Classy Closets
Bottom line
- Total investment $55K – $312K including a $50K franchise fee.
- Average unit revenue of $2.3M/year (median $1.9M).
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Classy Closets unit return on the cash you put in?
Unlevered ROIC · per unit
59%
In Yale's "attractive" band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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
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.
Score breakdown · what drove the 47 / 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
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
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Classy Closets · FDD (2025) PDF