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Closets By Design Franchising

Custom closet & home/office organization systems

Background

Founded: 1982 Franchising since: 1998
Since 1982, Closets By Design has been installing custom closets, garage organizers, entertainment centers and home office systems. Franchisees manufacture all products and handle installation.

All Closets By Design franchisees are owner/operators.

11145 Knott Ave., #A
Cypress, California 90630
Phone:
(800)377-5737/ (714)890-5860


Franchisor is a privately-held company with 120 employee(s); 12 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 38 2 0 2
2008 38 2 0 3
2007 34 0 0 3
2006 34 0 0 4
2005 36 0 0 7

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Worldwide

Exclusive territories available.
Territory size: 1-5 million population

Costs and Fees

Total investment: $124.9K-278K
Franchise fee: $36.9K
Ongoing royalty fee: 6%
Term of agreement: 5 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No Yes
Payroll No No

Qualifications
Cash liquidity requirement: $125K
Business Experience:
  • General business experience
  • Marketing skills

Operations
  • 30% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 5
  • Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Training and Support

Training
  • Available at headquarters: 3 weeks
  • At franchisee's location: 3 weeks

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Grand opening
  • Internet
  • Security/safety procedures
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks
  • National media
  • Regional advertising

Other marketing support
  • In-house art department

Rankings

Franchise 500® rank:
#420 (2009); #481 (2007);


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