Closet Factory Franchise FDD, Profits & Costs
Established in 1983 by John La Barbera in Los Angeles, Closet Factory has become a prominent player in the custom closet and home organization industry.
Headquartered in Los Angeles, CA, the company began franchising in 1985 and has since expanded nationwide, offering exclusive territories in major metropolitan areas to its franchisees.
Closet Factory distinguishes itself through a business model that emphasizes innovation, sophisticated design, and creativity. Its extensive range of customizable solutions extends beyond closets to include home offices, garages, and entertainment centers, providing ample opportunities for repeat and referral business from customers.
Initial Investment
How much does it cost to start a Closet Factory franchise? It costs on average between $345,000 – $612,000 to start a Closet Factory franchised facility.
This covers expenses for construction, equipment, inventory, and initial operational needs. The total investment varies based on factors such as the business model, location, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Estimated Amount |
|---|---|
| Initial Franchise Fee | $58,500 |
| Site Location | $24,000 – $52,000 |
| Property Improvements | $10,000 – $40,000 |
| Equipment, Fixtures, and Furniture | $160,000 – $275,000 |
| Vehicles | $10,000 – $15,000 |
| Signage and Uniforms | $2,000 – $6,000 |
| Product and Supply Inventories | $10,000 – $20,000 |
| Grand Opening Marketing Program | $30,000 – $55,000 |
| Additional Funds – 3 months | $40,000 – $90,000 |
| TOTAL | $344,500 – $611,500 |
Average Revenue (AUV)
How much revenue can you make with a Closet Factory franchise? A Closet Factory franchised location makes on average $4,077,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Closet Factory Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Closet Factory franchise?
Most franchise buyers in Closet Factory’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Closet Factory franchise investment?
Payback periods for franchises in Closet Factory’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns Closet Factory?
Closet Factory is owned by Home Franchise Concepts, a leading franchisor specializing in home improvement brands. Home Franchise Concepts provides strategic support and resources to ensure the success and growth of its franchisees across various markets.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
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Research Closet Factory franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Closet Factory FDD Review.
