The Tailored Closet franchise unit economics
The Tailored Closet franchisees design, sell and install closet and storage systems from a van. Of 66 reporting franchisees, 40 hold one territory and 26 hold several, and a single territory out-earned each of a multi-territory owner’s on all six published measures. The clearest test is that the same 13 mid-range multi-territory franchisees added 9 territories over the year while revenue for each one fell 16.46%.
- Primary source
- Organized Spaces, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 66 of 136 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.
On a like-for-like basis a single territory beats a multi-territory one on all six published measures. The cleanest test: the same 13 mid-range multi-territory franchisees went from 38 territories to 47 over the year, grew revenue 3.33%, and so earned 16.46% less from each territory they held. The 5% royalty has a $15,000 minimum for every territory, which makes that ground cost the same whether it produces or leaves.
- The same 13 franchisees added 9 territories and earned 16.46% less from each. 38 territories to 47, on revenue up 3.33% from $952,957 to $984,693 *, $326,012 for each territory in 2024 against $272,362 in 2025, with the group membership unchanged.
- A single territory beats a multi-territory one on all six published measures. Ahead by 24.8% on the average, 41.1% on the median, 56.2% at the 75th percentile and 58.2% at the 25th, for each territory held *.
- The multi-territory median fell 15.72% in a year the single-territory average rose 21.04%. $1,000,558 down to $843,261 against $418,805 up to $506,934 *, and the single-territory median slipped 1.91%, so the gain there sat at the top of that group.
- Every territory has its own $15,000 minimum fees. $12,000 of royalty and $3,000 of advertising fund *, which takes a multi-territory franchisee at the 25th percentile to 14.46% of revenue against a 6% headline.
- Two territories opened in each of the last two years and 30 left. 169 down to 136, a fall of 19.5% *, with 17 of those departures recorded in 2024 alone as ceasing operations for other reasons.
How much does a The Tailored Closet franchise make?
The average The Tailored Closet unit reported $506,934 of revenue in the 2026 FDD, and the median reported $322,264. The brand’s disclosure document 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 6.6% 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. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top The Tailored Closet performers
The Tailored Closet splits its locations into groups instead of publishing one average. The best group averaged $722,836 a year. The worst averaged $184,961. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $322,264. The average was $506,934. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 3.9× 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. 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 $177,130 to $270,650, a 1.5× 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
- Service calls, the operating driver.This model bills on service calls. A technician finishes only so many calls a day, so the owner works on how many of them turn into paid work and what the average ticket is worth. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Membership and rebooking.A recurring plan turns a high-fixed-cost business from an appointment book into a subscription, which smooths the utilisation that drives the wage line. Rebooking before the customer leaves is what builds it, not marketing spend afterwards.
- Fees, and where the minimum bites.Fees run about 6.6% 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.66 of 136 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.
One territory or several
Six measures, and one territory wins all six.
| Measure | Single territory, 40 | Multiple territories, 26 | Multi, for each territory * | Single ahead by * |
|---|---|---|---|---|
| Average | $506,934 | $1,499,950 | $406,236 | +24.8% |
| 75th percentile | $722,836 | $1,709,062 | $462,871 | +56.2% |
| Median | $322,264 | $843,261 | $228,383 | +41.1% |
| Middle half, average | $389,216 | $984,693 | $272,362 | +42.9% |
| Middle half, median | $322,264 | $843,261 | $233,242 | +38.2% |
| 25th percentile | $184,961 | $431,766 | $116,937 | +58.2% |
| Range | $14,875 to $2,307,241 | $59,877 to $7,543,354 | n/a | n/a |
The first two figure columns are as the brand reported it; the two right-hand columns are marked *.
The gap is widest at the two ends of the distribution. 56.2% at the 75th percentile and 58.2% at the 25th, against 24.8% on the mean *, so a strong multi-territory franchisee and a weak one both produce less for each territory than their single-territory counterparts.
Both groups are stretched by their largest businesses. The single-territory median is 63.6% of its average and the multi-territory median 56.2% *, across ranges of 155 and 126 times, so the median is the planning number on both sides.
Single-territory franchisees are 60.6% of the group and 34.2% of its revenue. 40 of 66, holding 40 of 136 territories *, and the system as a whole produces $435,853 for each territory it holds.
