CLOSETS BY DESIGN Franchise
Cost, fees, owner earnings, closure rate and litigation for a CLOSETS BY DESIGN franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
CLOSETS BY DESIGN discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
60 mature franchised businesses: avg $10.2M sales, median $7.7M. Only 36.7% met average. Quartile breakdown shows wide variance; lowest 25% averaged $3.6M sales.
What a CLOSETS BY DESIGN franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $20,000 | Item 5 — paid up front, before you open |
| Royalty | 7.25% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2.25% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 9.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $154,000 – $511,000 | Item 7 — franchisor's own low/high estimate |
7% royalty renewal year one; 7.25% thereafter. 2.25% national fund; variable advertising 12-23% revenue. Multiple compliance fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
CLOSETS BY DESIGN system size and owner turnover
| Total outlets | 84 |
| Ceased operations | 2 |
| Terminated by franchisor | 9 |
| Transferred to new owners | 0 |
| Closure rate | 2.4% of outlets |
9 terminations in 2025; 2 ceased operations. Low closure rate; stable system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is CLOSETS BY DESIGN worth it? — how it compares to 436 similar franchises
| Ongoing fees | 9.5% of sales | steeper than 72% of other franchises franchises |
| Startup cost | from $154,000 | about average (median $138,750) |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 2.4% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a CLOSETS BY DESIGN
The franchisor's framing: 60 mature franchised businesses: avg $10.2M sales, median $7.7M. Only 36.7% met average. Q… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
CLOSETS BY DESIGN franchise — frequently asked
- How much does a CLOSETS BY DESIGN franchise cost?
- The FDD lists a total initial investment of about $154,000–$511,000, including a $20,000 initial franchise fee.
- How much do CLOSETS BY DESIGN franchise owners make?
- 60 mature franchised businesses: avg $10.2M sales, median $7.7M. Only 36.7% met average. Quartile breakdown shows wide variance; lowest 25% averaged $3.6M sales. We grade this disclosure B for honesty.
- What are the CLOSETS BY DESIGN franchise fees?
- CLOSETS BY DESIGN's FDD discloses a $20,000 initial franchise fee, a 7.25% royalty on gross sales, a 2.25% advertising-fund contribution, for roughly 9.5% of gross sales in recurring fees before rent, labor, or debt service. 7% royalty renewal year one; 7.25% thereafter. 2.25% national fund; variable advertising 12-23% revenue. Multiple compliance fees.
- What is the CLOSETS BY DESIGN franchise profit margin?
- CLOSETS BY DESIGN does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 60 mature franchised businesses: avg $10.2M sales, median $7.7M. Only 36.7% met average. Quartile breakdown shows wide variance; lowest 25% averaged $3.6M sales. Recurring fees alone take about 9.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the CLOSETS BY DESIGN franchise failure rate?
- 9 terminations in 2025; 2 ceased operations. Low closure rate; stable system.
- How many CLOSETS BY DESIGN locations are there?
- CLOSETS BY DESIGN's FDD reports 84 total outlets, with 2 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does CLOSETS BY DESIGN have complaints or lawsuits?
- CLOSETS BY DESIGN discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a CLOSETS BY DESIGN franchise worth it?
- It depends on the numbers, not the pitch. CLOSETS BY DESIGN scores B on disclosure honesty, carries about 9.5% of sales in ongoing fees. Get the real owner take-home before you sign.
Own a CLOSETS BY DESIGN? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare CLOSETS BY DESIGN to similar franchises
See all franchises ranked by disclosure honesty →
Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with CLOSETS BY DESIGN or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.