How Much Does a The Tailored Closet® Franchise Cost?
Data from the 2026 Franchise Disclosure Document
Investment Summary
Total Investment
$177K – $271K
Franchise Fee
$20K
Royalty
greater of 5% of Gross Revenue or $500/mo (yr 1) / $1,000/mo (thereafter)
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for The Tailored Closet® 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 The Tailored Closet® franchise requires a total investment of $177K – $271K. 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 $31K to $46K.
Ongoing Costs
Beyond the initial investment, The Tailored Closet® franchisees pay ongoing fees. The royalty structure is: greater of 5% of Gross Revenue or $500/mo (yr 1) / $1,000/mo (thereafter). The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $250.
Net Worth & Liquid Capital Requirements
The Tailored Closet® requires working capital of $31K – $46K 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 The Tailored Closet®'s Item 19 financial performance representation:
Median gross sales: $322K
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 The Tailored Closet®?
SBA Loans Issued
1
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. The Tailored Closet® has 1 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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