Quick Verdict · who it fits
Closet Factory fits first-time franchise buyers looking for a mid-scale home services concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$532K - $904K
Franchise fee (Item 5)
$66K
Royalty (Item 6)
6.75% + 1–1.5% ad
System size (Item 20)
92 +9
Agreement term
5 yrs
Years in business
41+ yrs
Company-owned units
6
Item 3 litigation
None disclosed
Model Closet Factory's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Financing available•No exclusive territory✓Semi-absentee eligible✓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.
Drag to your projected annual sales. Royalty 6.75% + ad fund 1–1.5% on gross sales.
PROJECTED ANNUAL SALES$350,000
$100k$2M
Royalty (6.75%)
—
Ad fund (1–1.5%)
—
Total / year
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▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
92
Total units open
8 franchised units
Units opened last year
1 franchised unit
Units closed last year
8 units
Net unit growth
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How Closet Factory ranks against 254 Home Services peers we've analyzed.
Initial investment
98th pct · of 254 peers
Franchise fee
89th pct · of 254 peers
System size
61st 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 |
|---|---|---|---|---|---|
| Closet Factory | Disclosed | $66K | $532K - $904K | 6.75% | 92 |
| Generator SupercenterSimilar price | Disclosed | $50K | $505K - $898K | 4–6% | 54 |
| BranchesBiggest system | Disclosed | $68K | $80K - $114K | 6% | 8,086 |
| CBDTop-rated in category | Disclosed | $20K | $154K - $511K | 7.25% | 84 |
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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.
Closet Factory requires a $65,500 initial franchise fee and a total initial investment range of $531,500–$903,500, per the most recent FDD on file.
Closet Factory is franchised by The Closet Factory Franchise Corporation, 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. Closet Factory discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay a royalty of 6.75% of Gross Receipts or $975 per week and an advertising fund contribution of 1.0% of Gross Receipts, but subject to increase to 1.5% of Gross Receipts on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Closet Factory has 92 total locations, with 9 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
No. Closet Factory does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
Per the FDD, Closet Factory discloses an initial agreement term of 5 years, a renewal fee of $7,000, a transfer fee of $18,500. 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