Closets By Design

Closets By Design

Information based on 2024 FDD

Home Services · Other Auto Businesses

Investment min
$154K
Total: $154K–$511K
Avg gross revenue
$10M
Unit-level, 2024
Franchise fee
$20K
Per current disclosure
Royalty
7% - 7.25%
Locations
76
Franchising since 1998

Description

What is Closets By Design?

Closets By Design has been transforming homes with custom storage solutions since 1982, establishing itself as a leader in the home organization industry. With a proven track record spanning over four decades, this franchise specializes in designing and installing custom closets, home offices, garage systems, and other innovative storage solutions tailored to each client's unique needs.

What sets Closets By Design apart is their comprehensive approach to home organization. Their process begins with professional design consultants who work closely with homeowners to create personalized storage solutions that maximize space while complementing the home's aesthetic. The franchise offers multiple design collections, from the cost-effective Everyday Collection to the sophisticated Regency Collection, ensuring options for every budget and style preference.

The brand's commitment to quality is evident in their craftsmanship and attention to detail. Their installations are handled by skilled professionals who prioritize customer satisfaction, consistently earning praise for their efficiency, cleanliness, and precise workmanship. This dedication to excellence has helped build a loyal customer base and strong reputation in the home services sector.

As a Closets By Design franchise owner, you'll benefit from their established business model, comprehensive training programs, and ongoing support. The franchise operates in a growing market segment driven by increasing demand for home organization solutions and the rising trend of home improvement projects. With their proven systems and strong brand recognition, Closets By Design offers entrepreneurs an opportunity to build a successful business in the thriving home services industry.
  • 40+ years of proven market presence since 1982
  • 82 active units demonstrating scalable business model
  • Four distinct product collections (Everyday, Classic, Regency, Brio)
  • Full-service offering from design consultation to installation
  • Lower investment entry point than sub-sector average
  • Comprehensive custom storage solutions for growing home organization market

Location Analysis

Where Closets By Design wins

Closets By Design demonstrates strong market presence across multiple states with widespread coverage, showing strategic concentration in key markets. The franchise maintains significant presence across the Eastern Seaboard and Midwest, with notable strength in major markets like Florida, Michigan, and New York, followed by strong representation in Pennsylvania and North Carolina, suggesting successful penetration in both high-density urban markets and affluent suburban areas. The franchise's impressive 4.65 average rating across thousands of customer reviews indicates consistent service quality across regions.

The geographic distribution reveals a focus on markets with high homeownership rates and strong real estate activity. Strongest performance is seen in states with substantial home renovation spending and higher median household incomes. Key success factors include proximity to affluent suburban communities, new housing developments, and areas with active real estate markets.

Ideal locations typically feature: median household incomes above $75,000, high concentration of single-family homes, active housing markets, and proximity to design districts or home improvement retail clusters. Significant expansion opportunities exist in underserved Western states and growing Sun Belt markets, particularly in areas experiencing population growth and strong housing development.

Prospective franchisees should prioritize locations near upscale residential areas with high home values and renovation activity, while considering competition from both national brands and local custom closet providers.
Total US locations
82
Franchise units
76
Corporate locations
6
Avg. sq. footage
N/A

Loading map...

Territory check

Is your territory available?

Let's find out.

try

We'll take you through a few quick questions, then Closets By Design confirms availability directly.

Availability

Financial Analysis

The numbers behind Closets By Design

Avg gross revenue$9,569,421
Investment range$154,000 – $511,000
Investment midpoint$332,500
Brand fund2.25%
Royalty7% - 7.25%
Franchise fee$20,000
Min. net worth
Min. liquid capital
Closets by Design requires an investment range of $154,000 to $511,000, offering a lower entry point than the sub-sector average minimum of $278,663 while maintaining a maximum investment well below the sector's average ceiling of $1.38 million. This positioning provides accessible entry into the expanding home organization market, driven by increased homeowner focus on maximizing living spaces and remote work trends.

With 82 active units established since 1982, the system demonstrates over four decades of operational refinement and market validation. The franchise reports total system gross revenue of $9.57 million across all units, significantly outperforming when compared to the sub-sector average of $482,798. This mature franchise infrastructure suggests established operational systems, supplier relationships, and brand recognition within the custom storage sector.

The business model targets affluent homeowners seeking custom storage solutions, requiring territories with sufficient household income levels and homeownership rates. Operational complexity involves design consultation, manufacturing coordination, and installation management, suggesting ideal candidates possess project management experience or construction industry background.

Investors should evaluate territory demographics, competition from both franchise and independent operators, and seasonal demand patterns. The franchise's established presence and comprehensive service offerings from consultation through installation provide competitive positioning, though success depends on local market conditions and operator execution capabilities.
Did you know? Did you know that launching your own Closets By Design franchise - a leading custom closet and home organization business that's been transforming cluttered spaces into beautifully organized solutions for over 30 years - requires a total investment between $154,000 and $511,000, which includes the $20,000 franchise fee plus all the equipment, inventory, marketing, and working capital you'll need to start helping homeowners create their dream storage spaces?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$154K–$511K
Most common
$154,000
Minimum
$332,500
Midpoint
$511,000
Maximum

Per FDD Item 7, total initial investment ranges from $154,000 to $511,000. The midpoint $332,500 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$15M$12M$9M$6M$3MN/A
$8M
$9M
$10M
2022
2023
2024
Avg
$9M
YOY change (2023 -> 2024)
+6%

According to Item 19 of the Franchise Disclosure Document, Closets By Design has an average gross revenue of $10M. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

+14% YoY
100806040200
2017
2018
2019
2020
2021
2022
2023
2024
82 units open as of 2024 FDD+10 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Closets By Design's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Closets By Design franchise typically ranges between $154,000.00 and $511,000.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Closets By Design
Closets By Design
$10M avg revenue · 76+ US franchises

Franchises for you

Other brands in the same vertical and investment band — recommendations based on what you've explored.

Spotlight

Franchisor Image
Franzy Verified

Waterloo Turf

Home Services

Gross Revenue$2,884,652
Min Investment$121,300
Founded2021
Franchise Units42+

Spotlight

Franchisor Image
Franzy Verified

Best Option Restoration

Home Services

Gross Revenue$782,625
Min Investment$186,484
Founded2018
Franchise Units72+
Franchisor Image
Franzy Verified

Floor Crafters

Home Services

Gross Revenue$2,501,091
Min Investment$147,405
Founded2014
Franchise Units6+
Franchisor Image
Franzy Verified

Buccos Roofing

Home Services

Gross Revenue$7,737,369
Min Investment$153,950
Founded2012
Franchise Units2+
Franchisor Image
Franzy Verified

Action Exteriors

Home Services

Gross Revenue$7,577,337
Min Investment$94,750
Founded2024
Franchise Units4+
Franchisor Image
Franzy Verified

Garage Up

Home Services

Gross RevenueN/A
Min Investment$93,250
Founded2021
Franchise Units14+
Franchisor Image
Franzy Verified

More Space Place

Home Services

Gross Revenue$1,379,192
Min Investment$164,200
Founded1987
Franchise Units26+
Franchisor Image
Franzy Verified

ReCoat Revolution

Home Services

Gross Revenue$1,300,537
Min Investment$136,500
Founded2023
Franchise Units10+