The Tailored Closet charges a royalty fee of 5.0% 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 Tailored Closet franchise is approximately 6.0% of gross sales (2025 FDD). This includes the royalty fee, a 1.0% marketing/advertising fund contribution, a $250/month technology fee, and other recurring charges.

The Tailored Closet has been involved in 1 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

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

The Tailored Closet offers protected 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 Tailored Closet currently operates 144 locations (2025 FDD) (144 franchised, 0 company-owned). The system contracted by 11.1% over the past year. The 3-year compound annual growth rate is -5.2%.

The 1-year franchisee turnover rate for The Tailored Closet is 13.9% (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 Tailored Closet FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $329K (average: $419K).

The initial franchise agreement term for The Tailored Closet is 10 years (2025 FDD). Franchisees can renew 2 times for 5-year periods. The total potential term is 20 years.

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

The Tailored Closet provides 80 hours of initial training (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.

The Tailored Closet does not provide site selection assistance (2025 FDD). Franchisees are responsible for finding and securing their own location. The franchisor also provides technology support and systems.