Up Closets Franchise FDD, Profits, Costs & Fees (2024)
Up Closets is a custom closet franchise offering personalized storage solutions. It specializes in closets, pantries, garages, mudrooms, and laundry rooms.
Founded in 2022, the company is headquartered in Nashville, Tennessee. Franchising began in December 2022 to expand its innovative approach to home organization.
Up Closets stands out with its use of artificial intelligence in the design process. This technology enables fast and precise customization for clients. The brand focuses on affordability and quality by sourcing materials at competitive rates. These savings are passed on to franchise owners, helping them offer high-quality products at competitive prices.
Currently, Up Closets operates seven franchised locations in the U.S. The franchise model is efficient, requiring low overhead and minimal staff. It is an attractive option for entrepreneurs in the home improvement and organization industry.
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Initial Investment
How much does it cost to start a Up Closets franchise? It costs on average between $67,000 – $170,000 to start a Up Closets franchised center.
This includes costs for design tools, equipment, initial materials, and early operating expenses. The exact amount depends on various factors, including the size of the territory, the local market demand, and whether the franchisee opts for a mobile or office-based setup. Up Closets offers 2 types of franchises:
| Territory Size | Initial Investment |
|---|---|
| Small Territory | $67,250 to $122,300 |
| Large Territory | $105,250 to $169,800 |
We are summarizing below the main costs associated with opening a Large Up Closets Territory. For more information on the costs required to start a Up Closets franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $78,000 – $78,000 |
| Your Training Expenses | $500 – $2,500 |
| Equipment and Tools | $4,000 – $12,000 |
| Service Vehicle | $2,500 – $8,000 |
| Initial Inventory | $1,500 – $5,000 |
| Business Licenses and Permits | $150 – $1,500 |
| Computer Systems and Software Set-up | $100 – $1,300 |
| Professional Fees | $500 – $1,500 |
| Start Up Marketing Fee | $7,500 – $7,500 |
| Insurance | $500 – $2,500 |
| Operating Expenses / Additional Funds – 3 months | $10,000 – $50,000 |
| Total | $105,250 – $169,800 |
Competitors
Frequently Asked Questions
How many Up Closets locations are there?
As of the latest data, Up Closets operates seven franchised locations across the United States. The company does not own any corporate-operated stores; all locations are independently owned and operated by franchisees.
What is the total investment required to open a Up Closets franchise?
The total investment required to open a Up Closets franchise ranges from $59,000 to $110,000.
What are the ongoing fees for a Up Closets franchise?
Up Closets franchisees pay a monthly royalty fee of $750 to $1,650 and a brand and technology fee of $500. These fees support ongoing franchisor assistance, marketing efforts, and technological advancements.
What are the financial requirements to become a Up Closets franchisee?
To become a Up Closets franchisee, you should have a minimum net worth of $150,000 and at least $50,000 in liquid capital. These financial requirements ensure that franchisees possess the necessary resources to establish and operate their business effectively.
Who owns Up Closets?
Up Closets is owned by Thomas Scott, who also serves as the company’s CEO. He leads the franchise’s strategic direction and growth, ensuring its innovative approach to custom storage solutions remains at the forefront of the industry.
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.
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