Quick Verdict · who it fits
Closets by Design fits owner-operators looking for a mid-scale home services concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$154K - $511K
Franchise fee (Item 5)
$20K
Royalty (Item 6)
7.25% + 2.25% ad
Item 19 median rev
$7.67M all franchised businesses open 12+ months
System size (Item 20)
84 +9
Agreement term
5 yrs
Years in business
25+ yrs
Company-owned units
6
Item 3 litigation
None disclosed
Model Closets by Design's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Financing available✓Exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Where units actually land — not just the headline average.
P25
$3.65M
Median
$7.67M
P75
$9.97M
▪ n = 60 units · all franchised businesses open 12+ months · fiscal year 2025 · Source: 2026 FDD Item 19
Drag to your projected annual sales. Royalty 7.25% + ad fund 2.25% on gross sales.
PROJECTED ANNUAL SALES$7,670,000
$100k$13.9M
Royalty (7.25%)
—
Ad fund (2.25%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
90
Total units open
5
Units opened last year
9
Units closed last year
-4
Net unit growth
What our analysis flagged across the 2026 filing.
4
Risks to review
4
Strengths identified
5
Questions to ask
How Closets by Design ranks against 254 Home Services peers we've analyzed.
Initial investment
67th pct · of 254 peers
Franchise fee
6th pct · of 254 peers
System size
58th pct · of 254 peers
Home Services industry averages
Avg investment
$156K - $287K
Avg franchise fee
$52K
Avg system size
150
Franchises analyzed
254
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Closets by Design | Disclosed | $20K | $154K - $511K | 7.25% | 84 |
| Insulation CommandosSimilar price | Disclosed | $65K | $220K - $515K | 6% | 64 |
| BranchesBiggest system | Disclosed | $68K | $80K - $114K | 6% | 8,086 |
| Service ExpertsTop-rated in category | Disclosed | $60K | $149K - $289K | 6% | 2 |
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Free explainers to go deeper before you sign.
Brand Analysis
Home Instead's most recent Item 19 reports a $2.26M median across 603 franchised territories — among the highest senior-care AUVs disclosed. The low investment ($91K-$270K) makes the AUV-to-investment ratio one of the strongest in any franchise category.
Brand Analysis
Home service franchises offer lower overhead than restaurants and strong recession resistance. Compare investment costs, royalties, and territory sizes across plumbing, cleaning, restoration, lawn care, HVAC, and handyman brands.
Brand Analysis
HomeVestors' 2026 FDD reports a $287K median across 898 franchised territories — but the unit-economics story is unique: the franchisee buys houses, renovates, and resells. Revenue is one metric; capital deployment and inventory cycle are the real ones.
Closets by Design requires a $20,000 initial franchise fee and a total initial investment range of $154,000–$511,000, per the most recent FDD on file.
Closets by Design is franchised by CBD FRANCHISING, INC., the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Yes. Closets by Design discloses Item 19 financial performance representations with reported revenue around $7,666,809. See the financials sub-page for the full distribution.
Franchisees pay a royalty of 7.25% and an advertising fund contribution of 2.25% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Closets by Design has 84 total locations, with 9 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Yes. Closets by Design grants franchisees an exclusive territory under Item 12 of the FDD. Note that exclusive territories often carve out online sales, alternative distribution channels, and non-traditional venues — review the full Item 12 language before signing.
Per the FDD, Closets by Design discloses an initial agreement term of 5 years, a renewal fee of $5,000, a transfer fee of $8,500. Review Items 10 and 17 for the full renewal and termination provisions.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt