Franchise Deep Dive: Closet Factory's Franchise Costs, Fees, Profit and Data

LAST UPDATED: July 18, 2023
FRANCHISE WEBSITE: https://closetfactoryfranchise.com/
NUMBER OF LOCATIONS: 61
REPORTED COST TO GET IN: $273,500 to $466,000
REPORTED ROI (Item 19): N/A

Closet Factory is a designer, supplier and installer of custom storage solutions. The franchise creates a number of different storage solutions, including closets, home offices, garages, pantries and other home organization systems.

Closet Factory was founded by John La Barbera, who opened the first location in 1983 in Los Angeles, California. The brand began offering franchises in 1985. Over the next 38-plus years, the company would become a leader in the custom storage industry.

As a result of its focus on customer satisfaction and creating high-end products, in 2021, Closet Factory was named a Franchise 500 Company by Entrepreneur Magazine..

How Many Closet Factory Locations Are There?

As of July 2023, there are roughly 61 Closet Factory locations across the country.

The brand is actively offering new franchise opportunities across the country in Alabama, Arizona, California, Florida, Hawaiian, Idaho, Indiana, Iowa, Louisiana, Maine, Michigan, Missouri, New York, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Wisconsin.

What Is Closet Factory’s Business Model?

Closet Factory’s business model is focused on providing fully customized storage solutions to customers across the country. Since the brand’s inception more than 35 years ago, Closet Factory claims to have developed an “unparalleled” knowledge of custom storage design, which has led the brand to become a leader in the thriving home organization industry.

The brand creates custom storage solutions for every room in the home, including custom closets, home offices, garages, cabinets, wall units and wall beds. According to Closet Factory’s website, the franchise says its clients typically only call for one project but commonly purchase more when introduced to all that Closet Factory offers.

From a franchisee perspective, Closet Factory provides its new owners with a comprehensive training program that’s tailored for success. New owners undergo a six-week training program that covers areas such as sales, management, manufacturing, software and daily operations. The brand also offers ongoing support to its owners, including proprietary software for streamlined business tracking and on-demand tools that ensure franchisees have everything they need to succeed.

Additionally, Closet Factory has an exclusive relationship with retail giant Costco, which offers franchise owners the potential to generate leads and acquire new customers. Read more about that partnership by clicking here.

How Much Can Closet Factory Franchise Owners Make?

Closet Factory does not have a publicly available Item 19. To learn more, contact the team about reading the Franchise Disclosure Document, which will state the total earnings of any company or franchise-owned unit as a reference.

While the brand does not make its sales figures public, the brand claims to earn “higher than industry average sales and an excellent closing ratio.”

How Much Does It Cost to Open a Closet Factory?

The initial investment required to open a Closet Factory franchise ranges between $273,500 to $466,000. Interested parties are also required to have a minimum of $150,000 liquid capital.

The full breakdown of the initial investment is as follows:

• Initial Franchise Fee: $58,500
• Site Location: $16,000 to $36,000
• Property Improvements: $5,500 to $25,000
• Equipment, Fixtures and Furniture: $125,000 to $195,000
• Vehicles (Deposit on lease): $2,500 to $7,500
• Signage and Uniforms: $1,000 to $4,000
• Product and Supply Inventories: $10,000 to $20,000
• Grand Opening Marketing Program: $20,000 to $45,000
• Additional Funds — Three Months: $35,000 to $75,000

What Is the Franchise Fee for Closet Factory?

The initial franchise fee required to open a Closet Factory franchise is $58,500.

Who’s On Closet Factory’s Leadership Team?

• John La Barbera, Founder and Co-CEO
• Kathyrn La Barbera, President of Closet Factory Inc.
• Daniel Grandon, President of Closet Factory Franchise Corporation
• Robert Love, Senior Vice President – Finance and Administration

What Helpful Articles Can I Read to Learn More About Closet Factory?

• Closet Factory Franchise Experiences Record Sales
• Closet Factory Franchisee Testimonials
• Closet Factory Franchise: Training & Support
• Transform your space with Closet Factory

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