Up Closets franchise unit economics
Up Closets franchisees design, sell and install custom closet systems and storage for homes, garages and commercial spaces, and may run the business from an office in the owner's home.
Up Closets franchise at a glance
Item 19 of Up Closets' 2026 FDD reports annual sales by quartile for 20 franchised locations, with average ticket, close rate, consultations and closets sold for each quartile, and system averages for cost per consultation, marketing spend and cost of goods.
Item 19 of Up Closets’ 2026 FDD, issued 18 March 2026, reports a median of $668,778 in annual sales for 20 Up Closets franchised locations over the 12 months to October 31, 2025, and Up Closets does not print an overall average. The 20 in that group are 26%* of Up Closets’ 76 franchised locations.
- A single-territory Up Closets franchise costs $95,350 to $150,550 to open, including a $49,000 initial franchise fee.
- Up Closets charges a royalty of 6% of gross sales up to $1,000,000, 5% between $1,000,000 and $2,000,000 and 4% above, with a minimum of $1,000 a month for a single territory.
- Up Closets does not print an overall average in Item 19; it reports that 8 of the 20 locations, 40%, reached or passed the average.
- Up Closets reports cost of goods averaging 42% of gross revenue across the system, with a high of 48% and a low of 38%.
- A single-territory Up Closets franchise must spend at least $4,000 a month on local advertising in its first year, and Item 6 gives a typical range of 18% to 25% of target revenue.
- Up Closets had 76 franchised and 3 affiliate-owned outlets at October 31, 2025, against none franchised at the start of fiscal 2023.
- The franchisor, Up Closets Franchising LLC of Franklin, Tennessee, began offering franchises on December 12, 2022.
These figures come from Up Closets's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan Up Closets Conversion Package →- Item 19 prints a median of $668,778 but no overall average. It states that 8 of the 20 locations, 40%, attained or surpassed the average revenue result. Annual sales ran from $359,450 at the lowest location to $2,305,000 at the highest.
- Close rates run from 44% in the first quartile to 24% in the fourth. Consultations run from 372 a year to 240, and average tickets from $8,648.00 to $4,968.40. Item 19 does not say whether each table’s quartiles hold the same five locations.
- A consultation costs $210 on the system average. Average monthly marketing spend is $6,400 with one salesperson, $11,600 with two and $16,200 with three, or $76,800*, $139,200* and $194,400* a year.
- Cost of goods averages 42% of gross revenue, between 38% and 48%. At the $668,778 median, 42% is $280,887* a year.
- Up Closets charges a 6% royalty on gross sales up to $1,000,000 and a $650 monthly technology fee. The technology fee is $7,800* a year. The required local advertising of at least $48,000* a year in the first year is spent by the franchisee.
Annual sales
How much does an Up Closets franchise make?
| Measure | Annual sales |
|---|---|
| Top performer | $2,305,000 |
| 1st quartile | $1,226,911 |
| 2nd quartile | $759,168 |
| Median | $668,778 |
| 3rd quartile | $492,091 |
| 4th quartile | $450,664 |
| Lowest performer | $359,450 |
As printed in Item 19. Each quartile contains five franchisees. Gross Revenue is all revenue from products, services and merchandise, less discounts, returns, taxes and shipping charges. Figures were reported by franchisees and are unaudited.
The 20 reporting locations had median annual sales of $668,778. The 1st quartile figure is $1,226,911 and the 4th quartile figure is $450,664. The highest location reported $2,305,000 and the lowest $359,450.
Item 19 does not print the overall average. It says it presents the average Gross Revenue of the 20 locations and that 8 of them, 40%, attained or surpassed the average revenue result, but no average figure appears in the tables.
The 20 locations are those with at least 12 months of operation, full advertising programs and staffing at minimum levels. Item 19 says locations not included were in business less than 12 months or were not in compliance. Item 20 counts 76 franchised outlets at October 31, 2025, so 56* are outside the group.
The three affiliate-owned outlets are not part of the group. Item 19 covers franchised locations. Item 1 says the affiliate Pelican Franchising LLC runs its Up Closets outlets as franchise locations and pays the same royalties and technology fees.
Marketing and cost of goods
Marketing spend and cost of goods
| Measure | As printed | A year |
|---|---|---|
| Average cost per consult | $210 | |
| Monthly marketing spend, 1 salesperson | $6,400 | $76,800* |
| Monthly marketing spend, 2 salespeople | $11,600 | $139,200* |
| Monthly marketing spend, 3 salespeople | $16,200 | $194,400* |
| Cost of goods, system average | 42% of gross revenue | |
| Cost of goods, high | 48% | |
| Cost of goods, low | 38% |
Figures as printed in Item 19. The yearly column multiplies each monthly figure by 12. Item 19 does not state the period or number of locations behind the marketing and cost of goods figures beyond the label “System Average”.
