How much does a Closets by Design franchise make?

The average Closets by Design unit reported $10,175,625 of revenue in the 2026 FDD, and the median reported $7,666,809. The filing discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 19.2% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid,

Breakdown

Closets by Design franchise unit economics

Closets by Design franchisees sell and install custom closets, garage cabinets, home offices and wall beds, running in-home design appointments and manufacturing from their own facility across a territory of typically 200,000 to 250,000 households. Across 60 businesses open a year or more the 2025 average was $10,175,625 of sales with a median of $7,666,809, at a 52.28% closing ratio and a $5,946 average sale. Advertising must reach 12% to 16% of the prior year’s revenue.

By Scott Engler · Averan Advisors · Source: CBD Franchising, Inc., 2026 Franchise Disclosure Document (FDD) · Updated 22 September 2026

Where these figures come from

Primary source: CBD Franchising, Inc., 2026 Franchise Disclosure Document
Items read: Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
Population: 60 of 84 locations
Our calculations: Marked on the page with an asterisk. Method
Last reviewed: 26 September 2026

Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.

Key idea

An in-home appointment is worth $3,109 here, a $5,946 average sale at a 52.28% close. The top quartile bills 5.68 times the bottom while its average sale is only 5% higher, so the whole range is appointments run. Against that, advertising must reach 12% to 16% of last year’s revenue, which puts the total load at 19.25% to 23.25% of sales.

Units reporting60 of 69 businesses, 2025

Average annual sales$10,175,625

Closing ratio52.28%

Average sale$5,946

An appointment is worth $3,109 of revenue.A $5,946 average sale at a 52.28% closing ratio *, which makes the average business about 3,273 appointments a year, or 63 a week.
The top quartile runs 4.9 times the appointments of the bottom.About 6,073 against 1,236 *, on an average sale only 5% higher and a closing ratio 5.19 points higher, so volume instead of skill accounts for 5.68 times the revenue.
Advertising must reach 12%, 14% or 16% of last year’s revenue.16% below $2 million, 14% from $2 million to $7 million and 12% above it, with the brand fund counted inside. So the whole load is 19.25% at the average business and 23.25% at the smallest *.
A third test ratchets the requirement 8% a year.Last year’s advertising multiplied by 108% and divided by 12, capped at 20% or 23% of prior-year revenue. So a heavy year sets a heavier minimum. Escaping it takes overspending the table minimum by 15% to 40% in every month of two consecutive years.
Sixty mature businesses average $10,175,625 and the median bills $7,666,809.22 of the 60 reach the average, which is 36.7% *, against a highest at $36,440,056 and a lowest at $1,973,175.

Top performers

What separates the top Closets by Design performers

Closets by Design splits its locations into groups instead of publishing one average. The best group averaged $20,740,033 a year. The worst averaged $3,648,287. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $7,666,809. The average was $10,175,625. More than half the system is below the number the brand quotes.

Decided before you open

Trade area and site.A 5.7× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
Territory, and how much of it is real.This model sells from a territory rather than a building, quoted at 250,000 households. Two owners with the same brand and different ground are running different businesses, and density decides how much driving sits between jobs.
What you spend to open.Opening costs $154,000 to $511,000, a 3.3× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.

Live operating levers

Visits, the operating driver.This model bills on visits. The owner watches how many visits happen, what each one is worth, and how many customers book the next one before they leave. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
Fees, and where the minimum bites.Fees run about 19.2% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.

Context you underwrite around

The reporting screen.60 of 84 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations. Anything below the sales line has to come from the franchisor or from owners you call.

Top performers

How far apart the locations are

Second

This filing does not split its locations into performance bands, so the gap between the highest and lowest Closets by Design location is not disclosed. What it does publish is on the Model and Finance tabs.

Businesses and territories

The same system, counted two ways.

