How Much Does a Closet Factory Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$393K – $664K
Franchise Fee
$59K
Royalty
Equal to the greater 6.75% of Gross Receipts or $975 per week.
Ad Fund
15.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Closet Factory is $59K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Closet Factory franchise requires a total investment of $393K – $664K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $60K to $100K.
Ongoing Costs
Beyond the initial investment, Closet Factory franchisees pay ongoing fees. The royalty structure is: Equal to the greater 6.75% of Gross Receipts or $975 per week.. The advertising or brand fund contribution is 15.0% of gross sales. There is also a technology fee of $94.
Net Worth & Liquid Capital Requirements
Closet Factory requires working capital of $60K – $100K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Closet Factory's Item 19 financial performance representation:
Median gross sales: $4.6M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Closet Factory?
SBA Loans Issued
25
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Closet Factory has 25 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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