The lowest-selling single-territory business billed $14,875. Against a $15,000 minimum fees before technology *. The clearest illustration here of what a fixed minimum does to a territory that failed to produce.
Comparing like with like
Same franchisees, more ground, less from each.
| Group | Franchisees | Territories 2024 | Territories 2025 | Average 2024 | Average 2025 | For each territory, 2024 * | 2025 * | Change * |
|---|---|---|---|---|---|---|---|---|
| Multi-territory, middle half | 13 both years | 38 | 47 | $952,957 | $984,693 | $326,012 | $272,362 | −16.46% |
| Single territory, middle half | 23 then 20 | 23 | 20 | $337,274 | $389,216 | $337,274 | $389,216 | +15.40% |
Franchisee counts, territory counts and averages are as the brand reported it; the three right-hand columns are marked *.
| Measure | Single 2024 | Single 2025 | Change * | Multi 2024 | Multi 2025 | Change * |
|---|---|---|---|---|---|---|
| Average | $418,805 | $506,934 | +21.04% | $1,333,769 | $1,499,950 | +12.46% |
| Median | $328,540 | $322,264 | −1.91% | $1,000,558 | $843,261 | −15.72% |
| 75th percentile | $549,219 | $722,836 | +31.61% | $1,731,804 | $1,709,062 | −1.31% |
| Middle half, average | $337,274 | $389,216 | +15.40% | $952,957 | $984,693 | +3.33% |
| Middle half, median | $328,540 | $322,264 | −1.91% | $1,000,558 | $843,261 | −15.72% |
| 25th percentile | $180,913 | $184,961 | +2.24% | $341,270 | $431,766 | +26.52% |
Both years are as the brand reported it; the change columns are marked *.
The single-territory average rose 21.04% while its median fell 1.91%. $418,805 to $506,934 against $328,540 down to $322,264 *, with the 75th percentile up 31.61%, so all of that gain sits in the top quarter of the group.
The multi-territory group went backwards through its middle. Median down 15.72% and 75th percentile down 1.31% *, while its average rose 12.46%, which means the very largest businesses carried it.
Both groups lifted their lowest-selling quarter, and the multi-territory side lifted it most. 25th percentile up 2.24% for single-territory franchisees and 26.52% for multi-territory ones *, though on a per-territory basis that is $116,937, still 58.2% behind the single-territory figure.
A minimum for each territory
Every territory pays its own minimum.
| Fee | Rate | Minimum | A year for each territory * | Sales at which the rate takes over * |
|---|---|---|---|---|
| Royalty | 5% of sales | $500 a month in year one, $1,000 thereafter | $12,000 | $240,000 |
| National advertising fund | 1% of sales | $250 a month | $3,000 | $300,000 |
| Both together | 6.0% | n/a | $15,000 | n/a |
| Technology | n/a | $250 a month for the first territory, $125 for each further one | $3,000, then $1,500 | n/a |
Rates and minimums are as the brand reported it; the two right-hand columns are marked *.
| Business | Sales | Revenue a territory * | All fees * | As a share * |
|---|---|---|---|---|
| Single territory, average | $506,934 | $506,934 | $33,416 | 6.59% |
| Single territory, median | $322,264 | $322,264 | $22,336 | 6.93% |
| Single territory, 25th percentile | $184,961 | $184,961 | $18,000 | 9.73% |
| Multi-territory, average | $1,499,950 | $406,236 | $97,035 | 6.47% |
| Multi-territory, median | $843,261 | $228,383 | $62,423 | 7.40% |
| Multi-territory, 25th percentile | $431,766 | $116,937 | $62,423 | 14.46% |
Revenue figures are as the brand reported it. Every other column is marked *, applying the greater of the rate or the mature minimum to each territory and assuming 3.6923 territories for the multi-territory rows.
A multi-territory franchisee at the 25th percentile pays 14.46% of revenue. $62,423 on $431,766 *, against 9.73% for a single-territory franchisee at its own 25th percentile, because the weaker owner is paying the minimum 3.69 times over.
the minimum applies below $240,000 in a territory. The multi-territory median produces $228,383 for each territory *, just under that line, so the median multi-territory owner in this system is paying a fixed sum.
Buying a second territory costs $45,000 at the same time and $55,000 later. Against a $55,000 initial territory fee and a $19,950 franchise fee *, and a subsequent franchise agreement has zero franchise fee.
