
Closets By Design
Custom closet and home/office organization systems- 2023 Franchise 500 Rank
-
#262 Ranked #206 last year
- Initial investment
-
$152K - $503K
- Units as of 2022
-
76 11.8% over 3 years
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.
Company Overview
About Closets By Design
Industry | Home Improvement |
---|---|
Related Categories | Organization/Storage Systems, Miscellaneous Home-Improvement Businesses |
Founded | 1982 |
Parent Company | Home Organizers |
Leadership | Jerry Egner, President |
Corporate Address |
13272 Garden Grove Blvd. Garden Grove, CA 92843 |
Social | Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest |
Business Overview
Franchising Since | 1998 (2023-1998 years) |
---|---|
# of employees at HQ | 18 |
Where seeking |
This company is offering new franchisees throughout the US. This company is offering new franchisees in the following international regions: Canada |
# of Units | 76 (as of 2022) |
|
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 |
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Initial Investment
|
$152,000 - $503,000 |
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 |
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 |
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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
Social Media
SEO
Website Development
Email Marketing
|
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?
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No |
# of employees required to run | 5 |
Are exclusive territories available?
|
Yes |
Interested in ownership opportunities like Closets By Design? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Closets By Design landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where Closets By Design ranked on other franchise lists? Find out below.
Ranked #1 in Organization/Storage Systems in 2022
These are the companies that not only ranked in this year’s highly competitive Franchise 500, but ranked #1 in their respective industry categories.
Ranked #262 in 2023
Entrepreneur’s 44th annual Franchise 500® ranking shines a light on the unique challenges and changes that have shaped the franchise industry over the last year—and how franchisors have adapted and evolved to meet them.
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