California Closets
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.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one California Closets unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 62 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
California Closets · FDD (2025) PDF