About Closets Unlimited of New Jersey Franchise
Closets Unlimited is a home organization and custom closet design franchise that has been offering opportunities since 2000.
Each location specializes in designing and installing custom storage solutions for closets, garages, home offices, pantries, and other living spaces.
The brand combines functional design with quality craftsmanship to help homeowners maximize their storage and organization.
Closets Unlimited of New Jersey Franchise Cost & Fees
Minimum Investment
$110K
Average Investment
$368K
Maximum Investment
$625K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $44,500 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues subject to a minimum of $125 per week of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $300 per month - per store. Can be increased but will not exceed 2.5% of the previous calendar month’s Gross Revenues. | National brand fund |
| Total Investment Range | $110,300 – $624,900 | Includes build-out, inventory, working capital |
The investment range of $110K–$625K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenues subject to a minimum of $125 per week) and marketing fee ($300 per month - per store. Can be increased but will not exceed 2.5% of the previous calendar month’s Gross Revenues.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $36,000 | $44,500 |
| Travel and Living Expense While Training | $3,000 | $5,000 |
| Real Estate Improvements | $15,000 | $35,000 |
| Office Equipment and Supplies | $1,000 | $1,500 |
| Computer Hardware and Software | $2,000 | $2,400 |
| CAD Design Software Keys | $2,700 | $15,300 |
| Pallet Lifter and Fork Lift | $1,000 | $10,000 |
| Van | $1,600 | $3,700 |
| Signs and Graphics | $2,000 | $9,000 |
| Opening Showroom Displays | $5,000 | $32,000 |
| Store Displays Accessories | $1,200 | $2,500 |
| Grand Opening Advertising | $10,000 | $20,000 |
| Architect’s Fee and Engineering | $0 | $3,000 |
| Miscellaneous Opening Costs | $4,000 | $6,000 |
| Insurance | $1,800 | $5,000 |
| Shop Equipment | $1,000 | $350,000 |
| Opening Inventory | $1,000 | $25,000 |
| Legal and Accounting | $2,000 | $5,000 |
| Additional Funds (up to 3 months) | $20,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current Initial Franchise Fee, subject to a minimum of $22,250 |
| Renewal Fee | 25% of the then current Initial Franchise Fee, subject to a minimum of $11,125. |
| Technology Fee | Then-current cost (currently $1,100-1,400 annually) |
| Audit Fee | Cost of inspection or audit. |
| Supplier Testing Reimbursement | Reimbursement of our costs of inspection and evaluation and costs for testing. |
| Insurance Cost of Review | up to $500 |
| Indemnification | Will vary under circumstances |
| Bank Charges and Administrative Costs | Our then current fee (currently $50 per occurrence). |
| De-Identify | Our costs |
| Collection Costs, Attorney’s Fees and Interest | Interest on overdue amounts from the due date until paid at the lesser of 18% interest per year or the highest lawful interest rate, costs of collection, attorneys' fees and court costs. |
| Management Fee | Our then-current fee (currently $500 per day per person plus expenses if we have to temporarily manage your store.) |
| Additional Initial Training; Refresher courses; Supplemental Training; Conferences | Our then-current fee (currently $300 per person, per day) plus all reasonable travel, room, board and living expenses for you and your staff. |
| Operations Manual | $0 for 1st copy. Additional copies are at our then current cost (currently $300) |
| Cooperative Marketing | As determined by the members |
| Marketing Materials | Cost of production plus a 20% markup |
| Email Address/Mailbox | Our then-current fee (currently $7-$10 per month) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 160 hours |
| Classroom Training | 92 hours |
| On-the-Job Training | 68 hours |
| Training Location | Corporate Office (New Jersey) or Corporate Retail Store (Marlton, NJ) / At Franchise Location / Remote calls or webinars |
| Additional Training | We reserve the right to offer refresher courses and supplemental training programs, which may be optional or mandatory, from time to time. You shall be responsible for the personal expenses, including transportation to and from the training site and lodging, meals, and salaries during training, for individuals attending any refresher or supplemental training. You shall pay our then-current tuition for any individual attending refresher courses or supplemental training (currently $300 per person, per day). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | 1 million people or more |
| Description | The designation of a protected territory will vary from location to location and will depend upon population density, demographics, area, geographic size of counties or other governmental subdivisions in a particular trading area and proximity of competition. You are permitted to operate only one location in the Territory. We will not operate a Closet & Storage Concepts business, solicit customers, grant franchises to operate a business similar to yours using the Proprietary Marks or trade names or permit other Closet & Storage Concepts franchisees to solicit customers within your protected territory, except where we make a determination that your Territory will support additional locations (for which you will have the right of first refusal). Your Territory and the territory of a More Space Place franchisee may overlap. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 25% of the then current Initial Franchise Fee, subject to a minimum of $11,125. |
| Renewal Conditions | Have satisfied all monetary obligations, sign a new franchise agreement which may contain materially different terms and conditions than your original agreement; pay fee, remodel; obtain necessary licenses; execute a release and renew lease or sign a new lease. |
| Transfer Fee | 50% of the then current Initial Franchise Fee, subject to a minimum of $22,250 |
| Transfer Conditions | Satisfaction of all monetary obligations to us, our affiliates, or suppliers; timely cure of all existing defaults; execution of a general release; execute Consent to Transfer; provide copy of executed purchase agreement; proposed transferee meets our standards, possesses good moral character, business reputation and credit rating, has aptitude and adequate financial resources; transferee executes our then-current Franchise Agreement; transferee and its designated manager complete initial training program; adherence to all post termination covenants. |
