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Updated RecentlyThe Closet Factory vs Melt Shop Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of The Closet Factory vs Melt Shop including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $208,500 - $356,000 | $368,240 - $698,800 |
| Franchise Fee | $46,500 | $35,000 |
| Royalty Fee | 5.75% | 6% |
| Advertising Fee | - | 2% |
| Year Founded | 1983 | 2010 |
| Year Franchised | 1986 | 2017 |
| Term Of Agreement | 5 years | 5 Years +5+5+5 |
| Term Of Agreement | 5 years | 5 Years +5+5+5 |
| Renewal Fee | $7K | - |
Business Experience Requirements |
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| Experience | Melt Shop is seeking well capitalized partners who are entrepreneurial and have a strong knowledge of their market. The ideal franchisee is a proven multi-unit operator in the restaurant industry. At this time we are not offering sub-franchises. | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/Yes |
| Start-up Costs | No/Yes | -/Yes |
| Equipment | No/Yes | -/Yes |
| Inventory | No/Yes | -/Yes |
| Receivables | No/No | -/Yes |
| Payroll | No/No | -/Yes |
Training & Support |
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| Training | - | On-The-Job Training: 224 hours Classroom Training: 24 hours |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | Co-op Advertising Ad Templates Regional Advertising Social media Website development Email marketing Loyalty program/app |
| Operations |
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) | Number of Employees Required to Run: 15 |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | Yes |
Company Overviews
About The Closet Factory
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.