California Closets Franchise Cost, Revenue & Review 2026
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $872K – $1.8M
- 64th pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 8th pct Business Serv…
- Units
- 62
- 41st pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · 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.
- RETURNSItem 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).
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- California Closet Company, Inc.
- Parent company
- California Closet Holdings, Inc.
- Ultimate parent
- FirstService Corporation
- 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
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 375% 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%
- percentage · 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 |
| Inventory (initial) | $50K – $150K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
California Closets did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one California Closets unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
8%
Below the 30–60% attractive-franchise band
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
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).
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% — below the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How California Closets Compares
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 2
- Franchisor bought back
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
- N/A
- limited sample (6 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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.
Litigation (Item 3)
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)
ⓘ 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 |
| 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
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 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), 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.
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.