Unit Option

Single, Multiple

Background

FDD Franchised Units: 81

Corporate Owned Units: 6

Projected New Units: 5

Year Established: 1982

First Year Franchised: 1998

Type of Business: Franchise

Hours of Operation: Regular Business Hours

Number of Employees: Large (21+)

History:

Closets By Design has been in business since 1982. The current President of Closets By Design Franchising was one of the industry founders in 1982. He still remains as President of Closets By Design Franchising bringing 39 years of experience in the custom storage industry and 25 years of experience in franchising since franchising began in 1998. The current support staff has extensive franchise experience and the current Franchise Development person is a former successful CBD franchisee offering a unique, first-hand perspective for your clients.

Availability

Territories: United States, Canada: Registered

Financials

Liquidity: $200,000

*Investment Range: $154,000 - $511,000

**Average Investment: $300,000 - $520,000
Provided by the Franchisor

Minimum Net Worth: $250,001, to $500,000

6 Month Cash: $75,001

Franchise Fee: $20,000

Royalty: 6.67%

Royalty Description: The greater of (i) 7.25% of your previous month’s Gross Revenues, or (ii) the “Minimum Royalty” of $3,000 per month

Advertising: 2.25% + Local varied amount.

National Advertising: 2.25% of monthly Gross Revenues.

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.

Available Discounts

• Veterans

Discount Description: 10% on initial franchise fee

Training, Support and Assistance

Co-Operative Advertising: N/A

Site Selection Assistance: Available

Lease Negotiation Assistance: Available

Length of Training: 5-6 weeks

Training Description:

Formal Training consists of:

• 2 weeks at Corporate Headquarters in Garden Grove, CA
• 3-4 weeks on site at Franchisee Location

On-going training is provided as required.  Annual sales training seminars are conducted at the corporate office in California and a 4 day training conference is held each year in Las Vegas to review new strategies and revisit the franchise business model in every aspect of the business.

Closets By design Franchising is very proactive in working with it’s franchisees to improve every aspect of the business.

Operational and Marketing Tools:

Closets By Design Franchising is very aggressive in marketing and lead generation.  We assist franchisees in all aspects of their advertising strategies.  We manage many of the national direct mailings such as Valassis (Redplum), Val-Pak, Clipper, Money-Mailer by buying in volume and reselling to our franchisees at significantly reduced rates than if they had to purchase them on their own.  We have a very aggressive internet marketing plan with Google PPC and SEO.   We guide the franchisee every step of the way and are able to advise on “what works” and what “doesn’t work” based on 40+ years of experience in advertising in many markets.

All ads are placed by the franchisor on behalf of the franchisee and all artwork/libraries of templates….etc. are maintained and updated by the franchisor.

The CRM provided by the franchisor is second-to-none!  It tracks all key metrics of the business including clients, sales performance, installation performance, leads, advertising as well as providing Invoicing capability.  This CRM is built by CBD for CBD and is constantly updated with additional features and capabilities.

Financing Assistance: Available