The Tailored Closet Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Tailored Closet is a home-services franchise designing and installing custom closets, garage systems, and home-organization storage. Franchisees run a design-and-install operation handling in-home consultations, orders, and installations in a territory.
FranchiseVerdict summary · 2026
A THE TAILORED CLOSET franchise requires a total initial investment of $177K – $271K, including a $20K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $177K – $271K
- 73rd pct Home Services
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 136
- 66th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home 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 $177K – $271K including a $20K franchise fee.
- RETURNSItem 19 reports historical gross sales - single vs multiple territory franchisees rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- FLAG7 units terminated last reporting year (5.1% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Organized Spaces, LLC
- Parent company
- Home Franchise Concepts LLC
- Ultimate parent
- JM Family Enterprises, Inc.
- Predecessor
- Closet Tailors, Inc. / Closet Tailors, LLC / Tailored Living, LLC
- Prior franchisor entity
- CEO title
- President
- Jarrett Smith
- Incorporated in
- California
- HQ
- 19000 MacArthur Boulevard, Suite 100, Irvine, California 92612
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $145.5M
- vs $143.3M prior year
Overview
About
- CEO
- Jarrett Smith
- Headquarters
- CA
- Founded
- 2006
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost is about average for a home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $31K | $46K |
| Equipment, build-out, other | $126K | $205K |
| Total initial investment | $177K | $271K |
Source: THE TAILORED CLOSET 2026 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
- $177K – $271K
- Bottom third — review vs category
- Liquid capital req'd
- $31K – $46K
- Bottom third — review vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- greater of: (a) 5% of Gross Revenue or (b) $500 per month…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $50K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
THE TAILORED CLOSET 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 THE TAILORED CLOSET unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
34%
Within 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: 2026 FDD
Financial Performance
- Item 19 type
- historical gross sales - single vs multiple territory franchisees
- Sample size
- 40 franchisees
- vs category median 32
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 321 Home Services brands
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 6.0% — below the Home Services average of 8.9%.
Disclosure
Item 19 reports historical gross sales - single vs multiple territory franchisees rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -16.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Home Services averages
How The Tailored Closet Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 136
- Opened
- 0
- Last reporting year
- Closed
- 3
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- -16.0%
- Net unit change over 3 years
- 3-yr CAGR
- -16.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 9
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 7
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
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
- $1.2M
- Median loan
- $195K
- average
- 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
- 0
- 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
One historical (2006) administrative consent order against an affiliate under prior ownership with no monetary sanctions. Financials are parent-level (net worth $432.6M, net income $17.6M), so brand equity is not directly disclosed. Concern is the -16.0% net unit decline (136 units, 6.6% turnover); no bankruptcy or going-concern.
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.
Score breakdown · what drove the 56 / 100 verdict
- 01MINOR1 historical affiliate consent order (2006), no sanctions
- 02MINORParent-level financials ($432.6M net worth)
- 03MINORNo bankruptcy/going-concern
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | ZIP Codes |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- POS system
- ProfitKeeper
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProfitKeeper
Item 20 · call current owners
Franchisee Contacts
83 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
THE TAILORED CLOSET · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a THE TAILORED CLOSET franchise?
The total investment to open a THE TAILORED CLOSET franchise ranges from $177K – $271K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do THE TAILORED CLOSET franchise owners earn?
THE TAILORED CLOSET 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 THE TAILORED CLOSET 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 THE TAILORED CLOSET FDD and qualifies whose outlets they describe.
What is THE TAILORED CLOSET's franchise failure rate?
SBA 7(a) loan charge-off data is not available for THE TAILORED CLOSET (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 THE TAILORED CLOSET franchise locations are there?
As of their most recent FDD filing, THE TAILORED CLOSET has 136 total units in the United States, including 136 franchised units and 0 company-owned units.
Is THE TAILORED CLOSET a good franchise to buy?
FranchiseVerdict rates THE TAILORED CLOSET as a B-grade franchise with a verdict score of 56 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
Are you the franchisor?
If you represent THE TAILORED CLOSET, you can request corrections or provide updated information.
Other Home Services franchises
Compare similar franchise opportunities in the Home Services category
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.