Concept Description
“I could not believe what I heard when I started calling the existing owners of Closet Factory. I just kept calling more to see if this was true.
15 in total- is the number I stopped at. I spoke to 15 franchise owners.
The crazy thing was, even the owners I talked to who were not doing as well, were doing better than most other franchises TOP performers.” ~Mike
Closet Factory presents itself as a quality brand. The information below is coming directly from the reports of the current franchise owners. They are living the daily life of a franchise owner.
This is what they told us.
They said this franchise treats its franchise owners as professional independent business owners. The franchise is there for them at every turn to offer advice and support, BUT they are not dictators. They allow for professional freedom- if you as an owner feel strongly about taking your business in a slightly different direction. They give you the model, help you to execute it, and allow you to make the adjustments you need to run it the way you want. Freedom.
The franchise owners said the executives are top-notch. They are extremely professional and experienced. They commented the franchise executives take them on personal trips and spend actual time investing in the long-term relationship with the franchise owners. That’s not a normal level of connection between the franchise and the franchise owners. It’s above and beyond. A true partnership.
Hearing from the franchise owners was great, but how does Closet Factory look on paper? Looking at Closet Factory’s track record and performance, this is what we found.
- Excellent financial information about the revenue and financial performance of the existing owners is included in their Financial Performance Representations.
- The average franchise owner has been in business for 17 years
The services provided to customers are described as in demand. Especially now, the Home Services industry is growing. “In fact, the share of consumer interest in the home and local services is up 24% between March 1 and August 31 (2020), relative to all categories on Yelp, compared to the same time last year.” More people are spending time in the home and redirecting their money to it. Closet Factory’s products are something customers LOVE to buy and get that “WOW” factor – so the customer interaction is enjoyable. When customers are happy, so are employees and so are owners – like you.
Closet Factory creates custom, beautiful, built-in home organization systems for every area of the home or office. They have products for every customer – from the more affordable side to custom wood high-end closets and cabinetry.
Their specialty lies in their operations systems. They know how to take a complicated manufacturing process, and make it simple, efficient, and easy for you and your employees to learn.
Our clients report satisfaction with our products.
Our proprietary sales process presents options to clients during the consultation.
The brand is described as an admired and recognized brand within the franchising industry.
The product range is described as broad to meet customer needs and preferences.
Testimonials
“I lead a blessed life. When we opened our business in 1992, we made a sale the very first day and we have been able to grow ever since. Since we started, we have helped over 70,000 people, and last year alone, we did 160 installations every month. It is a great business; it is not a fad. There is a need for storage solutions that really help people, and we are so versatile in what we can do. There are so many opportunities to grow your business. The sky is the limit.”
-Mark Lestikow, Owner of a Closet Factory
“First and foremost, the market is growing. The home-organization industry is growing every year and that won’t slow down anytime soon. With Closet Factory, the infrastructure is there, the support is stellar, the operating platform is state-of-the-art, and it helps you run your business and grow revenue. Most importantly, the franchise owners are there to support you. This is what makes Closet Factory really special. What the leadership has done by putting together a group of franchisees who succeed on their own and with each other, who work well together, really helps you in this business – especially when you are new. We are an added layer of support.”
-Steve Newman, Owner of a Closet Factory in Florida
“The thing I like about most Closet Factory is the people. The money has been good, the opportunity to own my own business has been very rewarding, but it is the friendships I have made that matter to me most. The demand never seems to end, and it is incredibly rewarding to help people by doing the job that you promised to do. If you are going to invest in this business you have to have a passion to be successful. You have to have fire in your belly. It is very important to have that level of energy and intensity. You have a support network around you that makes it easier. You do not have to have a sales or construction background or have an MBA to be successful, you have the support of a brand that is getting stronger every day behind you.”
-Jeff Bruzzesi, Owner of a Closet Factory in Virginia
“As someone who has installed our services everywhere I have lived, I believe that Closet Factory really has the best product. We are in a very unique niche. In a really good economy, our customers come to us for luxury solutions for their home offices or entertainment centers. When the economy is slow, we are a necessity because people cannot afford to buy bigger homes. We always ask, ‘How do we make your life easier? How do we make your morning easier?’ We really spend the time and energy to build a relationship with the client because the first project is a prelude to future projects. This is a great business to own in any economy.”
