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Below is an in-depth analysis and side-by-side comparison of Closets By Design vs Closet Factory including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $152,000 - $428,000 | $208,500 - $356,000 |
Franchise Fee | $20,000 | $46,500 |
Royalty Fee | 6.75% | 6.75% |
Advertising Fee | 2.25% | - |
Year Founded | 1982 | 1983 |
Year Franchised | 1998 | 1985 |
Term Of Agreement | 5 years | - |
Term Of Agreement | 5 years | - |
Renewal Fee | $5K waived if meet sales req. | - |
Business Experience Requirements |
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Experience | An ideal candidate is someone who believes in our proven process. No prior carpentry experience is necessary; instead we're looking for business leaders to execute our system. | You are not required to have closet industry experience or even know how to use a hammer. Experience managing a business successfully or having a background in sales, management or marketing can be helpful. Closet Factory requires that the franchisee participate in the day-to-day management of the business; this is not an absentee ownership business. |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | Yes/No | -/Yes |
Start-up Costs | No/No | -/Yes |
Equipment | No/No | -/Yes |
Inventory | No/No | -/Yes |
Receivables | No/No | -/Yes |
Payroll | No/No | -/Yes |
Training & Support |
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Training | We communicate regularly with our franchisees to make sure we're providing relevant, effective training and support in all areas of the business. On-The-Job Training: 56 hours Classroom Training: 64 hours | Closet Factory provides you with a total of six weeks of training for you and your staff. Two weeks of franchisee training are provided at our corporate offices. During the grand opening of your location, our sales trainer will provide you and your staff with two weeks of on-site sales, design, and administrative training. In addition, our operations trainer will spend two weeks guiding the setup of your factory and training you and your operations staff basic in manufacturing and installation. You will be provided our entire library of training materials and have access to additional resources designed to enhance the performance of the business, including ClosetWare, our proprietary master control software that is used to run each element of a Closet Factory business. On-The-Job Training: 160 hours Classroom Training: 80 hours |
Support | We're With You Every Step of the Way Similar to how you will help transform clients' homes and offices, we will help you transform your new business. Comprehensive sales, marketing and operational training is provided on an ongoing basis. Our support team will share best practices and are always available to answer your questions and help you grow. Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Field Operations Proprietary Software Franchisee Intranet Platform | Our corporate staff guides and assists you as you need it. Our in-house graphics department advertising campaigns maintain the Closet Factory brand image. Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Closets by Design offers strong, in-house marketing support with proven successful lead generation through local and national advertising programs. Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing |
Operations |
30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 5 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | Absentee Ownership Allowed Number of Employees Required to Run: 6 |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | Yes | - |
International Expansion | Yes | - |
As a franchisee of Closet Factory, you have the advantage of having joined an innovative network with more than 25 years of in-home sales and franchising experience and the power of one of the industry's most admired and recognized brands. The Closet Factory brand resonates strongly with current and potential customers. Serving most major metropolitan areas throughout the United States, Closet Factory is the style and innovation leader in its market.
Each franchise is an independent business. Your clientele will benefit by purchasing from a local, family run business that has been built with the experience and success of a national company. Our proven business platform, comprehensive training program, brand recognition, national support, and the most unique and stylish product line in the industry all contribute to a strong environment to succeed.