Closet Factory
Formerly known as Cousins Subs
Bottom line
- Total investment $393K – $664K including a $59K franchise fee.
- Average unit revenue of $6.1M/year (median $4.6M).
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 36 loans (below the industry average).
- System growing at 1620% CAGR over 3 years with 92 total units — strong expansion trajectory.
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 Closet Factory unit return on the cash you put in?
Unlevered ROIC · per unit
-20%
Negative
Overview
About
Franchisees operate custom closet design and installation businesses, managing client consultations, space measurements, product selection, and installation of organizational systems. Day-to-day activities include showroom operations, design appointments, project management, and coordinating installation crews while maintaining inventory and managing customer relationships.
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 · 16 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
Closet Factory presents moderate-to-cautionary risk due to undisclosed profitability metrics, high capital requirements, modest unit growth, and franchisor financial concerns despite strong gross revenue figures.
Score breakdown · what drove the 41 / 100 rating
- 01MEDNet income not disclosed in Item 19 — unable to verify actual profitability despite $609k avg revenue
- 02MINORHigh minimum investment ($392.5k) with dual royalty structure (6.75% or $975/week minimum) creates fixed cost burden
- 03MINORModest unit growth (10.3% YoY) with only 92 locations suggests slower expansion and market saturation concerns
- 04MINOR5-year term is shorter than industry standard (10 years), requiring earlier renewal negotiation and uncertainty
- 05HIGHGoing Concern status is 'False' — potential financial instability or accounting irregularities at franchisor level
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Closet Factory · FDD (2025) PDF