Item 19 reports a system average cost of $210 for each consultation. At that cost, the 372 consultations of the 1st quartile are $78,120* a year and the 240 of the 4th quartile are $50,400*.
Average monthly marketing spend rises with the number of salespeople. It is $6,400 with one, $11,600 with two and $16,200 with three, or $76,800* to $194,400* a year.
Item 6 sets local advertising at a minimum of $4,000 a month for each 500,000 of territory. That is $48,000* a year for a single territory. Item 6 says spending is typically 18% to 25% of target revenue, and Note 4 applies the minimum to the first year of operation; after the first year the franchisor may reduce it.
Cost of goods averages 42% of gross revenue, with a high of 48% and a low of 38%. At the $668,778 median, 42% is $280,887*.
Results by quartile
Consultations, close rates and tickets by quartile
| Quartile | Annual sales | Consultations | Close rate | Closets sold | Average ticket |
|---|---|---|---|---|---|
| 1st | $1,226,911 | 372 | 44% | 124 | $8,648.00 |
| 2nd | $759,168 | 319 | 39% | 107 | $6,174.80 |
| 3rd | $492,091 | 311 | 34% | 103 | $5,397.00 |
| 4th | $450,664 | 240 | 24% | 89 | $4,968.40 |
As printed in Item 19, where each measure is a separate table. Item 19 also reports a highest ticket of $92,000. Item 19 does not say whether the quartiles in each table hold the same five locations.
The 1st quartile closed 44% of consultations and the 4th quartile 24%. The 2nd and 3rd quartiles closed 39% and 34%.
Consultations run from 372 a year in the 1st quartile to 240 in the 4th. The 2nd and 3rd quartiles reported 319 and 311.
Average tickets run from $8,648.00 in the 1st quartile to $4,968.40 in the 4th. The highest single ticket was $92,000. Closets sold run from 124 to 89.
The quartile tables do not multiply out to the annual sales figures. In the 1st quartile, 124 closets at $8,648.00 is $1,072,352*, against $1,226,911 of annual sales; in the 4th quartile it is $442,188* against $450,664. Item 19 does not explain how the tables relate.
Brand charges
Brand charges
| Fee | Amount | When |
|---|---|---|
| Initial franchise fee | $49,000 for up to 500,000 people, plus $49,000 for each further 500,000; $5,000 off the first unit for veterans and first responders | At signing |
| Initial marketing fee (Item 5) | $1,000 a unit | At signing |
| Royalty | The greater of $1,000 a month (single territory; $1,500 double, $2,000 triple) or 6% of gross sales up to $1,000,000, 5% between $1,000,000 and $2,000,000 and 4% above $2,000,000 | Monthly |
| Technology fee | $650 a month per territory | Monthly |
| Brand fund | None now and not planned for 2026; up to 2% of gross revenue if activated | Monthly |
| Local advertising (spent by the franchisee) | Typically 18% to 25% of target revenue, minimum $4,000 a month per 500,000 of territory | As incurred |
| Advertising cooperative | None now; up to 2% of gross revenue, credited toward the local advertising minimum | As set |
| National accounts fee | 10% of gross revenue on jobs the franchisor or its affiliate refers, in addition to the royalty | On payment |
| Bookkeeping fee (third-party vendor) | $349 a month | Monthly |
Amounts as printed in Items 5 and 6.
The royalty is 6% of gross sales up to $1,000,000, 5% between $1,000,000 and $2,000,000 and 4% above $2,000,000. The minimum is $1,000 a month for a single territory, $12,000* a year, which equals 6% of $200,000* in sales. All 20 reporting locations had sales above that level.
Up Closets charges a royalty of 6% of gross sales up to $1,000,000 and a technology fee of $650 a month, $7,800* a year. Item 19 prints a median but no average, so no fee share of average sales is stated here.
There is no brand fund contribution today. Item 6 says a brand fund of up to 2% of gross revenue may be activated on notice, and an advertising cooperative of up to 2% may be formed.
Item 6 lists a bookkeeping fee of $349 a month, paid to KTA Financial Advisors. Item 6 says the vendor keeps the books daily and provides monthly profit and loss and balance sheet reports.
