- $30K – $90K
- Better than avg vs category
- Franchise fee
- $63K – $70K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Revenues · 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% of gross sales |
| Technology fee | $2K |
| Training fee | $14K |
| Transfer fee | $20K |
| Renewal fee | $35K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How California Closets Compares
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
- 0.0%
- Company-owned
- 24
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Multi-unit owners
- 5.6%
- Net growth (yr3)
- +2.7%
- Net unit change last year
- 3-yr CAGR
- -2.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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.
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into California Closets's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Zip Codes |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 162 hrs
- On-the-job training
- 119 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- CXM platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: CXM platform
Item 20 · call current owners
Franchisee Contacts
34 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
California Closets · FDD (2025) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 C-grade franchise with a risk score of 65 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.