The Tailored Closet Franchise FDD, Profits & Costs (2025)
The Tailored Closet, founded in 2006 in Irvine, California, has grown into one of the leading home organization franchises in North America. Originally introduced as Closet Tailors, the brand transitioned to Tailored Living in 2011 before adopting its current name, The Tailored Closet, in 2022.
With its headquarters still based in Irvine, the company began offering franchise opportunities the same year it was established. It has since expanded to more than 160 territories across the United States and Canada, providing entrepreneurs with a proven, scalable business model centered on management and growth.
The franchise focuses on creating customized storage and organization systems for a wide range of residential spaces, including closets, kitchens, pantries, laundry rooms, mudrooms, home offices, and hobby or craft areas.
Through a personalized consultation approach and the use of proprietary 3D design technology, The Tailored Closet delivers tailored solutions that help clients transform disorganized areas into efficient, functional, and stylish living spaces.
Initial Investment
How much does it cost to start a The Tailored Closet franchise? It costs on average between $155,000 – $269,000 to start a The Tailored Closet franchised store.
This includes expenses for showroom build-out, furniture, fixtures, equipment, vehicles, and initial operating funds. The total investment varies based on factors such as the size of the territory, the local market, and whether the franchisee decides to lease or purchase a showroom or warehouse space.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $19,950 |
| Initial Territory Fee | $55,000 |
| Travel and Living Expenses While Training | $1,000 – $1,500 per person |
| In-Person Training for Additional Personnel | $0 – $1,500 |
| Office/Warehouse (Deposit and 3 months rent) | $3,000 – $9,500 |
| Vehicle | $10,000 – $55,000 |
| Trailer | $0 – $10,000 |
| Forklift | $1,990 – $16,425 |
| Computer Equipment | $1,500 – $2,500 |
| Credit Card Processing Technology | $30 – $500 |
| Auto Insurance | $500 – $2,400 |
| Commercial General Liability Insurance | $500 – $2,400 |
| Contractor’s License and Bond | $0 – $1,500 |
| Professional Fees | $750 – $1,500 |
| Initial Marketing | $10,000 – $15,000 |
| Initial Inventory | $5,000 – $8,000 |
| Additional Tools and Supplies | $15,000 – $20,000 |
| Additional Funds – Before Opening and First 3 Months | $31,000 – $46,000 |
| Total Estimated Investment | $155,220 – $268,675 |
Average Revenue (AUV)
How much revenue can you make with a The Tailored Closet franchise? A The Tailored Closet franchised location makes on average $293,000 in revenue (AUV) per year.
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Frequently Asked Questions
How many The Tailored Closet locations are there?
As of the most recent information, The Tailored Closet operates 162 franchise-owned locations across North America.
What is the total investment required to open a The Tailored Closet franchise?
The total investment required to open a The Tailored Closet franchise ranges from $155,000 to $269,000.
What are the ongoing fees for a The Tailored Closet franchise?
Franchisees of The Tailored Closet pay an ongoing royalty fee ranging from 4% to 7% of their gross revenue. In addition, they contribute 1% of gross revenue toward national marketing and advertising efforts.
What are the financial requirements to become a The Tailored Closet franchisee?
To become a franchisee of The Tailored Closet, candidates are required to have a minimum net worth of approximately $350,000 and at least $111,220 in liquid capital.
How much can a The Tailored Closet franchise owner expect to earn?
The average gross sales for a The Tailored Closet franchise are approximately $0.29 million per location. Assuming a 15% operating profit margin, $0.29 million yearly revenue can result in $44,000 EBITDA annually.
Who owns The Tailored Closet?
The Tailored Closet franchise is owned by Home Franchise Concepts, a parent company that operates several home services franchise brands across North America.
Disclaimer
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