Closets by Design sells, manufactures, and installs closets, garage cabinets, and home organization systems. The franchise provides custom storage solutions for residential customers.
Key Insights
- Closets by Design has a history rooted in creating custom organization solutions, evolving from its origins to become a recognized name in home improvement. The business focuses on designing, manufacturing, and installing personalized closet and storage systems tailored to individual client needs.
- The franchise operates on a model that combines initial design consultations with in-house manufacturing and professional installation, ensuring a comprehensive service from concept to completion. This approach allows for consistent quality and a streamlined customer experience for the franchise owner.
- The home organization and remodeling sector is a significant market, reflecting a growing consumer interest in efficient living spaces and functional home enhancements. This industry provides ongoing demand for specialized services like those offered by Closets by Design.
Franchise Fee and Costs to Open
Exploring the financial picture of Closets by Design gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $154,000 - $511,000, along with a franchise fee of $20,000 - $20,000.
Financial Performance and Revenue
Yearly gross sales of $7,205,116 and estimated earnings of $1,008,717 - $1,296,921 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 0.8-2.8 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Closets by Design provides comprehensive initial training for new franchisees. This training, approximately two weeks in length, is conducted at their headquarters. The franchisor also offers ongoing resources and support. They provide operational manuals and access to a network of experienced franchisees. Closets by Design recommends utilizing these tools for success.
Legal Considerations
Legal considerations for a Closets by Design franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
Successful operation requires navigating local market dynamics, including established competitors offering similar services and the need to build brand recognition. Managing installation schedules, ensuring quality craftsmanship, and maintaining efficient inventory of materials are ongoing operational considerations. Reliance on specific manufacturers for components and materials introduces potential supply chain vulnerabilities that require proactive management.
Franchise Datasheet
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