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Breakdown

Closets by Design franchise unit economics

Closets by Design franchisees sell custom closets, garage cabinets, home offices, pantries and wall beds through in-home design appointments, and build and install them from their own manufacturing facility.

Businesses reporting60
Average sales$10,175,625
Total investment$154,000–$511,000

Closets by Design franchise at a glance

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.

Closets by Design franchisees averaged $10,175,625 of sales in fiscal 2025, with a median of $7,666,809, according to Item 19 of Closets by Design’s 2026 FDD, issued 30 April 2026. The 60 in that group are 71%* of Closets by Design’s 84 locations. Fees paid to Closets by Design come to about 9.5%* of sales.

  • A Closets by Design franchise costs $154,000 to $511,000 to open, including a $20,000 initial franchise fee, according to the brand's 2026 FDD.
  • Closets by Design charges a royalty of 7.25% of sales and a 2.25% brand fund contribution.
  • Closets by Design reported 84 franchised locations in its 2026 FDD.
  • 36.7% of reporting Closets by Design locations reached the average.
  • Work out Closets by Design's fees at your own sales with the minimum fee calculator.

These figures come from Closets by Design's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.

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By Scott Engler · Averan Advisors · Source: CBD Franchising, Inc., 2026 Franchise Disclosure Document (FDD) · Updated 28 October 2026

  1. 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.
  2. The top quartile runs 4.9 times the appointments of the bottom.That is about 6,073 appointments against 1,236 *, on an average sale only 5% higher and a closing ratio 5.19 points higher, so volume accounts for most of the 5.68 times difference in revenue.
  3. Advertising must reach 12%, 14% or 16% of last year’s revenue.The requirement is 16% below $2 million, 14% from $2 million to $7 million and 12% above it, with the brand fund counted inside. The 7.25% royalty and the 2.25% fund come to 9.5% of sales paid to the brand at every reporting business *, and the owner spends the rest of the requirement.
  4. A third test raises the requirement 8% a year.It is 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.
  5. 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.

Run your own numbers.

The Franchise Numbers Check 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. It 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?

We review your unit economics and cash forecast and build your reporting 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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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.

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 →

Where these figures come from.

Every figure here comes from CBD Franchising, Inc.’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Closets by Design® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.

These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: CBD Franchising, Inc., 2026 Franchise Disclosure Document, issued 30 April 2026.

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How Averan works with Closets by Design franchise owners

Everything above came out of a filing. Doing it on your own numbers means the books have to produce the same lines: sales, wages, occupancy, fees and what is left, by location, every month. That is the work.

  1. The call takes thirty minutesYou describe the business and where the numbers are letting you down. We give you an expert view of your situation, and what we would start with. There is no pitch deck.
  2. We look at the fileYou give us read access to the books as they are. We come back with what is wrong, what it will take to fix, and whether the answer is bookkeeping, controller work, or something else.
  3. We send a written scope and a priceIt lists what we do each month, what you get, the date it lands and the fee. We agree it before anything starts, and it does not change unless you agree.
  4. We take over the books and close the first monthWe set up access and systems and enter the opening balances. The first close lands on the date in the scope, and every one after it does too.