The Tailored Closet Franchise
Cost, fees, owner earnings, closure rate and litigation for a The Tailored Closet franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
The Tailored Closet discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 sales data for 40 single-territory and 26 multi-territory franchisees. Average single-territory sales $506,934; median $322,264. Only 40-50% achieved average/median. Wide range: $14,875-$2.3M single, $59,877-$7.5M multi.
What a The Tailored Closet franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $19,950 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $177,130 – $270,650 | Item 7 — franchisor's own low/high estimate |
Royalty 5% or $500-$1,000/month/territory. Ad fund 1% or $250/month min. Technology $250/month. Transfer fee $5,000-$50,000.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
The Tailored Closet system size and owner turnover
| Total outlets | 136 |
| Ceased operations | 3 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 2 |
| Closure rate | 2.2% of outlets |
136 outlets 2025; 8 net decline. 3 ceased operations, 7 non-renewals 2025. System declining.
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 The Tailored Closet worth it? — how it compares to 436 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 8%) |
| Startup cost | from $177,130 | about average (median $138,750) |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 2.2% of outlets | about average |
| Disclosed lawsuits | 1 | about average |
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 The Tailored Closet
The franchisor's framing: 2025 sales data for 40 single-territory and 26 multi-territory franchisees. Average single… 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
The Tailored Closet franchise — frequently asked
- How much does a The Tailored Closet franchise cost?
- The FDD lists a total initial investment of about $177,130–$270,650, including a $19,950 initial franchise fee.
- How much do The Tailored Closet franchise owners make?
- 2025 sales data for 40 single-territory and 26 multi-territory franchisees. Average single-territory sales $506,934; median $322,264. Only 40-50% achieved average/median. Wide range: $14,875-$2.3M single, $59,877-$7.5M multi. We grade this disclosure B for honesty.
- What are the The Tailored Closet franchise fees?
- The Tailored Closet's FDD discloses a $19,950 initial franchise fee, a 5% royalty on gross sales, a 1% advertising-fund contribution, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% or $500-$1,000/month/territory. Ad fund 1% or $250/month min. Technology $250/month. Transfer fee $5,000-$50,000.
- What is the The Tailored Closet franchise profit margin?
- The Tailored Closet does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 sales data for 40 single-territory and 26 multi-territory franchisees. Average single-territory sales $506,934; median $322,264. Only 40-50% achieved average/median. Wide range: $14,875-$2.3M single, $59,877-$7.5M multi. Recurring fees alone take about 6% 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 The Tailored Closet franchise failure rate?
- 136 outlets 2025; 8 net decline. 3 ceased operations, 7 non-renewals 2025. System declining.
- How many The Tailored Closet locations are there?
- The Tailored Closet's FDD reports 136 total outlets, with 3 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does The Tailored Closet have complaints or lawsuits?
- The Tailored Closet discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a The Tailored Closet franchise worth it?
- It depends on the numbers, not the pitch. The Tailored Closet scores B on disclosure honesty, carries about 6% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with The Tailored Closet or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.