Franchise Facts Report → brands → Closet Factory
Closet Factory franchise — is it worth it?
Low risk Growing network Item 19 disclosed
Closet Factory is a home services franchise specializing in custom closet solutions, requiring an initial investment between $531,500 and $903,500.
Everything below is free, read straight off Closet Factory's registered filing, with where the numbers land against home services peers. Weighing Closet Factory against other options? Get a free shortlist of franchises that fit your budget.
Figures above are as disclosed in Closet Factory's most recent FDD (registered 2026). Source: Wisconsin Dept. of Financial Institutions — Franchise Registration · filing 641904 — check it yourself. See every other Wisconsin-registered franchise.
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Tell us your budget and the industries you're open to. We'll match you with 5–10 franchises whose own FDDs fit — ranked by earnings disclosure, growth and closure rate — and email you the list. Closet Factory will be on it if it fits.
How much does a Closet Factory franchise make?
Closet Factory is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The headline figure is $44,577,988 in average unit revenue — read it alongside what Item 19 says about which units it covers (often only mature or top-performing locations). See every home services brand that discloses earnings in the Home services & home improvement franchises with disclosed Item 19 earnings ranking.
Closet Factory franchise profit vs. revenue
Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come Closet Factory's 6.75% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Closet Factory franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Closet Factory franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure. On $44,577,988 of revenue, a 6.75% royalty alone is about $3,009,014 a year before any other cost.
Closet Factory lawsuits & legal history (FDD Item 3)
Closet Factory's most recently filed Franchise Disclosure Document (2026) discloses no litigation in Item 3. That is a real signal rather than a gap: the FTC Franchise Rule requires a franchisor to disclose material litigation involving itself, its predecessors, parents, affiliates and management, so an empty Item 3 in a current filing means there was nothing it was required to report. It is worth reading alongside the churn numbers — a system can have a clean Item 3 and still be losing franchisees, which is what Item 20 shows.
Closet Factory closures & failure rate
Before you sign, Closet Factory will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what Closet Factory's most recent filing shows, and whether it's normal for a home services of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. Closet Factory's latest tables show a growing franchised network. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 1.2%, against a home services median of 5.1% — at or better than the category. Net franchised outlets moved +8 to 92 in the latest reported year.
Who owns Closet Factory?
Closet Factory's franchise is offered by The Closet Factory Franchise Corporation — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2026), and the entity a franchisee actually signs with. That name comes straight off the filing at WI DFI; it identifies the franchisor, not necessarily the ultimate parent company behind it.
Home services franchises at a similar investment level
Anyone weighing Closet Factory is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
Closet Factory franchise — frequently asked
Who owns Closet Factory — who is the franchisor?
Closet Factory's most recently filed FDD (2026) names The Closet Factory Franchise Corporation as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a Closet Factory franchise cost?
Closet Factory's most recently filed FDD (Item 7) puts the total estimated initial investment at $531,500 – $903,500, with an initial franchise fee of $65,500 and a 6.75% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. Against home services peers it sits in the bottom quartile (median $162,725).
How much profit does a Closet Factory franchise make?
Closet Factory discloses unit earnings in Item 19, but that figure is revenue — sales — not profit. Royalties (6.75% of gross for Closet Factory), the ad fund, rent, payroll and supplies all come out of it, and no FDD discloses what an owner nets. Any Closet Factory franchise profit number quoted elsewhere is an estimate. The headline figure Closet Factory discloses is $44,577,988 in average unit revenue.
Does Closet Factory disclose financial performance (Item 19)?
Yes — Closet Factory reports unit-level earnings in Item 19. The headline figure is $44,577,988 in average unit revenue, as the franchisor states it.
Are there lawsuits against Closet Factory?
No — Closet Factory's most recently filed FDD (2026) discloses no litigation in Item 3. Franchisors must disclose material litigation involving themselves, their predecessors, parents, affiliates and management, so an empty Item 3 is a genuine signal rather than an omission.
Is Closet Factory a good franchise to buy?
Nobody can answer that from Closet Factory's numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against home services peers and against your own budget. Our read on this filing is low risk. Every figure behind that read is on this page for free. If you're comparing options, the free shortlist on this page matches you with 5–10 franchises that fit your budget and industry.
Get a free email when something changes on Closet Factory or home services: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same state registries this page is built on.