The Tailored Closet franchise unit economics
The Tailored Closet franchisees design, sell and install closet, pantry, home office and other storage systems in customers' homes, working from a van.
The Tailored Closet franchise at a glance
Item 19 of The Tailored Closet's 2026 FDD reports the average, median, 75th and 25th percentile revenue, plus the middle-half average and median, for 40 single-territory and 26 multi-territory franchisees across 2024 and 2025.
The Tailored Closet’s 40 single-territory franchisees open all of 2025 averaged $506,934 of sales, with a median of $322,264, according to Item 19 of The Tailored Closet’s 2026 FDD, issued 20 March 2026. The Tailored Closet’s Item 19 covers 66 franchisees holding 136 territories, all but one of The Tailored Closet’s territories open for all of 2025. Fees paid to The Tailored Closet come to about 6.59%* of sales.
- A Tailored Closet franchise costs $177,130 to $270,650 to open, including a $19,950 initial franchise fee, according to the brand's 2026 FDD.
- The Tailored Closet charges a royalty of 5% of sales, a 1% brand fund contribution and a $250 monthly technology fee.
- 40% of The Tailored Closet’s 40 single-territory franchisees reached the single-territory average.
- Work out The Tailored Closet's fees at your own sales with the minimum fee calculator.
These figures come from The Tailored Closet's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- The same 13 franchisees added 9 territories and earned 16.46% less from each. That is 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. For each territory held, a single-territory Tailored Closet franchisee is ahead by 24.8% on the average, 41.1% on the median, 56.2% at the 75th percentile and 58.2% at the 25th *.
- The Tailored Closet’s single-territory average rose 21.04% in 2025 and its multi-territory average rose 12.46%. That is $418,805 up to $506,934 against $1,333,769 up to $1,499,950*. The single-territory median fell 1.91% and the multi-territory median fell 15.72%, so the gains in both groups sat in their upper halves.
- Every Tailored Closet territory carries its own $15,000 of minimum fees. The minimums are $12,000 of royalty and $3,000 of advertising fund a year *, which takes a multi-territory franchisee at the 25th percentile to 14.46% of revenue against a 6% headline.
- The Tailored Closet opened 2 territories in each of 2024 and 2025 and lost 30. That took The Tailored Closet from 162 territories to 136, a fall of 16.0%*, and 17 of the 30 departures were recorded in 2024 as ceasing operations for other reasons.
How much does a Tailored Closet franchise make?
The Tailored Closet’s 40 single-territory franchisees open all of 2025 averaged $506,934 of sales and their median was $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 Tailored Closet performers
The Tailored Closet publishes percentiles for its owners instead of grouped averages. The Tailored Closet 75th percentile single-territory owner reported $722,836 of sales in 2025. The Tailored Closet 25th percentile single-territory owner reported $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
- Site and trade area.The Tailored Closet 75th percentile single-territory owner sells 3.9× the 25th percentile owner. Catchment, daytime population and neighboring businesses affect where a location falls.
- Territory.This model sells from a territory, with no storefront. Population density sets how much driving sits between jobs.
- Opening cost range.Opening costs $177,130 to $270,650, a 1.5× range inside one brand.
- Fees and the minimum.Fees run about 6.6% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Live operating levers
- Sales depend 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.
Context you underwrite around
- Locations included.These figures cover 66 Tailored Closet franchisees holding 136 territories, all but one of The Tailored Closet’s territories open for all of 2025. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.Item 19 publishes no profit or cost data for franchised locations. Ask the franchisor or current owners for cost and profit figures.
Discounts available
- The Tailored Closet takes 15% off both the initial franchise fee (to $16,958) and the initial territory fee (to $46,750) for active-duty or honorably discharged U.S. military veterans and their spouses.
- The Tailored Closet charges a $45,000 territory fee instead of $55,000 for a second territory signed at the same time, and no initial franchise fee on subsequent franchise agreements.
