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2022 Franchise 500 Rank
#206 Ranked #403 last year
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Initial investment
$152K - $428K
Units as of 2021
71 16.4% over 3 years

Here’s what you need to know if you’re interested in opening a Closets By Design franchise.

Founded in 1982, Closets By Design creates beautiful and functional closets, in-home offices, garage cabinets, and entertainment centers. As a franchisee, you'll be required to manufacture and produce all the products and handle the installation process.

Closets By Design works under the umbrella of Home Organizers and has been franchising since 1998. As a company, they've grown to over 50 franchises in the United States, as well as several in Canada.

Why You May Want to Start a Closets By Design Franchise

After years of operation, quality solutions have been Closets By Design's identity. This identity may favor the franchisee. Customers may know what to expect from owning Closets by Design products. In addition to this, the company's proprietary customer relationship management system may help in the enterprise's daily operations.

Closets By Design typically offers exclusive territories under a business and sales model that proves to work time and again. No other franchisee from this company is permitted to operate in a domain that has already been claimed, potentially giving you plenty of customers to serve. With the availability of an exclusive territory to run and manage, franchisees may only need a team of several employees to operate efficiently.

What Might Make a Closets By Design Franchise a Good Choice?

To be part of the Closets by Design franchise team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

Closets by Design may offer qualified franchisees in-house financing to cover accounts receivable costs, inventory costs, and payroll costs. They also have relationships with third-party financing sources that may provide funds to cover startup costs, franchise fee, and equipment costs.

How To Open a Closets By Design Franchise

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence process, speak to existing franchisees so you can learn more about what it means to open a Closets By Design franchise. Additionally, research the brand and your local area to see if a Closets By Design franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

When deciding if opening a Closets By Design franchise is the right decision for you, franchisees may take part in initial training programs. Initial training programs educate franchisees on service delivery and production to meet the clients' standards and expectations. On-the-job training will last for an extensive period of time, as will classroom training. 

Various ongoing support is available to help franchisees during daily franchise operations. Support includes weekly newsletters, meetings and conventions, lease negotiation, field operations, site selection, grand opening support, a toll-free line, online support, and a company intranet platform. Additional marketing support includes ad templates, regional advertising, co-op advertising, national media, SEO, website development, email marketing, and more.

Find Your Perfect Franchise

Company Overview

About Closets By Design

Industry
Home Improvement
Founded
1982
Parent Company
Home Organizers
Leadership
Jerry Egner, President

Franchising Overview

Franchising Since
1998 (24 years)
# of employees at HQ
16
Where seeking

This company is seeking new franchisees throughout the US.

This company is seeking new franchisees in the following international regions: Canada

# of Units
71 (as of 2021)

Franchisor Information

Corporate Address
13272 Garden Grove Blvd.
Garden Grove, CA 92843

Information for Franchisees

Here’s what you need to know if you’re interested in opening a Closets By Design 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
$20,000
Initial Investment
$152,000 - $428,000
Net Worth Requirement
$500,000
Cash Requirement
$200,000
Veteran Incentives
10% off franchise fee
Royalty Fee
6.75%
Ad Royalty Fee
2.25%
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.

In-House Financing
Closets By Design offers in-house financing to cover the following: inventory, accounts receivable, payroll
Third Party Financing
Closets By Design has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment

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
144 hours
Classroom Training
80 hours
Ongoing Support
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
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
5
Are exclusive territories available?
Yes
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Franchise 500 Ranking History

Compare where Closets By Design 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