Second

$9,965,981

Third

$6,348,199

All 78 territories

$7,827,404

2025 sales, closing ratio and average sale by quartile, 60 businesses open a year or more, as the brand reported it, Item 7 of the 2026 FDD
quartile	Businesses	Average sales	Median sales	Closing ratio	Average sale	Reaching the average
Top quarter	15	$20,740,033	$18,901,767	56.00%	$6,098	15, 100%
Second	15	$9,965,981	$9,915,597	52.72%	$6,189	7, 46.7%
Third	15	$6,348,199	$6,128,104	49.59%	$5,691	0
Bottom quarter	15	$3,648,287	$3,947,942	50.81%	$5,808	0
All 60 businesses	60	$10,175,625	$7,666,809	52.28%	$5,946	22, 36.7%
All 78 territories	78	$7,827,404	$5,698,104	52.90%	$5,979	24, 30.8%

Every figure is as the brand reported it. The business rows covering the 60 franchised businesses open twelve months or more and the territory row covering the 78 territories on the same test.

The quartiles weight back to $10,175,625 exactly. Four groups of 15 *, so the quarter table and the headline average describe the same 60 businesses, and both can be used together.

A business averages 1.3 territories. 90 territories across 69 businesses *, which is why the per-territory average of $7,827,404 sits 23% below the per-business one, and why a buyer of one territory should read the territory row.

The closing ratio changes little, ranked by sales. 56.00%, 52.72%, 49.59% and 50.81% (a 6.4-point group, the bottom quarter closes better than the third) so the close rate is close to a constant in this system.

The average sale moves even less. $6,098, $6,189, $5,691 and $5,808. The second quartile has the highest ticket of all four, and the range top to bottom is 5% *.

Every business in the top quarter beats its own quartile average, and zero do in the bottom two. 15 of 15 against 0 of 15 twice.

What one appointment is worth

Everything here reduces to appointments run.

What each quartile’s figures imply about volume. The sales, closing ratio and average sale are as the brand reported it and the job, appointment and value columns are *Averan calculation
quartile	Average sales	Average sale	Jobs a year *	Closing ratio	Appointments a year *	Value of an appointment *
Top quarter	$20,740,033	$6,098	3,401	56.00%	6,073	$3,415
Second	$9,965,981	$6,189	1,610	52.72%	3,054	$3,263
Third	$6,348,199	$5,691	1,115	49.59%	2,249	$2,822
Bottom quarter	$3,648,287	$5,808	628	50.81%	1,236	$2,951
All 60	$10,175,625	$5,946	1,711	52.28%	3,273	$3,109

Sales, closing ratios and average sales are as the brand reported it and the job, appointment and appointment-value columns divide them out, marked * throughout.

An appointment is worth $3,109 across the system. $5,946 of average sale at a 52.28% close *, so a franchisee looking for another million dollars of revenue is looking for 322 more appointments, which is six a week.

The average business runs about 63 appointments a week. 3,273 a year *, against 117 a week in the top quartile and 24 in the bottom, which is the honest description of what separates them.

Closing four points better is worth $221 an appointment. Moving from the system’s 52.28% to the top quartile’s 56.00% at the same $5,946 ticket *, which on 3,273 appointments is $723,959 of revenue. So the close rate is worth real money even though it accounts for little of the quarter range.

Raising the ticket by $250 is worth $131 an appointment. At the system close rate *, less than half what the same effort on close rate delivers, which is why design pricing is the second lever here.

The bottom quartile closes better than the third and bills 43% less. 50.81% against 49.59%, on $3,648,287 against $6,348,199 *, final proof that the constraint in this model is lead flow.

Advertising costs that only rise

Three tests, and you pay whichever is highest.

Franchise fees by revenue group. The rates are as the brand reported it and the dollar figures are *Averan calculation
Sales group	Royalty at 7.25%	Advertising rate	Advertising	Total	Share
$1,973,175, the lowest-selling business	$143,055	16%	$315,708	$458,763	23.25%
$3,648,287, the bottom quartile	$264,501	14%	$510,760	$775,261	21.25%
$6,348,199, the third quartile	$460,244	14%	$888,748	$1,348,992	21.25%
$7,666,809, the median	$555,844	12%	$920,017	$1,475,861	19.25%
$10,175,625, the average	$737,733	12%	$1,221,075	$1,958,808	19.25%
$20,740,033, the top quartile	$1,503,652	12%	$2,488,804	$3,992,456	19.25%

Both rates are as the brand reported it and every dollar figure is marked. Applying each group’s advertising rate to the same year’s revenue although the requirement is set on the prior year’s.

Crossing $7 million of revenue cuts the advertising rate from 14% to 12%. Worth $126,964 a year at the third quartile’s revenue *, so the group threshold is a genuine operating target.

