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2022 Franchise 500 Rank
#342 Ranked #445 last year
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Initial investment
$274K - $466K
Units as of 2021
73 1.4% over 3 years

Here’s what you need to know if you’re interested in opening a Closet Factory franchise.

In 1983, Closet Factory opened its doors to the world, giving customers the first truly custom closets. The company, which is based in Los Angeles, California, decided that it was time to make providing custom closet and storage systems to customers a priority. 

By presenting customers with a wide variety of options and the freedom to design and own their closets, Closet Factory built a reputation of craftsmanship and innovation in the multi-billion dollar storage industry. Since franchising in 1985, Closet Factory has expanded its reach, opening nearly 70  units across the U.S.

As Closet Factory looks for qualified franchisees to join its growing franchise family, it seeks creative individuals with a passion for organizing spaces.

Why You May Want to Start a Closet Factory Franchise

Closet Factory is regarded as one of the market leaders in the closet industry. To customers, the Closet Factory's appeal is its ability to find the best solutions for closet needs, paying attention to the smallest details with each assignment.

A factor that Closet Factory believes separates it from its competition is its unique value proposition, which personalizes storage solutions to match each customer's tastes and preferences. Closet Factory provides smart one-on-one solutions to each customer's style, adds value, and organizes their home spaces, garage cabinets, and wall units.

Operating a Closet Factory franchise can empower franchisees with the ability to transform their lives while impacting customers each day. The convenience and flexibility offered by Closet Factory's built-in storage systems can save time and costs for customers and franchisees.

What Might Make a Closet Factory Franchise a Good Choice?

Closet Factory is considered to be a top option in the home improvement industry. Entrepreneur has ranked it in its Franchise 500 multiple times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

As you explore the franchise opportunity with Closet Factory, make sure to research the local market and customer needs. Ample market research may help during site selection. 

Be prepared to invest financially with a Closet Factory franchise. Costs will include a franchise fee, net worth requirement, and cash requirement. A royalty fee will also be necessary to become a franchisee with Closet Factory. The franchise term for Closet Factory franchisees is five years, and if the franchise is successful, you may be allowed to renew the agreement.

How Do You Open a Closet Factory Franchise?

As you progress with Closet Factory, you may learn about the company and its targeted research. You may also receive a Franchise Disclosure Document to sign as part of the exploration process. 

If chosen to proceed as a franchisee, you may need to complete training in Los Angeles, California. Closet Factory expects franchisees to attend around 50 hours of classroom training and 40 hours of on-the-job training. To efficiently run a franchise, you'll need six employees, which makes the preparation important. 

Closet Factory believes in preparing franchisees each step of the way, and this assistance extends to operational and marketing support once a location is opened. As a Closet Factory franchisee, you can benefit from the brand's extensive experience in innovation and possibly be part of the closet success story. 

Find Your Perfect Franchise

Company Overview

About Closet Factory

Industry
Home Improvement
Founded
1983
Parent Company
Closet Factory Franchise Corp.
Leadership
Dan Grandon, President

Franchising Overview

Franchising Since
1985 (37 years)
# of employees at HQ
110
Where seeking

This company is seeking new franchisees throughout the US.

This company is seeking new franchisees worldwide.

# of Units
73 (as of 2021)

Franchisor Information

Corporate Address
12800 S. Broadway
Los Angeles, CA 90061

Information for Franchisees

Here’s what you need to know if you’re interested in opening a Closet Factory franchise.

Financial Requirements & Ongoing Fees

Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee
$58,500
Initial Investment
$273,500 - $466,000
Net Worth Requirement
$1,000,000
Cash Requirement
$250,000
Royalty Fee
6.75%
Term of Agreement
5 years
Is franchise term renewable?
Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing
Closet Factory has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training
39-44 hours
Classroom Training
47-51 hours
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Marketing Planning & Support
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?
No
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
# of employees required to run
8-10
Are exclusive territories available?
Yes
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Franchise 500 Ranking History

Compare where Closet Factory landed on this year’s Franchise 500 Ranking versus previous years.

Additional Rankings

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise by Entrepreneur Media. Our franchise listings and rankings are solely research tools you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise. That should include reviewing the franchisor's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees.
Updated: February 8th, 2021