From Item 5 of the The Tailored Closet 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
One territory or several
Single and multiple territory sales, 2025
| 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. It is 56.2% at the 75th percentile and 58.2% at the 25th, against 24.8% on the mean *, so a high-selling multi-territory franchisee and a low-selling one both produce less for each territory than their single-territory counterparts.
Both groups have medians below their averages. 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. They are 40 of 66 Tailored Closet franchisees, 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. That compares with a $15,000 minimum in fees before technology *.
Comparing like with like
Middle half of each group, 2024 and 2025
| 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%. The Tailored Closet single-territory average went from $418,805 to $506,934 and the median from $328,540 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 median fell 15.72%. The Tailored Closet multi-territory median fell 15.72% and its 75th percentile fell 1.31% *, while its average rose 12.46%, so the largest businesses carried the gain.
Both groups lifted their lowest-selling quarter, and the multi-territory side lifted it most. The Tailored Closet 25th percentile rose 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
Continuing fees and 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. That is $62,423 of Tailored Closet fees on $431,766 of revenue *, against 9.73% for a single-territory franchisee at its own 25th percentile, because the lower-selling owner is paying the minimum 3.69 times over.
The Tailored Closet royalty 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. That compares with a $55,000 initial territory fee and a $19,950 franchise fee *, and a subsequent franchise agreement has no franchise fee.
Entry runs 18 to 28 weeks of a single-territory business’s sales. That is $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
Outlet movement, 2023 to 2025
| 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 Tailored Closet is 16.0% smaller than it was two years earlier. It went from 162 territories at the end of 2023 to 136 at the end of 2025*, with 4 openings against 30 departures.
17 territories ceased operations in 2024. The Tailored Closet recorded 17 territories as ceasing operations for other reasons that year, against 3 terminations *, so those departures were owners stopping.
2025 shifted from closures to non-renewals. That is 7 non-renewals and 3 other closures against no terminations *, as agreements reached their end.
The brand projects 2 openings for the year ahead. That matches the 2 The Tailored Closet 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.
How much does The Tailored Closet franchise make?
The Tailored Closet’s 40 single-territory franchisees open all of 2025 averaged $506,934 of sales, with a median of $322,264, according to Item 19 of The Tailored Closet’s 2026 FDD, issued 20 March 2026. The Tailored Closet’s Item 19 covers 66 franchisees holding 136 territories, all but one of The Tailored Closet’s territories open for all of 2025. Fees paid to The Tailored Closet come to about 6.59%* of sales.
What does a Tailored Closet franchisee bill at The Tailored Closet?
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 at The Tailored Closet?
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. At the 25th percentile, it is $116,937 against $184,961.
Is that just a composition effect at The Tailored Closet?
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 at The Tailored Closet?
Single-territory franchisees led 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 fees does The Tailored Closet charge?
The royalty is the greater of 5% of sales or $500 a month for each territory in year one and $1,000 a month thereafter. The Tailored Closet charges an advertising fund payment of the greater of 1% or $250 a month for each territory. Technology costs $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 at The Tailored Closet?
The minimums apply 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%.
How much does a Tailored Closet franchise cost to open?
A Tailored Closet franchise costs $177,130 to $270,650 to open, 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.
- The filing gives no profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- The filing breaks out 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
These are questions the The Tailored Closet filing leaves open. An owner or a buyer can put them to The Tailored Closet directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- Which factors does The Tailored Closet see in its highest-selling locations, such as trade area, years open and size?
- 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 Tailored Closet locations closed, were sold, or changed hands last year, and why?
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. 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?
We review your unit economics and cash forecast and build your reporting 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.
Talk to Averanthe franchise library, all 447 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?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- I run several locations. Which ones actually make money?It shows each location's contribution to profit and the reporting it takes to see it.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from.
Every figure here comes from Organized Spaces, LLC’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. The Tailored Closet® 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: Organized Spaces, LLC, 2026 Franchise Disclosure Document, issued 20 March 2026.