The brand fund sits inside the requirement. 2.25% of revenue in 2026, rising to 2.50% in 2027 and 2.75% in 2028 and after, all counted toward the 12% to 16%. So the fund increases shift money from the franchisee’s own media buying to the brand’s.

The ratchet is the clause to plan around. Last year’s total advertising multiplied by 108% and divided by 12 becomes a monthly minimum, capped at 23% of prior-year revenue up to $3 million and 20% above it. So a good year spent heavily raises next year’s obligation by 8% whatever revenue does.

Escaping the ratchet means overspending the table every single month. By 15% under 500,000 households, 25% to a million, 35% to 1.5 million and 40% above that, in every month of both the previous and the succeeding year, a narrow door, and missing one month closes it.

The royalty has a $36,000 a yearly minimum. $3,000 a month, which 7.25% overtakes at $496,552 of revenue *, far below the lowest-selling reporting business at $1,973,175, so the minimum is a start-up protection.

Territory and the system

Twenty-two opened, four left.

Franchised outlet counts for 2023 to 2025, as the brand reported it, with the net column added, Item 20 of the 2026 FDD*Averan calculation
Year	At start	Opened	Terminations	Ceased, other	At end	Net *
2023	66	10	0	0	76	+10
2024	76	3	0	0	79	+3
2025	79	9	2	2	84	+5

Every figure is as the brand reported it and the net column is marked. Across a system that grew from 66 to 84 territories in three years.

The system grew 27.3% in three years and lost four outlets in total. All four of them in 2025 *, two terminations and two ceasing for other reasons, against 22 openings across the period.

A territory costs $18,000 or $1,000 for each 10,000 households, whichever is greater. On top of a $20,000 franchise fee, so a typical 200,000 to 250,000-household territory costs $20,000 to $25,000 of territory fee, and the ceiling is normally 350,000 households.

The territory is expressly non-exclusive. The brand will keep another franchise out of it while the agreement is in compliance and will keep any public-access location out of it. But it and its affiliate reserve the right to serve customers there, so the protection is about premises.

Nine of the 69 businesses and 12 of the 90 territories are too new to report. Open less than twelve months at year end, so 13% of businesses and 13% of territories sit outside the figures on this page *.

The affiliate runs six businesses of its own, excluded entirely. So every figure here describes franchised operations, and the brand’s own results stay out of the comparison.

Questions we get asked

Questions an owner asks.

What does a Closets by Design business bill?

Across 60 businesses open a year or more, the 2025 average was $10,175,625 and the median $7,666,809, at a 52.28% closing ratio and a $5,946 average sale. 22 of the 60 reached the average. The highest billed $36,440,056 and the lowest $1,973,175. Counted by territory instead, the 78 mature territories averaged $7,827,404 with a median of $5,698,104.

What does the brand take?

7.25% of gross revenues in royalty, or $3,000 a month if greater. Advertising must reach the highest of a dollar table set by households and months, a percentage of the prior year’s revenue (16% below $2 million, 14% from $2 million to $7 million, 12% above) and last year’s advertising multiplied by 108%. The brand fund of 2.25% counts inside that. On our reading the total is 19.25% to 23.25% of sales.

What is an appointment worth?

$3,109 on our reading, a $5,946 average sale at a 52.28% closing ratio. That makes the average business about 3,273 appointments a year, or 63 a week. 117 a week in the top quartile and 24 in the bottom.

Why does the top quartile bill so much more?

Appointments. It bills 5.68 times the bottom quartile on an average sale 5% higher and a closing ratio 5.19 points higher, which implies about 4.9 times the appointments. The bottom quartile actually closes better than the third quartile while billing 43% less, so the constraint is lead flow.

How does the advertising ratchet work?

The third test sets a monthly minimum equal to last year’s total advertising multiplied by 108% and divided by 12, capped at 23% of prior-year revenue up to $3 million and 20% above it. It is waived only if in every month of the previous year your local spend exceeded the table minimum by 15%, 25%, 35% or 40% depending on household count. You keep doing so in every month of the following year.

What does a territory cost?