Entry runs 18 to 28 weeks of a single-territory business’s sales. $177,130 to $270,650 against $506,934 *, carrying a tools and supplies package at $16,000 to $28,500, initial marketing at $10,000 to $15,000 and three months of additional funds at $31,000 to $46,000.
The network of locations
Two openings a year against thirty departures. (Item 20)
| Year | At start | Opened | Terminations | Non-renewals | Ceased, other | At end | Net change * |
|---|---|---|---|---|---|---|---|
| 2023 | 169 | n/a | n/a | n/a | n/a | 162 | −4.1% |
| 2024 | 162 | 2 | 3 | 0 | 17 | 144 | −11.1% |
| 2025 | 144 | 2 | 0 | 7 | 3 | 136 | −5.6% |
Counts are as the brand reported it and describe territories; the net change column is marked *.
The system is 19.5% smaller than it was two years earlier. 169 territories to 136 *, on 4 openings across the last two years against 30 departures.
2024 was the year the losses landed. 17 territories recorded as ceasing operations for other reasons in a single year, against 3 terminations *, so those departures were owners stopping.
2025 shifted from closures to non-renewals. 7 non-renewals and 3 other closures against zero terminations *, a different shape of departure, with agreements reaching their end.
The brand projects 2 openings for the year ahead. Matching the 2 it opened in each of the last two years, against 1 agreement already signed *, so the contraction is expected to slow.
Questions we get asked
Questions owners ask.
What does a Tailored Closet franchisee bill?
A single-territory franchisee averaged $506,934 in 2025 against a median of $322,264, across a range of $14,875 to $2,307,241. A multi-territory franchisee, holding 3.7 territories on average, averaged $1,499,950 against a median of $843,261, across $59,877 to $7,543,354.
Does a second territory pay?
On every published measure, one territory produces more than each of several. Dividing the multi-territory figures by the territories held gives $406,236 on the average against $506,934, $228,383 on the median against $322,264. $116,937 at the 25th percentile against $184,961.
Is that just a composition effect?
There is a cleaner test. The middle-half multi-territory group holds 13 franchisees in both published years. Those 13 went from 38 territories to 47 while their average revenue rose 3.33%. So revenue for each territory fell from $326,012 to $272,362, which is 16.46%.
Which group had the better year?
Single-territory franchisees on the average, up 21.04% against 12.46%. Through the middle, the multi-territory group went backwards: its median fell 15.72% and its 75th percentile 1.31%. The single-territory median also slipped, by 1.91%, so the single-territory gain sits in the top quarter of that group.
What does the brand take?
A royalty of the greater of 5% of sales or $500 a month for each territory in year one and $1,000 a month thereafter. An advertising fund payment of the greater of 1% or $250 a month for each territory. Technology at $250 a month for the first territory and $125 for each further one. Both minimums may rise with the consumer price index each April.
When does the minimum bite?
Below $240,000 of annual revenue in a territory for the royalty and below $300,000 for the advertising fund. The median multi-territory franchisee produces $228,383 for each territory. So it pays the minimum across most of its ground and hands over 7.40% all in. At its 25th percentile that reaches 14.46%.
What does it cost to open?
$177,130 to $270,650, of which $74,950 goes to the brand as a $19,950 franchise fee and a $55,000 initial territory fee. A second territory bought at the same time costs $45,000. Veterans and their spouses receive 15% off both fees.
- 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 The Tailored Closet
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 The Tailored Closet locations closed, were sold, or changed hands last year, and why?
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.
Launch the diagnostic →Is your newest territory earning its minimum?
A structured review of your unit economics, cash forecast. Reporting, built around revenue for each territory against the system’s $435,853, your effective fee rate against the $15,000 minimum. What the middle half of each group actually bills.
Request the reviewthe franchise library, all 243 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
The Tailored Closet reads against the rest of the remodel, garage and closets group: Archadeck Outdoor Living · Bath Tune-Up · Closets by Design · DreamMaker Bath & Kitchen · Kitchen Tune-Up · Precision Garage Door Service. 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.
- I run several locations. Which ones actually make money?Location-level contribution, and what it takes to see it.
- How much of Item 19 can I rely on?What a financial performance representation does and does not tell you.