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FRANCHISE RESALES

Buy a Closet Factory Franchise

Closet Factory is a custom home organization franchise, founded in Los Angeles in 1983 and franchising since 1985. The brand designs, manufactures, and installs custom storage systems covering the whole home: closets, home offices, garages, entertainment centers, pantries, mudrooms, and laundry rooms. Builders, architects, and interior designers regularly work with franchisees on residential renovation projects.

Each franchise operates its own local manufacturing facility, giving direct control over product quality and lead times. The brand pioneered floor-based closet systems and carries an extensive product range, with thousands of material, finish, and configuration options. A lifetime product guarantee supports customer loyalty and referral business. Franchisees also benefit from an exclusive relationship with Costco, providing kiosk access within their territory.

Territories are large and exclusive, typically covering multiple counties within a major metropolitan area, and the network spans more than 60 locations across the US and Canada. The franchisor operates its own flagship location in Los Angeles, enabling it to test new products and approaches before rolling them out to the franchise network.

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Why buy a Closet Factory Franchise?

Buying a Closet Factory franchise means entering a well-established home organization brand with over four decades of operating history. The full-home scope, covering closets, garages, home offices, and wall beds, creates multiple revenue streams per client and a higher average project value than narrower competitors. The lifetime product guarantee reinforces referrals, making the business as much relationship-driven as it is project-based.

The Costco relationship gives franchisees kiosk access inside stores within their territory, a high-visibility lead channel that an independent operator would have to build from scratch. Large exclusive territories covering multiple counties reduce internal competition and leave room for growth. The proprietary ClosetWare™ software and Designer Sales Training series provide a structured operating framework rather than a self-built one.

Closet Factory Franchise Costs & Information

Based on 2024 data reported in the 2025 FDD

  • Brand Profile

    • Year Founded

      1983

    • Franchising Since

      1985

    • New Startup Cost

      $392,500 – $663,500

    • Avg. Resale Price

      Contact us for details

  • Franchise Fees

    • Initial franchise Fee

      $58,500

      for new territories

    • Transfer Fee

      $18,500

    • Royalty Fee

      6.75%

      of Gross Revenue

    • Marketing Fee

      15%

      of Gross Receipts or $15 min

  • Unit Performance

    • Total Units *

      92

    • New Units Opened *

      9

    • Units Transferred *

      4

    • Avg. Unit revenue *

      $6,097,058

    * Based on 2024 data reported in the 2025 FDD

Closet Factory – Additional  Information

  1. Training & Support

    Franchisees complete a six-week programme: 47–51 classroom hours and 39–44 hours on the job, split between two weeks at the Los Angeles corporate headquarters and four weeks at the franchisee's facility. Training covers the Designer Sales Training series, manufacturing, installation, and the ClosetWare™ software platform. Ongoing support includes the online Academy, corporate one-on-ones, and a dedicated marketing team that manages localized websites and pay-per-click advertising. Resale buyers should confirm what ClosetWare™ access and transfer training are available when ownership changes.

  2. Ideal Owner

    The Closet Factory model suits operators who think like business managers rather than tradespeople. Owners oversee designers, production staff, and installers in a CEO-style role rather than performing installation themselves. Prior industry experience is not required; the brand's training programme prepares owners without a home improvement background. Strong sales aptitude, comfort with premium customer expectations, and an ability to manage and grow a team are the defining traits of successful franchisees.

  3. Recognition & Awards

    Closet Factory ranked #391 in the 2025 Entrepreneur Franchise 500, reflecting continued recognition within the home services franchise category. The brand's designers and locations have earned Best of Houzz recognition consistently from 2015 through 2025, based on customer satisfaction ratings on the home design platform. Closet Factory is also associated with the American Society of Interior Designers (ASID). For resale buyers, brand-level recognition should be weighed alongside the specific unit's local review standing and community visibility.

  4. Industry / Market

    The US home organizers and storage market is valued at approximately $12 billion in 2025 and is projected to grow to over $15 billion by 2030 at roughly 5% annually (Mordor Intelligence). Demand is supported by sustained home renovation activity, an aging housing stock, and the adoption of remote work that has made home office organization a priority. For resale buyers, territory demand and the existing customer pipeline are the most relevant indicators of a unit's performance.

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