-Dave Rosenberg, Owner of a Closet Factory in California
Unit Option
Single
Background
FDD Franchised Units: 92
Corporate Owned Units: 0
Projected New Units: 4
Year Established: 1983
First Year Franchised: 1985
Type of Business: Franchise
Hours of Operation: Regular Business Hours
Number of Employees: Medium (6-20)
History:
How Three Key Ideas Blossomed Into the Brightest Brand in the Home Organization Industry
More than 35 years ago Closet Factory home organization franchise became a leader in the industry by promoting a floor-based closet system instead of conventional wall-suspended systems. We’re still in that leadership position, and all of our competitors are still trying to follow in our footsteps.
When John La Barbera founded Closet Factory in 1983, the home organization industry was in its infancy. While other brands also saw the tremendous potential demand for custom closets and home organization solutions, La Barbera saw an opportunity to apply three fundamental business principles to create a powerful business model.
“What really makes us a compelling business opportunity is the fact that our business model relies on fundamental criteria that maximize the probability of success.” He says, “I wanted a business that was low technology so as not to be made obsolete overnight when technology inevitably advanced. I wanted to be in an industry that was highly fragmented so that no single competitor dominated the industry. I wanted to be in consumer marketing rather than in an industrial or commercial environment so that superior marketing skills and product differentiation could provide a competitive edge and lessen the effect of price competition.
Closet Factory changes the industry it continues to lead.
By combining La Barbera’s fundamental business principles together with vertical integration; a business model that was inherently cash flow positive; and, a highly differentiated product of floor-based solutions, Closet Factory landed in the position of leading a rapidly growing industry.
Availability
Territories: United States, Canada: Registered
Financials
Liquidity: $500,000
*Investment Range: $531,500 - $903,500
**Average Investment: $600,000 - $800,000
Provided by the Franchisor
Minimum Net Worth: $2,000,001 to $5,000,000
6 Month Cash: $150,001
Franchise Fee: $65500
Royalty: 6.75%
Royalty Description: 6.75% of Gross Receipts (minimum $975/week)
Advertising: Up to 15% of Core Receipts on local marketing (exact amount set annually by franchisor, net of Marketing Fund contribution)
Ramp-Up: 7 to 9 months
Passive Ownership: Passive Ownership NOT Allowed
Passive Ownership means the owner is working 15 hours or less per week in the business.
Training, Support and Assistance
Co-Operative Advertising: N/A
Site Selection Assistance: Available
Lease Negotiation Assistance: Available
Length of Training: 6 weeks
Training Description:
Closet Factory offers training that is unmatched in the industry and completely tailored for your success. Newly awarded franchise owners will take part in a six-week (two in Dallas and four at your facility) training program, which is exclusive to Closet Factory. They will help you set up your factory and train your operations, production, installation, and sales staff. Special emphasis is placed on sales, management, manufacturing, software, and daily operations, so you have the training you need to achieve financial success.
Operational and Marketing Tools:
Our franchise team, located at our corporate headquarters in Dallas, is always available to provide ongoing support in business. Additionally, you have the added support of our entire franchise network, so no matter what the issue, someone is always on hand to provide the right support and solutions. Our proprietary software tracks every aspect of the business for you and our on-demand tools (online Academy, department manuals, planning tools, one-on-ones, etc.) provide that additional support and training to help you succeed.
We also provide ongoing marketing solutions that are unparalleled in the industry. In fact, our corporate team has a dedicated team of marketing professionals that will act as your in-house marketing agency. We will establish your entire digital presence, from your localized website to your targeted Pay-Per-Click advertising, and we will help you build your social media presence. In addition, we will provide any marketing materials you need going forward – all you have to do is make a call.
“We know that our franchisees aren’t marketing experts,” says Debbie Dykes, Creative Director with Closet Factory. “We are here to fill that role for them in order to build an effective marketing strategy that will work in their specific markets.”
Financing Assistance: N/A
