FRANCHISE RESALES

Buy a Closet Factory Franchise

Closet Factory is a leading custom closet and home organization franchise founded in 1983, with over 50 locations across the United States. It pioneered the floor-based closet system, setting industry standards by offering the largest range of customizable products—from melamine to custom stained or painted woods—allowing customers to tailor solutions to their unique tastes, needs, and budgets. The franchise serves a broad market beyond closets, including home offices, garage cabinets, entertainment centers, wall beds, pantries, bookshelves, and laundry rooms, creating multiple revenue streams and strong referral potential. Closet Factory’s proprietary Designer Sales Training and ClosetWare™ software equip franchisees with tools for effective design, sales, project management, and marketing. Franchise territories are large and exclusive, often covering several counties in major metropolitan areas, providing significant market opportunity.

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Why buy a Closet Factory Franchise?

Owning a Closet Factory franchise offers a proven, scalable business model in a high-demand, recession-resistant industry. Franchisees benefit from exclusive territories, extensive product lines, and strong brand recognition. Comprehensive training, proprietary technology, and national marketing partnerships provide a competitive edge. The opportunity to serve diverse home organization needs creates multiple revenue streams and repeat business, making Closet Factory an attractive investment for entrepreneurs seeking growth and profitability in the home remodeling sector.

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

    Closet Factory offers comprehensive training through its proprietary Designer Sales Training series, ongoing operational, design, advertising, and marketing support, and access to proprietary software for business management. Franchisees receive assistance with lead generation, local marketing, and benefit from national partnerships with companies like Costco. Corporate staff collaborate with franchisees to foster manageable growth and maximize profitability.

  2. Ideal Owner

    The ideal franchisee is a creative, hands-on entrepreneur with a passion for home improvement and customer service. Experience managing teams and scaling businesses is valuable, but strong sales and design aptitude, along with a commitment to delivering personalized solutions, are key. Owners should be motivated to build lasting customer relationships and leverage multiple product offerings.

  3. Recognition & Awards

    Closet Factory is recognized as a market leader and innovator in the custom closet industry, consistently outperforming competitors with its product breadth and professionalism. It ranked #391 in the 2025 Entrepreneur Franchise 500, reflecting strong brand reputation and franchisee success.

  4. Industry / Market

    The U.S. home organization market is a multibillion-dollar industry, with Americans spending nearly $12 billion annually on custom closets and storage solutions. Demand is driven by growing consumer interest in home remodeling, organization, and maximizing living spaces, making Closet Factory well-positioned for continued expansion.

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