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Franchise 500 2023
2024 Franchise 500 Rank
#189 Ranked #262 last year
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Initial investment
$152K - $507K
Units as of 2023
83 Increase 29.7% 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.

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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 (26 years)
# of employees at HQ 19
Where seeking

This company is offering new franchises throughout the US.

This company is offering new franchises in the following international regions: Canada

# of Units 83 (as of 2023)

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 Information Circle
$20,000
Initial Investment Information Circle
$152,000 - $507,000
Net Worth Requirement Information Circle
$500,000
Cash Requirement Information Circle
$200,000
Veteran Incentives Information Circle
10% off franchise fee
Royalty Fee Information Circle
6.75%
Ad Royalty Fee Information Circle
2.25%
Term of Agreement Information Circle
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
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? Information Circle
No
Can this franchise be run part time? Information Circle
No
# of employees required to run 5
Are exclusive territories available? Information Circle
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

Curious to know where Closets By Design ranked on other franchise lists? Find out below.

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022