Classy ClosetsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Classy Closets franchise requires a total initial investment of $55K – $312K, including a $50K franchise fee. Per the 2025 FDD, average unit revenue was $2.3M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $55K – $312K
- 13th pct Business Serv…
- Avg gross sales
- $2.3M
- 25th pct Business Serv…
- Royalty
- N/A
- Units
- 17
- 21st 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
Each dollar invested generates 12.5x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 14 to 12 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $55K – $312K including a $50K franchise fee.
- Average unit revenue of $2.3M/year (median $1.9M).
- Verdict A (Top Quintile) with a risk score of 24/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- CHRLS Enterprises, Inc.
- Incorporated in
- AZ
- HQ
- 1251 S. Nelson Drive, Chandler, Arizona 85226
- Auditor
- Farnsworth Company, PLLC
- Audited financials
- Franchisor revenue
- $2.6M
- vs $2.8M prior year
Overview
About
Classy Closets franchisees design, manufacture, and install custom closet systems and storage solutions for residential and commercial clients. Day-to-day operations include in-home consultations, 3D design work, material ordering, installation management, and customer service. Revenue is transaction-based (custom projects) rather than recurring.
- CEO
- Duane Layton Standage
- Headquarters
- AZ
- Founded
- 2004
- FDD year
- 2025
- States available
- 8
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $2K | $20K |
| Equipment, build-out, other | $3K | $242K |
| Total initial investment | $55K | $312K |
Source: Classy Closets 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$297K
13.0% margin
Unlevered ROIC
153%
EBITDA / total invested capital
Payback
8 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $55K – $312K
- Better than avg vs category
- Liquid capital req'd
- $2K – $20K
- Better than avg vs category
- Franchise fee
- $35K – $50K
- Better than avg vs category
- Royalty
- Greater of Minimum Monthly Royalty ($1,000–$2,500) or 5% …
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 5% or MMR (CCDI-M: $1,000 first 24 months, $2,500 after; CCDI-R: $500 first 12 months) |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $4K |
| Transfer fee | $3K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $2.3M
- Per unit, per year
- Median gross sales
- $1.9M
- Item 19 type
- net_sales
- Sample size
- 10 units
- vs category median 32 · small
- Range (low → high)
- $452K→$6.0M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
Revenue is 12.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Business Services averages
How Classy Closets Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 2
- 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
- 3
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (yr3)
- +16.7%
- Net unit change last year
- 3-yr CAGR
- +16.7%
- 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 · 10 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 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $493K
- Median loan
- $246K
- 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
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Classy Closets's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Classy Closets presents moderate-to-cautious risk: undisclosed profitability, tiny franchise system, high fixed costs relative to entry price, and wide investment variance demand rigorous franchisee validation before commitment.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Farnsworth Company, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 24 / 100 rating
- 01MEDNet Income not disclosed in Item 19 — cannot validate profit margins or ROI claims against $54,650–$311,500 investment range
- 02MEDSmall unit count (17 total) with modest growth (16.7% YoY = ~2.8 net new units) suggests limited brand momentum and potential saturation risk
- 03MINORHigh franchise fee ($50,000) relative to total investment floor ($54,650) leaves minimal working capital for marketing, labor, and equipment
- 04MINORBroad investment range ($54,650–$311,500, 470% spread) indicates inconsistent unit economics or geography-dependent costs not explained
- 05MINORMinimum monthly royalty ($1,000–$2,500) is substantial burden on smaller locations; at $1,000/month ($12,000/year) against $54,650 initial investment = 22% annual fixed cost pressure
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 | 5 years |
| Territory type | Geographic |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 10 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Maricopa County, Arizona |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- POS system
- Classy CRM, Classy CAD, and Classy COS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Classy CRM, Classy CAD, and Classy COS
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Classy Closets · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Classy Closets franchise?
The total investment to open a Classy Closets franchise ranges from $55K – $312K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Classy Closets franchise owners earn?
According to Item 19 of the Classy Closets FDD, the average gross sales per unit is $2.3M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Classy Closets's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Classy 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 Classy Closets franchise locations are there?
As of their most recent FDD filing, Classy Closets has 17 total units in the United States, including 14 franchised units and 3 company-owned units. 2 new units were opened in the latest reporting year.
Is Classy Closets a good franchise to buy?
FranchiseVerdict rates Classy Closets as a A-grade franchise with a risk score of 24 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.