Closet Factory

At a Glance

Products & Services: Custom closet and storage systems

Number of Locations: 71

Total Investment: $182.5K - $310K

Founded: 1983

Began Franchising: 1985

About Closet Factory

John LaBarbera founded The Closet Factory in a small industrial space in Los Angeles in 1983. The company started out with six employees customizing closets, offices, garages and pantries, and now has more than 100 employees at its Los Angeles headquarters. There are also 11 other factories around the world.

The Closet Factory works with homeowners, contractors and interior decorators, installing closets, entertainment centers, pantries and shelves for offices and garages.

Franchise Units

Year U.S. Canadian International Company Owned
2013 58 0 0 13
2012 57 0 0 15
2010 61 0 0 14
Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Midwest, Nebraska, North Carolina, North Dakota, Northeast, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South, South Carolina, South Dakota, Southeast, Southwest, Tennessee, Texas, Utah, Virginia, Vermont, West, Washington, Wisconsin, West Virginia, Wyoming.
Franchisor is seeking new units in Australia/New Zealand, Canada.

Startup Costs, Ongoing Fees and Financing

Total Investment: $182,500 - $310,000
Franchise Fee: $46,500
Ongoing Royalty Fee: 6.75%
Term of Franchise Agreement: 5 years, renewable
Financial Requirements
Net Worth: $500,000
Liquid Cash Available: $75,000
Operations
30% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 6. Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators).
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 2 weeks. At franchisee's location: 1 month.
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: Vendor discounts, promotional products, signage

Franchise Ranking History

Franchise 500®: #494 (2013), #489 (2011),