About The Tailored Closet Franchise
The Tailored Closet is a home organization franchise offering custom storage solutions for closets, garages, home offices, pantries, and other living spaces.
The brand operates under Home Franchise Concepts LLC and has been franchising since 2006.
Each franchise territory provides in home design consultations and professional installation of custom organization systems.
The Tailored Closet Franchise Cost & Fees
Minimum Investment
$179K
Average Investment
$233K
Maximum Investment
$286K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $19,950 | One-time payment upon signing |
| Royalty Fee | 4.0% - 7.0% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Greater of 1% of Gross Revenue or $500 per month | National brand fund |
| Total Investment Range | $179,220 – $286,175 | Includes build-out, inventory, working capital |
The investment range of $179K–$286K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.0% - 7.0% of Gross Revenue) and marketing fee (Greater of 1% of Gross Revenue or $500 per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $19,950 | $19,950 |
| Initial Territory Fee | $55,000 | $55,000 |
| Travel and Living Expenses While Training | $1,000 | $1,500 |
| Office/Warehouse (Deposit and 3 months rent) | $3,000 | $9,500 |
| Vehicle | $10,000 | $55,000 |
| Trailer | $0 | $10,000 |
| Forklift | $1,990 | $16,425 |
| Computer Equipment | $1,500 | $2,500 |
| Credit Card Processing Technology | $30 | $500 |
| Auto Insurance | $500 | $2,400 |
| Commercial General Liability Insurance | $500 | $2,400 |
| Contractor’s License and Bond | $0 | $1,500 |
| Professional Fees | $750 | $1,500 |
| Initial Marketing | $10,000 | $15,000 |
| Initial Inventory | $5,000 | $8,000 |
| Additional Tools and Supplies | $15,000 | $20,000 |
| Additional Funds – Before Opening and First 3 Months | $55,000 | $65,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $19,950 initial franchise fee for first territory plus $5,000 transfer fee for each additional territory (if selling to new franchisee); $5,000 transfer fee per territory (if selling to existing franchisee) |
| Renewal Fee | $5,000 |
| Technology Fee | Currently $300 per month |
| Audit Fee | Cost of inspection or audit |
| Insufficient or Late Payment Fee | $300 |
| Convention Fee | Currently $720 plus travel, accommodation and some meals (not to exceed $1,500 annually) |
| Optional Meetings and Trainings | Generally $100 to $1,500 plus travel, accommodation and some meals |
| Additional Training Requested by You | Currently $500 per day, plus travel and expenses |
| Insurance | You must reimburse our costs |
| Costs and Attorneys’ Fees | Varies |
| Indemnification | Varies |
| Additional Territory Fee | An amount equal to the then-current initial Territory Fee |
| Key Account Referral Fees | Negotiated individually, percentage of job or fee |
| Encroachment Payment | 100% of your gross sales in another franchise’s territory |
| Transfer Lead Referral Fee | Our then-applicable lead referral fee, currently $15,000 or the amount of any broker fees that we must pay a third party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 days in-person Academy training plus virtual pre- and post-Academy training (Total 106.25 hours) |
| Classroom Training | 106.25 |
| On-the-Job Training | 0 |
| Training Location | HFC Experience Center in Coppell, Texas (in-person) and virtually |
| Additional Training | Franchisor may require attendance at additional training courses, seminars, conferences, or other programs at no charge, but franchisee pays travel, hotel, and meals. Optional staff training courses may be offered for a reasonable fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Approximately 100,000 households |
| Description | The territory is defined by U.S. Postal Service ZIP Codes. Franchisor will not establish another franchised business or compete with the franchisee in their territory using the System and Marks. Franchisees are prohibited from doing business in other franchisees' territories. Franchisee may operate in 'Gray Area' (adjoining unassigned areas) but these operations are subject to sale or company-owned operations. Franchisor reserves the right to make sales in the territory via Internet, catalog, or direct marketing without compensation to franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 consecutive 5-year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | Pay renewal fee, sign current franchise agreement, not be in default, make necessary upgrades to franchised business. New agreement may have materially different terms. |
| Transfer Fee | $19,950 initial franchise fee for first territory plus $5,000 transfer fee for each additional territory (if selling to new franchisee); $5,000 transfer fee per territory (if selling to existing franchisee) |
| Transfer Conditions | Proposed assignee must complete application, fully disclose terms, demonstrate skills, qualifications, and economic resources, assume obligations, and pay fees. Franchisee must be in full compliance with obligations to franchisor. Franchisor has right of first refusal. |
