CLOSETS BY DESIGN
CLOSETS BY DESIGN franchises sell home organization systems like closets and garage cabinets in designated territories. Known for custom manufacturing and installation, this California-based retail business requires a significant investment of $154,000 to $511,000.
CLOSETS BY DESIGN franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Closets by Design franchise ranges from $154,000 to $511,000 (not including real property), as stated on [p.1].
What is the initial franchise fee?
The initial franchise fee for all Closets By Design franchisees is a lump sum payment of $20,000. This fee is due and payable upon signing the Franchise Agreement. [p.12]
What are the ongoing royalty and advertising fees?
The franchisee must make minimum royalty payments or advertising contributions regardless of sales levels [p.4]. These payments are required even if there are no sales, and failure to meet these obligations could lead to termination of the franchise and loss of investment [p.4].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and the renewal process are not specified in these excerpts. [p.69] mentions that at least one year before the scheduled expiration date, a Renewal Package will be provided, but the exact term length is not detailed here.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's prior written consent. According to [p.105], you must notify the franchisor before engaging a third-party broker or proposed assignee and the franchisor has 30 days to respond after all preconditions are met. Failure to provide this notice can result in a fee of 1% of the sales price being charged by the franchisor [p.106].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not get an exclusive territory. Your territory is protected but you may face competition from other franchisees, from outlets owned by the company, or from other channels of distribution or competitive brands controlled by the company [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs that are held as needed based on new franchises joining, with each day's program beginning at a time determined by the President. Additionally, they may furnish field support services following the commencement of operation, which can include advice on various aspects of operating the business [p.78]. For financing-related training, the franchisor must approve any independent educational programs created by the franchisee and will work with them to address deficiencies if necessary [p.278].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of December 31, 2025, there were a total of 74 franchised Closets By Design Businesses (69 mature ones plus 5 in Canada) [p.48]. However, this information does not specify how many outlets have closed or been terminated. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, CBDF, does not make any financial performance representations other than the preceding ones. However, if you are purchasing an existing Outlet, they may provide actual records of that Outlet's performance [p.52]. Additionally, the franchisor can provide financial performance information only under specific conditions, such as providing actual records of an existing outlet or supplementing the information provided in Item 19 [p.48].
What am I restricted to selling, and where must I buy supplies?
This isn't specified in the excerpts. The provided FDD excerpts do not detail restrictions on what you can sell or specific requirements for where you must buy supplies.