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Updated RecentlyThe Closet Factory vs CRATE Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of The Closet Factory vs CRATE 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 | $100,424 - $177,999 |
| Franchise Fee | $46,500 | $22,000 - $46,000 |
| Royalty Fee | 5.75% | 2%-4% |
| Advertising Fee | - | $38,500 - $42,000 annually |
| Year Founded | 1983 | 2011 |
| Year Franchised | 1986 | 2015 |
| Term Of Agreement | 5 years | - |
| Term Of Agreement | 5 years | - |
| Renewal Fee | $7K | - |
Business Experience Requirements |
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| Experience | We're looking to partner with motivated entrepreneurs who have liquid funds amounting to at least 150% of the figures listed in Item 7 of CRATE's Franchise Disclosure Document, and proper licensing. |
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Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/- |
| Start-up Costs | No/Yes | -/- |
| Equipment | No/Yes | -/- |
| Inventory | No/Yes | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | - | Ongoing |
| Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | CRATE franchisees receive ongoing training and support with everything from lead screening, marketing, sales, project management, field implementation, and security/safety procedures. CRATE's 24/7 support team offers contractors the benefit of warmed up leads and setting up initial walk-throughs. |
| Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | - |
| 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) | Our time-tested business model equips contractors with the necessary tools to offer a residential construction business which offers affordable remodeling for kitchens and bathrooms to customers wishing to implement a high-end renovation to an existing kitchen or bathroom layout. Our system is designed to maximized efficiency, as well as profit-per-workday. |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | - |
| International Expansion | 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.
About CRATE
CRATE Franchise Systems -- the franchisor of kitchenCRATE and bathCRATE -- offers home improvement specialists industry-leading solutions in lead generation and maximizing profit-per-workday while helping them deliver organized, efficient remodeling services. Each signature crate, an 8' x 16' x 8' tall container, includes all the necessary tools and materials contractors need to complete a quality remodel in as little as seven days. CRATE Franchise Systems is now expanding through a targeted franchise program. Immediate opportunities are available in California, Nevada, Arizona, and Oregon.