Royalty and technology fees start 60 days after signing whether the business has opened or not. Item 11 gives 60 days as the typical time from signing to opening.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $49,000 | $49,000 |
| Training travel and lodging | $1,500 | $4,000 |
| Equipment and tools | $4,000 | $4,000 |
| Vehicle and customization (wrap) | $2,500 | $8,000 |
| Initial inventory and spare parts | $5,000 | $7,500 |
| Business licenses and permits | $150 | $1,500 |
| Computer systems and software set-up | $100 | $1,300 |
| Apparel and printed materials | $1,500 | $5,000 |
| Professional fees | $500 | $1,500 |
| Start-up marketing fee | $10,000 | $15,000 |
| Insurance | $500 | $2,500 |
| Software and recruitment ads | $600 | $1,250 |
| Additional funds, 3 months | $20,000 | $50,000 |
| Total | $95,350 | $150,550 |
As printed in Item 7. The additional funds cover initial payroll, taxes, supplies, recruiting and marketing for the first three months and do not include pay for the owner or loan payments.
Item 7 puts the cost to open a single territory at $95,350 to $150,550. A double territory is $156,700 to $233,000 and a triple territory $210,200 to $300,500.
Item 12 says the Double Territory is the standard offer. A Single Territory of about 500,000 people or a Triple Territory of about 1,500,000 may be offered in certain markets.
Item 7 lists a start-up marketing fee of $10,000 to $15,000 paid to the franchisor at signing. Item 5 describes a $1,000 Initial Marketing Fee; the FDD does not reconcile the two amounts.
Item 12 permits the business to run from an office in the owner’s home. Item 7 has no line for leased premises; the largest lines after the franchise fee are additional funds and start-up marketing.
Locations
Locations, 2023 to 2025
| Year | Start | Opened | Terminated | Ceased, other | End | Affiliate-owned at end |
|---|---|---|---|---|---|---|
| 2023 | 0 | 13 | 0 | 0 | 13 | 3 |
| 2024 | 13 | 36 | 3 | 5 | 41 | 3 |
| 2025 | 41 | 41 | 6* | 0 | 76 | 3 |
| 2023–2025* | 0 | 90* | 9* | 5 | 76 | 3 |
As printed in Item 20, fiscal years running November 1 to October 31. For 2025 the total row prints 4 terminations; the state rows add to 6 (2 each in Colorado, Florida and Texas), and 6 reconciles the start and end counts. No non-renewals or reacquisitions were reported.
Up Closets had 76 franchised outlets and 3 affiliate-owned outlets at October 31, 2025. The franchised count was 13 at the end of fiscal 2023 and 41 at the end of fiscal 2024.
41 franchised outlets opened in fiscal 2025 and 36 in fiscal 2024. 90* opened over the three years.
14* franchised outlets left over the three years. In 2024, 3 were terminated and 5 in Texas ceased operations for other reasons; in 2025, 6* were terminated.
12 franchise agreements were signed but not open at October 31, 2025. Item 20 projects 30 new franchised and 3 new affiliate-owned outlets in the next fiscal year. Franchises changed hands 4 times in 2024 and 3 times in 2025.
Questions we get asked
Questions owners ask
How much does an Up Closets franchise cost to open?
Item 7 puts a single territory at $95,350 to $150,550, including the $49,000 initial franchise fee, $10,000 to $15,000 of start-up marketing and $20,000 to $50,000 of additional funds for the first three months. A double territory is $156,700 to $233,000.
What fees does an Up Closets franchisee pay?
A royalty of 6% of gross sales up to $1,000,000, 5% to $2,000,000 and 4% above, with a minimum of $1,000 a month for a single territory, and a technology fee of $650 a month. Local advertising must be at least $4,000 a month per 500,000 of territory in the first year.
How much revenue does an Up Closets franchise make?
Item 19 reports median annual sales of $668,778 for 20 franchised locations with at least 12 months of operation to October 31, 2025. Quartile figures run from $1,226,911 to $450,664. Item 19 does not print an overall average; it says 8 of the 20 reached it.
Does the Up Closets FDD show profit?
No. Item 19 reports sales, consultations, close rates, tickets, marketing spend and cost of goods, but no profit figure. Cost of goods averages 42% of gross revenue, from 38% to 48%.
What does a consultation cost an Up Closets franchise?
Item 19 gives a system average of $210 a consultation. The 1st quartile reported 372 consultations and a 44% close rate, and the 4th quartile 240 consultations and a 24% close rate.
How many Up Closets locations are there?
Item 20 shows 76 franchised and 3 affiliate-owned outlets at October 31, 2025, up from 41 franchised a year earlier. 12 more franchise agreements were signed but not yet open.
Questions worth putting to Up Closets
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Up Closets see in its highest-selling locations, such as territory, years open and staffing?
- 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 Up Closets 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. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for an Up Closets owner
We review your unit economics and cash forecast and build your monthly reporting around the figures on this page.
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- Precision Garage Door Service
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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.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- 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 Up Closets Franchising 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. Up Closets is a 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: Up Closets Franchising LLC, 2026 Franchise Disclosure Document, issued 18 March 2026.