The Tailored ClosetFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A THE TAILORED CLOSET franchise requires a total initial investment of $177K – $271K, including a $20K franchise fee. Per the 2026 FDD, average unit revenue was $507K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $177K – $271K
- 66th pct Home Services
- Avg gross sales
- $507K
- 16th pct Home Services
- Royalty
- N/A
- Units
- 136
- 60th pct Home Services
- SBA default
- N/A
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home 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
Franchised units fell from 162 to 136 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $177K – $271K including a $20K franchise fee.
- Average unit revenue of $507K/year (median $322K).
- Verdict A (Top Quintile) with a risk score of 40/100.
- System contracting at -16.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Organized Spaces, LLC
- Parent company
- Home Franchise Concepts LLC
- Incorporated in
- CA
- 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
The Tailored Closet franchisees operate custom closet design and installation businesses, providing in-home consultations, space planning, and installation of customized storage solutions. Day-to-day work includes client meetings, design work, project management, and hands-on installation of closet systems. The model is service-based with territory exclusivity but depends heavily on local sales and installation execution.
- CEO
- Jarrett Smith
- Headquarters
- CA
- Founded
- 2006
- FDD year
- 2026
- States available
- 31
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.
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
$61K
12.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $177K – $271K
- Near category avg vs category
- Liquid capital req'd
- $31K – $46K
- Near category avg vs category
- Franchise fee
- $20K – $20K
- Better than avg 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 |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $507K
- Per unit, per year
- Median gross sales
- $322K
- Item 19 type
- gross_sales
- Sample size
- 66 units
- vs category median 25 · large
- Range (low → high)
- $15K→$2.3M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
vs Home Services averages
How The Tailored Closet Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 136
- Opened
- 2
- Last reporting year
- Closed
- 10
- Turnover rate
- 7.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -5.6%
- Net unit change last year
- 3-yr CAGR
- -16.0%
- 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 · 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchise system with regulatory history, undisclosed profitability metrics, and substantial fixed royalty obligations create moderate-to-high risk for franchisees.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 40 / 100 rating
- 01MEDUnit count declined 5.6% YoY (136 units) — indicates system contraction and potential market saturation or franchisee struggles
- 02MEDNet income not disclosed in Item 19 — cannot assess actual profitability; average revenue of $506,934 means little without expense breakdown
- 03HIGHAffiliate litigation in 2006 (Aussie Pet Mobile) shows parent company history of franchise law violations and SEC enforcement actions
- 04MINORHigh royalty floor of $1,000/month ($12,000/year) starting year 2 creates cash flow pressure regardless of sales performance
- 05MINOR10-year term with protected territory is positive, but declining unit count suggests territory protection may not guarantee success
- 06MINORFranchise fee of $19,950 combined with $177,130–$270,650 total investment requires $197,080–$290,600 capital outlay with unproven ROI
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 |
| 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?
According to Item 19 of the THE TAILORED CLOSET FDD, the average gross sales per unit is $507K. The median is $322K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 162 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is THE TAILORED CLOSET a good franchise to buy?
FranchiseVerdict rates THE TAILORED CLOSET as a A-grade franchise with a risk score of 40 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.
For franchisors
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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.