| Termination for Cause | We have the right to terminate the Franchise Agreement with cause. Depending upon the reason, we do not have to provide you an opportunity to cure. Cure periods are 7 days for Proprietary Marks issues, 15 days for failure to pay sums owed to us/affiliates, and 30 days for other breaches. No opportunity to cure for criminal acts, bankruptcy, fraud, misrepresentation, intentional underreporting, failure to maintain insurance, unauthorized use of confidential information, invalid transfers, failure to open, loss of right to occupy premises, abandonment, unauthorized opening, public health/safety threats, or violation of non-compete covenants. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, neither you nor your equity owners may have any interest in any Competing Business (offers products/services competitive with Closet & Storage Concepts or More Space Place) or any company granting franchises/licenses for a competing business. After termination/expiration/transfer, for 2 years, neither you nor your equity owners may own, engage in, be employed by, or have any interest in any Competing Business inside the Territory, within 20 miles of the Territory, or within 20 miles of other Closet & Storage Concepts and More Space Place Territories. Also prohibited from soliciting former customers for competitive purposes or soliciting employees of Franchisor/affiliates/other franchisees. This also applies to any company granting franchises/licenses for a competing business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchised Business must be operated by either yourself (if an individual), one of your principal owners (if you are an entity) or a designated manager. Both the franchisee and the designated manager must satisfactorily attend and complete our training program. Personal attention by you and/or the designated manager is critical to the success of your Franchised Business. Your designated manager need not have any equity interest in the franchise. Either you or your designated manager must furnish full-time attention and best efforts to the management of the Franchised Business and personally supervise the Franchised Business. You may not change or otherwise replace the designated manager without our prior written approval. |
| Required Suppliers | You are obligated to purchase all wood, brass, plastic, multiple and special hangers, shoe racks, tie & belt racks, garment racks, storage closets and other storage systems, specialty items and closet rods, lumber and particle board (melamine laminated), rod covers, rod cups, pole covers, CAD Design Software Keys and hardware and any other closet or storage system related accessories, hardware and fixtures from us, our affiliate or from a supplier or manufacturer approved by us. We are currently the only supplier of CAD Design Software Keys. Our affiliate, MSP Manufacturing, is an approved supplier for Cabinet Components, Murphy Bed Frames, Hardware & Accessories, Mattresses, Closet Systems Components, and Decorative Doors and Drawer Fronts. |
| Supply Restrictions | You must purchase all other products, goods, services, supplies, fixtures, equipment, inventory, computer hardware and software or real estate relating to the establishment or operation of your Franchised Business from a supplier we designate. We may also designate preferred suppliers for products and services. You may not purchase any item from any supplier for which approval is required until you have first received written notification of our approval. You must reimburse us for our reasonable costs of evaluating, inspecting and testing the proposed supplier or item. |
| Franchisor Revenue from Suppliers | 0 |
Closets Unlimited of New Jersey Franchise Earnings — Item 19
Average Revenue
$2.9M
Median Revenue
$2.9M
Revenue Range
$2.4M – $3.5M
Sample Size
5 units
Past financial performance does not guarantee future results. Individual results will vary.
Closets Unlimited of New Jersey Litigation & Risk Flags
Clean Litigation RecordClosets Unlimited of New Jersey has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Closets Unlimited of New Jersey System Growth
Total Units
12
Franchised
8
Company-Owned
4
Closets Unlimited of New Jersey currently operates 8 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 1 | 13 |
| 2021 | 0 | 1 | 12 |
| 2022 | 0 | 0 | 12 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 15 states: CA, ND, HI, OR, IL, RI, IN, SD, MD, VA, MI, WA, MN, WI, NY
Franchisor Financials (Item 21)
Revenue
$5.0M
Net Income
$1.5M
Total Assets
$2.0M
Audited by CANTOR NBP & PIKE, PC for year ending December 31st.
Closets Unlimited of New Jersey Franchise — FAQ
The total investment to open a Closets Unlimited of New Jersey franchise ranges from $110,300 to $624,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $44,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Closets Unlimited of New Jersey charges a royalty fee of 5% of Gross Revenues subject to a minimum of $125 per week of gross sales, plus a $300 per month - per store. Can be increased but will not exceed 2.5% of the previous calendar month’s Gross Revenues. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Closets Unlimited of New Jersey Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Closets Unlimited of New Jersey to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Closets Unlimited of New Jersey franchise owners report average revenue of $2.9M and median revenue of $2.9M. This is based on a sample of 5 units. Past performance does not guarantee future results.
Closets Unlimited of New Jersey has been franchising since 2000. The FDD shows an investment range of $110,300-$624,900, a 5% of Gross Revenues subject to a minimum of $125 per week royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $44,500 and the total investment ranges from $110,300 to $624,900 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Closets Unlimited of New Jersey and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Closets Unlimited of New Jersey or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com