Up Closets
Up Closets franchises offer custom closet systems and organizational solutions for homes and businesses. Known for design and installation services, Up Closets operates in the home organization and storage products sector.
Up Closets franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Up Closets franchised business for a Single Territory population of 500,000 ranges from $95,350 to $150,550. This includes $59,000 to $157,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is $49,000 for a territory of up to 500,000 people, with an additional $49,000 for each subsequent 500,000 of population. This payment is non-refundable and due in full upon signing the Franchise Agreement. [p.12, p.22]
What are the ongoing royalty and advertising fees?
The franchisee must pay a monthly royalty fee as specified in [p.72]. Additionally, the franchisee is required to spend at least $4,000 per month on Local Advertising, subject to reasonable increases by the franchisor, as detailed in [p.92].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the renewal process beyond mentioning provisions related to non-renewal without fair compensation under certain conditions [p.4, p.169].
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you can sell or assign your Franchise Agreement or transfer the franchised business to a third party, but this requires approval from the franchisor [p.132]. The franchisor may refuse to permit such a transfer for good cause, which is defined as including, but not limited to, unspecified factors [p.4; p.170].
On what grounds can the franchisor terminate the agreement?
According to the FDD excerpts, a franchisor can terminate the franchise agreement prior to its expiration except for good cause. Good cause includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after receiving written notice and a reasonable opportunity (no more than 30 days) to do so [p.169, p.4].
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?
You do not receive an exclusive territory; however, your territory is protected within certain limits. You have the right to operate only at the Franchised Location in your designated Territory, and the franchisor can operate or franchise other businesses outside this Territory [p.38]. The territory size and population are defined based on zip codes and demographic data, but you may face competition from other franchisees, company-owned locations, or non-traditional concepts within or outside your Territory [p.39].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training that includes instructors, training materials, and up to 10 days of training at their corporate office, which is included in the Initial Franchise Fee. Additionally, upon reasonable request or as deemed appropriate by the franchisor, they will provide additional trained representatives for phone or screenshare training and assistance, with on-site training subject to availability and requiring payment of per diem fees and travel costs [p.75]. The franchisor also maintains an Intranet where relevant information and materials are made available [p.87].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor only shares financial performance representations included as Item 19 in their FDD. According to [p.223] and [p.226], no oral, written, or visual claims regarding sales, revenues, expenses, earnings, income, or profit levels were made by any employee or person speaking on behalf of the franchisor that you relied upon when deciding to sign the Franchise Agreement. [p.227] and [p.224] further confirm this by asking if such statements were made, but providing options only for "Yes" or "No" responses without space for additional details.
What am I restricted to selling, and where must I buy supplies?
You are generally required to purchase all equipment, supplies, and computer software from approved vendors as specified by the franchisor [p.26]. Additionally, you must operate your franchise according to System Standards that regulate the types, models, and brands of required products and services [p.24]. While you may have some flexibility in what you sell, operating restrictions typically prohibit running a similar business during the term of the franchise [p.2].