Bottom line
- Total investment $177K – $271K including a $20K franchise fee.
- Average unit revenue of $507K/year (median $322K).
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 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
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 THE TAILORED CLOSET unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 THE TAILORED CLOSET units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$304K
on $1.5M purchase
Total debt
$1.2M
SBA $0.8M + senior + seller note
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.
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 · 21 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
Declining franchise system with regulatory history, undisclosed profitability metrics, and substantial fixed royalty obligations create moderate-to-high risk for franchisees.
Score breakdown · what drove the 63 / 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
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
51 numbers
One-time purchase · CSV download · Validation questions included
FDD download
THE TAILORED CLOSET · FDD (2026) PDF