A $20,000 franchise fee plus a territory fee of $18,000 or $1,000 for each 10,000 households, whichever is greater. Territories typically hold 200,000 to 250,000 households and normally stop at 350,000. Additional households beyond the $18,000 minimum cost $1,000 for each 10,000.

How many territories does a business run?

About 1.3 on average, 90 territories across 69 businesses. That is why the per-business average of $10,175,625 sits well above the per-territory average of $7,827,404. A buyer of a single territory should benchmark against the territory figures.

Which two numbers should run monthly?

Appointments run against 63 a week, since each one is worth $3,109. And advertising spend against the rate for your group, because the third test makes this year’s spend next year’s minimum whatever revenue does.

What this filing does not disclose

No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.

Questions worth putting to Closets by Design

The filing answers what it answers. These are the gaps an owner or a buyer should close directly.

What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
At what level of sales do the minimum charges stop applying and the percentage take over?
How many Closets by Design locations closed, were sold, or changed hands last year, and why?

Part of our Home & Commercial Services Franchise Finance guide and the Remodel, Garage And Closets Franchise Finance guide · Āveran Franchise Resource Center

Run your own numbers.

The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.

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What is an appointment costing you?

A structured review of your unit economics, cash forecast. Reporting, built around the $3,109 an appointment is worth, the advertising group you sit in. What the 108% ratchet does to next year’s budget.

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Where this sits

the franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners

The same business, other brands

Closets by Design reads against the rest of the remodel, garage and closets group: Archadeck Outdoor Living · Bath Tune-Up · DreamMaker Bath & Kitchen · Kitchen Tune-Up · Precision Garage Door Service · The Tailored Closet. The remodel, garage and closets guide compares all of them on the same figures.

Questions owners ask next

The figures above raise these, and each one is answered on its own page.

At what level of sales does a minimum fee stop costing me more than the percentage?How royalty, ad fund and minimums actually work on a monthly statement.
How much cash do I fund before a new location covers its own costs?A 13-week forecast for the months before break-even.
My payroll percentage keeps climbing. Is that a payroll problem?Usually it is a revenue problem wearing a payroll costume.
At what point do spreadsheets stop coping?What changes at around ten units, and why lenders care.
I run several locations. Which ones actually make money?Location-level contribution, and what it takes to see it.

Where to next

Compare brands, every brand in the library on one screen
Item 19, how to read Item 19 of an FDD
What Items 5 and 6 must disclose
Checking the franchisor’s own finances
Fractional CFO, for the forecast behind a second location and the cash plan that carries it
Bookkeeping for franchise owners, what this looks like when someone else keeps the books
Āveran Franchise Resource Center, every breakdown in the library
Bookkeeping, monthly close built around the way your brand reports
Controller, when the numbers need someone reading them as well as recording them

Scott Engler

Founder & Principal, Averan Advisors

Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team. More about the team →

Closets by Design franchise unit economics

How much does a Closets by Design franchise make?

What separates the top Closets by Design performers

Decided before you open

Live operating levers

Context you underwrite around

How far apart the locations are

The same system, counted two ways.

Everything here reduces to appointments run.

Three tests, and you pay whichever is highest.

Twenty-two opened, four left.

Questions an owner asks.

What does a Closets by Design business bill?

What does the brand take?

What is an appointment worth?

Why does the top quartile bill so much more?

How does the advertising ratchet work?

What does a territory cost?

How many territories does a business run?

Which two numbers should run monthly?

Questions worth putting to Closets by Design

Run your own numbers.

What is an appointment costing you?

Questions owners ask next

Where these figures come from.

What happens next

Closets by Design franchise unit economics

How much does a Closets by Design franchise make?

What separates the top Closets by Design performers

Decided before you open

Live operating levers

Context you underwrite around

How far apart the locations are

The same system, counted two ways.

Everything here reduces to appointments run.

Three tests, and you pay whichever is highest.

Twenty-two opened, four left.

Questions an owner asks.

What does a Closets by Design business bill?

What does the brand take?

What is an appointment worth?

Why does the top quartile bill so much more?

How does the advertising ratchet work?

What does a territory cost?

How many territories does a business run?

Which two numbers should run monthly?

Questions worth putting to Closets by Design

Run your own numbers.

What is an appointment costing you?

Questions owners ask next

Other remodel, garage and closets brands

Volume against price, in other categories

Where these figures come from.

What happens next