| Termination for Cause | Franchisor can terminate immediately for material misrepresentations, abandonment, repeated failures to comply, failure to pay fees, conviction of felony/misdemeanor involving moral turpitude, or if continued operation poses imminent danger to public health/safety. For curable defaults not listed in Section 10.2, franchisee has 30 days to cure (or longer if required by law or specified by franchisor). |
| Non-Compete Period | During the term of the franchise and for 2 years after expiration/termination |
| Non-Compete Details | During the term, franchisee may not directly or indirectly engage in any competing business within the U.S., its territories, commonwealths, or any country/province/state/geographic area where Franchisor has used, sought registration of, or registered the Marks. For two years after expiration/termination, franchisee may not engage in any competing business within the former territory or within a 25-mile radius of any THE TAILORED CLOSET™ business in existence or under development as of the expiration date. This does not apply to ownership of less than 1% beneficial interest in publicly held companies. Franchisor may reduce the scope of the covenant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor prefers active owner participation. If the franchisee does not operate the business themselves, they must employ at least one full-time manager. This manager must complete initial training, devote full-time attention to the business, maintain confidentiality, and conform to non-compete covenants. If the franchisee is a company, individuals with direct or indirect control or beneficial interest must sign a Personal Covenant and Guarantee, including spouses if married. |
| Required Suppliers | Franchisee must offer only approved products/services and purchase components for organizing units and accessories only from franchisor, affiliates, or approved suppliers. Materials with THE TAILORED CLOSET™ marks must also be from franchisor or approved suppliers. |
| Supply Restrictions | Franchisor may change specifications, authorized products/services, and designate mandatory products. Franchisor may impose purchasing restrictions to control quality, consistency, and facilitate volume-discount pricing. Franchisor approves suppliers based on quality, reputation, prices, reliability, financial capability, and customer relations. Approval may be conditioned on supplier discounts or contributions to advertising costs. Franchisor estimates 90% of initial purchases and 30%-50% of total operating purchases will be subject to these restrictions. |
| Franchisor Revenue from Suppliers | $42,439 (0.67% of total revenue) from advertising and promotional materials in 2021. Received $1,891,964 (29.7% of total revenue) in rebates/allowances from suppliers in 2021, generally 3%-7% of purchase price. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor offers financing for the Initial Franchise Fee and part of the Territory Fee ($44,000 total). No down payment is required. The term is 60 months at 9% interest, with monthly payments of $913.37. No prepayment penalty. Default may result in loss of franchise, unpaid balance, attorney fees, and costs. Obligor waives notice. Financing is secured by a General Security Agreement on substantially all of the franchisee's assets. Franchisor may sell the promissory note at a discount rate to a third party. |
The Tailored Closet Franchise Earnings — Item 19
Average Revenue
$410K
Median Revenue
$262K
Revenue Range
$109K – $4.8M
Sample Size
55 units
Past financial performance does not guarantee future results. Individual results will vary.
The Tailored Closet Litigation & Risk Flags
Clean Litigation RecordThe Tailored Closet has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Tailored Closet System Growth
Total Units
164
Franchised
164
Company-Owned
0
The Tailored Closet currently operates 164 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 16 | 20 | 156 |
| 2020 | 10 | 11 | 155 |
| 2021 | 15 | 6 | 164 |
Transfers: 0 | Closures: 5
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$6.4M
Net Income
$175K
Total Assets
$10.3M
Audited by BDO USA, LLP for year ending December 31.
The Tailored Closet Franchise — FAQ
The total investment to open a The Tailored Closet franchise ranges from $179,220 to $286,175, per their Franchise Disclosure Document. This includes the initial franchise fee of $19,950. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Tailored Closet charges a royalty fee of 4.0% - 7.0% of Gross Revenue of gross sales, plus a Greater of 1% of Gross Revenue or $500 per month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Tailored Closet Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from The Tailored Closet to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, The Tailored Closet franchise owners report average revenue of $410K and median revenue of $262K. This is based on a sample of 55 units. Past performance does not guarantee future results.
The Tailored Closet has been franchising since 2006. The FDD shows an investment range of $179,220-$286,175, a 4.0% - 7.0% of Gross Revenue royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $19,950 and the total investment ranges from $179,220 to $286,175 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from The Tailored Closet and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Tailored Closet or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com