The Tailored Closet Franchise Cost, Revenue & Review 2026
- Investment
- $177K – $271K
- Disclosed sales
- $507K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (6)
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 and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average revenue per territory was $507K. This franchisor reports Item 19 per territory rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $177K – $271K
- 72nd pct Home Services
- Avg gross sales
- $507K
- Per territory, not per outlet
- Royalty
- 5.0%
- 8th pct Home Services
- 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 median · 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, 5.0% ongoing royalty.
- RETURNSAverage revenue per territory of $507K/year. Averaged per territory, not per outlet - not comparable with per-outlet figures.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHNegative: net -8 franchised outlets in the latest year (2 opened, 10 closed) (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Organized Spaces, LLC
- Parent company
- Home Franchise Concepts LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- JM Family Enterprises, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- 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
Same owner · FDD Item 1, page 9
8 other brands on this site name JM Family Enterprises, Inc. as parent or ultimate parent in their own FDD.
- AdvantaCleanD
- Aussie Pet MobileC
- BATH TUNE-UPB
- BUDGET BLINDSB
- CONCRETE CRAFTD
- PREMIERGARAGEB
- TWO MAIDSA
- Tailored LivingC
Portfolio: Home Franchise Concepts
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 runs 33% above the typical 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
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $50K |
| Renewal fee | $5K |
| Inventory (initial) | $16K – $29K |
| 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.
What do units actually make?
Average unit sales run 14% below the home services norm.
Averaged per territory, not per outlet - not comparable with per-outlet figures
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for THE TAILORED CLOSET until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$262K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one THE TAILORED CLOSET unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Averaged per territory, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $507K
- Per territory, per year — not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical gross sales - single vs multiple territory franchisees
- Sample size
- 40 territories
- vs category median 32
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 319 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average territory generates $507K/year in gross sales.
Fee burden
Total ongoing fee load of 6.0% — below the Home Services median of 8.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
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 medians
How The Tailored Closet Compares
Per territory, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 136
- Opened
- 2
- Last reporting year
- Closed
- 10
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.4%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 7
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
75 current owners across 29 states; 8 former (terminated, transferred or not renewed) listed separately.
- FL 10
- CA 9
- NJ 4
- TX 4
- CT 3
- KS 3
- OH 3
- TN 3
- WI 3
- AR 2
- CO 2
- ID 2
- +17 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (6)
- Insufficient SBA coverage: 6 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (6)
- 5-yr charge-off
- Under 10 loans (6)
- 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One historical administrative consent order (2006) against affiliate Aussie Pet Mobile, Inc. under previous ownership, related to Maryland franchise law disclosure violations; no monetary sanctions
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 statements are the parent's audited consolidated financials (Home Franchise Concepts, LLC and Subsidiaries), not the franchisor Organized Spaces, LLC. Figures in whole USD; balance sheet reconciles (688,564,783 assets = 255,961,533 liabilities + 432,603,250 member's equity), FYE Dec 31, 2025. Other revenue is "Other sales" line ($999,950). Item 8 states the franchisor's own total revenue as $5,464,989 (FY ending 2025-12-31); the statements above are the parent's.
ⓘ 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.
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: Yes
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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
One historical administrative consent order (2006) against affiliate Aussie Pet Mobile, Inc. under previous ownership, related to Maryland franchise law disclosure violations; no monetary sanctions
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- 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
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. Important context: Averaged per territory, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns THE TAILORED CLOSET?
THE TAILORED CLOSET is franchised by Organized Spaces, LLC. Its parent company is Home Franchise Concepts LLC. The ultimate parent named in the FDD is JM Family Enterprises, Inc.. Source: FDD Item 1, 2026 filing.
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. 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 B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.