Closet Factory Franchise FDD, Profits & Costs (2025)
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.
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
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:
This compares to $324,000 yearly revenue for similar furniture franchises. Below are a few Closet Factory competitors as a comparison:
Closet Factory Franchise Disclosure Document
Frequently Asked Questions
How many Closet Factory locations are there?
As of the latest data, Closet Factory operates 84 total units, comprising 78 franchised units and 6 company-owned units.
What is the total investment required to open a Closet Factory franchise?
The total investment required to open a Closet Factory franchise ranges from $345,000 to $612,000.
What are the ongoing fees for a Closet Factory franchise?
The ongoing fees for a Closet Factory franchise include a royalty fee of 6% of gross sales, which is paid regularly to the franchisor. Additionally, franchisees are required to contribute 1% of their gross sales to a national marketing fund. These fees are essential for supporting the brand’s operations, development, and promotional efforts across all markets.
What are the financial requirements to become a Closet Factory franchisee?
To become a Closet Factory franchisee, candidates must meet specific financial requirements, including a minimum net worth of $500,000 and liquid capital of at least $150,000. These financial benchmarks ensure that franchisees have the resources necessary to cover startup costs and initial operations while maintaining financial stability.
How much can a Closet Factory franchise owner expect to earn?
The average gross sales for a Closet Factory franchise are approximately $4.08 million per location. Assuming a 15% operating profit margin, $4.08 million yearly revenue can result in $612,000 EBITDA annually.
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.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
