The Closet Factory charges a royalty fee of 6.8% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a The Closet Factory franchise is approximately 21.8% of gross sales (2025 FDD). This includes the royalty fee, a 15.0% marketing/advertising fund contribution, a $95/month technology fee, and other recurring charges.

The Closet Factory has been involved in 0 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the The Closet Factory franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

The Closet Factory offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.

The Closet Factory currently operates 92 locations (2025 FDD) (86 franchised, 6 company-owned). The system grew by 9.5% over the past year. The 3-year compound annual growth rate is 4.8%.

The 1-year franchisee turnover rate for The Closet Factory is 1.2% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the The Closet Factory FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $4.6M (average: $6.1M).

The initial franchise agreement term for The Closet Factory is 5 years (2025 FDD). The total potential term is 5 years.

The Closet Factory's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 25 miles of the former location (2025 FDD).

Yes, The Closet Factory's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD). The agreement includes a jury trial waiver.

The Closet Factory provides 91 hours of initial training over approximately 2 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

Yes, The Closet Factory provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.