How Much Does a Closets By Design Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$154K – $511K
Franchise Fee
$20K
Royalty
Greater of (i) 7.25% of Gross Revenues, or (ii) Minimum Royalty of $3,000 per month.
Ad Fund
2.3%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Closets By Design is $20K. 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 Closets By Design franchise requires a total investment of $154K – $511K. 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 $25K to $75K.
Ongoing Costs
Beyond the initial investment, Closets By Design franchisees pay ongoing fees. The royalty structure is: Greater of (i) 7.25% of Gross Revenues, or (ii) Minimum Royalty of $3,000 per month.. The advertising or brand fund contribution is 2.3% of gross sales. There is also a technology fee of $3K.
Net Worth & Liquid Capital Requirements
Closets By Design requires working capital of $25K – $75K 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 Closets By Design's Item 19 financial performance representation:
Median gross sales: $7.2M
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 Closets By Design?
SBA Loans Issued
45
Default Rate
17.1%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Closets By Design has 45 SBA-backed loans on record. The default rate is 17.1%, which is near the franchise industry average. 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
Talk to current Closets By Design franchise owners
Get verified franchisee phone numbers for due diligence
See full Closets By Design research
Risk analysis, unit growth, contract terms, and more
Compare Closets By Design to similar franchises
Side-by-side investment, revenue, and risk comparison