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Below is an in-depth analysis and side-by-side comparison of American Leak Detection vs The 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 | $76,755 - $259,550 | $208,500 - $356,000 |
Franchise Fee | $29,500 - $120,000 | $46,500 |
Royalty Fee | 6-10% | 5.75% |
Advertising Fee | - | - |
Year Founded | 1974 | 1983 |
Year Franchised | 1984 | 1986 |
Term Of Agreement | 10 years | 5 years |
Term Of Agreement | 10 years | 5 years |
Renewal Fee | - | $7K |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/No |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 40 hours Classroom Training: 40 hours Additional Training: Annual convention | - |
Support | Newsletter Meetings/Conventions Toll-Free Line Online Support Field Operations Proprietary Software Franchisee Intranet Platform | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising National Media Regional Advertising SEO Website development | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
Franchise can be run from home. International franchisees required to buy multiple units/master licenses; 7% of all franchisees own more than one unit Number of employees needed to run franchised unit: 2 - 3
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)
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International franchisees required to buy multiple units/master licenses; 30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | Yes | No |
International Expansion | Yes | Yes |
John LaBarbera founded The Closet Factory in a small industrial space in Los Angeles in 1983. The company started out with six employees customizing closets, offices, garages and pantries, and now has more than 100 employees at its Los Angeles headquarters. There are also 11 other factories around the world.
The Closet Factory works with homeowners, contractors and interior decorators, installing closets, entertainment centers, pantries and shelves for offices and garages.
You are unique and so are your needs. No one knows that better than The Closet Factory. When it comes to creating custom solutions that are imaginative, well organized and satisfy your design sensibilities, The Closet Factory believes the process must begin with a partnership between you and one of our designers.