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FRANCHISE RESALES

Buy a Closets by Design Franchise

Closets by Design is a custom home organization franchise founded in 1982 and offering franchises since 1998. The brand specializes in designing, manufacturing, and installing personalized storage systems for residential spaces, including walk-in and reach-in closets, garage cabinets and flooring, home offices, pantries, laundry rooms, and wall beds. Products are manufactured locally by each franchisee and backed by a lifetime warranty.

The business model follows a four-step process: in-home design consultation, personalization, local manufacturing, and professional installation. Franchisees typically operate a showroom alongside a manufacturing facility, managing a team that covers design, production, and installation. This is a staffed, active-ownership model rather than a home-based or passive operation.

The brand operates across the US and Canada, with exclusive territories typically covering a defined population base. With over 3 million homes served, Closets by Design has an established consumer track record. Territories are protected, and leads generated by national marketing programmes in a franchisee’s area are directed to that franchisee.

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Why buy a Closets by Design Franchise?

Buying a Closets by Design franchise means entering a category the brand has led for more than four decades, with consumer recognition that resale buyers inherit. A lifetime warranty on products supports customer confidence and repeat referral business. Exclusive territories come with a corporate-run national marketing programme covering advertising, social media, and SEO, providing lead generation infrastructure franchisees do not have to develop independently.

The vertical structure of the model gives franchisees margin at multiple stages of each customer project, keeping the full relationship in-house from consultation through installation. The model maintains lower inventory requirements relative to revenue, which supports cash flow management for existing units.

Closets by Design Franchise Costs & Information

Based on 2024 data reported in the 2025 FDD

  • Brand Profile

    • Year Founded

      1982

    • Franchising Since

      1998

    • New Startup Cost

      $154,000 – $511,000

    • Avg. Resale Price

      Contact us for details

  • Franchise Fees

    • Initial franchise Fee

      $20,000

      for new territories

    • Transfer Fee

      $8,500

      or 2% sale price, whichever is greater; +10% min $40k if franchisor finds buyer

    • Royalty Fee

      7.25%

      of Gross Revenue

    • Marketing Fee

      2.25%

      of Gross Revenue

  • Unit Performance

    • Total Units *

      85

    • New Units Opened *

      3

    • Units Transferred *

      1

    • Avg. Unit revenue *

      $9,944,694

    * Based on 2024 data reported in the 2025 FDD

Closets by Design – Additional  Information

  1. Training & Support

    Closets by Design provides 64 hours of classroom training and 56 hours of on-the-job training, covering design, manufacturing, sales, installation, and business operations. Ongoing support includes a proprietary CRM system that assists with daily operations, a franchisee intranet platform, and national and regional marketing programmes covering co-op advertising, social media, and SEO. Resale buyers should confirm with Closets by Design what transfer training and system access, including the CRM platform, are available when ownership changes.

  2. Ideal Owner

    Closets by Design suits operators with a strong sales orientation and the ability to manage multi-function teams across design, manufacturing, and installation. Industry experience is not required, but a background in business, sales, or operations is helpful. The owner role is active and hands-on, with day-to-day involvement in territory growth, staff management, and customer satisfaction. Comfort with premium customer expectations is relevant, as the brand serves homeowners investing in custom storage rather than off-the-shelf products.

  3. Recognition & Awards

    Closets by Design has been ranked on Entrepreneur Magazine's Franchise 500 list, including at #205 in 2025, and has been recognized by Entrepreneur as the #1 franchise in its category as well as one of America's Top 50 New Franchises for four consecutive years. Additional recognition includes Franchise Times Top 100 Up & Comers, Remodeling Magazine Top 550 Remodeling Companies, and a Top 50 Franchise Satisfaction Award.

  4. Industry / Market

    The US home organizers and storage market was valued at approximately $12 billion in 2025 and is projected to reach over $15 billion by 2030, growing at roughly 5% annually according to Mordor Intelligence. Demand is driven by growing interest in organized living spaces, rising home improvement spending, and the increasing prevalence of working from home. Custom and built-in storage systems tend to attract homeowners with higher renovation budgets, making local market demographics and household income levels a relevant factor for resale buyers evaluating a specific territory.

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