About Clozetivity Franchise
Clozetivity is a home organization franchise specializing in the design, sale, and installation of custom closet systems and organizational units for homes, home offices, garages, and commercial spaces.
Services are delivered directly on site at customer locations within a designated operating area.
The franchise fee is $39,000 for a single territory or $78,000 for a double territory.
Clozetivity Franchise Cost & Fees
Minimum Investment
$82K
Average Investment
$120K
Maximum Investment
$158K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,000 | One-time payment upon signing |
| Royalty Fee | Monthly Royalty Fee Requirement: $400-$2,000 for Single Territory, $400-$4,000 for Double Territory of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales, currently not assessed | National brand fund |
| Total Investment Range | $81,500 – $157,500 | Includes build-out, inventory, working capital |
The investment range of $82K–$158K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Monthly Royalty Fee Requirement: $400-$2,000 for Single Territory, $400-$4,000 for Double Territory) and marketing fee (Up to 2% of Gross Sales, currently not assessed) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 |
| Construction and Leasehold Improvements | $2,500 | $5,500 |
| Equipment | $8,000 | $17,500 |
| Initial Inventory | $3,000 | $3,000 |
| Computer, Software and Point of Sales System | $1,500 | $2,500 |
| Service Vehicle | $4,500 | $45,000 |
| Start-Up Marketing – 3 Months | $5,500 | $5,500 |
| Insurance Deposits – 3 Months | $1,000 | $4,500 |
| Travel for Initial Training | $500 | $2,000 |
| Professional Fees | $500 | $1,500 |
| Licenses and Permits | $500 | $1,500 |
| Additional Funds – 3 months | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers |
| Renewal Fee | 5% of our then current initial franchise fee |
| Technology Fee | Currently $120 per month |
| Audit Fee | Cost of audit plus expensed incurred |
| Franchisee Directed Local Marketing | Greater of 2% of Gross Sales or Minimum Monthly Local Marketing Requirement ($1,500 for Single Territory, $3,000 for Double Territory) |
| Local and Regional Advertising Cooperatives | Up to 2% of monthly Gross Sales, currently not assessed |
| Contact Center | Up to 3% of monthly Gross Sales, currently not assessed |
| Customer Service and Refunds | Varies under the circumstances |
| Annual Conference Attendance | Our then current conference fee, but not greater than $1,500. Currently not assessed. |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day |
| Supplemental Training | Our then current daily fee per trainer, plus our expenses. Current rate is $250 per day |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence plus costs |
| Payment Non-Compliance | $150 per occurrence |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Interest | 18% per annum from due date |
| Quality Assurance Audit | Actual costs incurred by us |
| Collections | Actual fees, costs, and expenses |
| Reimbursement | Costs and expenses incurred by us, plus 10% of the costs and expenses incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 day period |
| Classroom Training | 15 |
| On-the-Job Training | 10 |
| Training Location | Nashville, Tennessee |
| Additional Training | Franchisees or their Managing Owner and Operating Manager may be required to participate in supplemental on-site training if System performance standards are not met, at a cost of $250 per trainer per day plus expenses. Initial training for replacement Operating Managers costs $500 per person per day. Franchisees may also be required to attend a System-Wide Training Program for up to 5 days annually in Nashville, Tennessee, covering their own travel, lodging, food, and wages. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Single Territory: approximately 250,000 to 350,000 people. Double Territory: approximately 750,000 to 1,000,000 people. |
| Description | You will not receive an exclusive territory. However, during the term of the Franchise Agreement, provided you are not in default, the franchisor will not open and operate, nor grant another franchisee the right to open and operate a Clozetivity Business within your Operating Territory. The franchisor and its affiliates reserve the right to operate and grant others the right to operate Clozetivity Businesses outside your Operating Territory, acquire or merge with competitive businesses (not using Licensed Marks) within your territory, distribute Approved Services and Products through alternative channels (internet, catalog, telemarketing) within or outside your territory, and service Corporate Accounts within or outside your territory. Franchisees may provide Approved Services and Products in an 'Open Area' (geographic area not an Assigned Area and within a 10-mile radius of your Operating Territory) with prior written approval, provided no Direct Solicitation occurs outside their Operating Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 consecutive years |
| Renewal Term | up to two additional 5 year renewal terms |
| Renewal Fee | 5% of our then current initial franchise fee |
| Renewal Conditions | To renew, the franchisee must be in compliance with the Franchise Agreement, provide 180-270 days prior written notice, sign the then-current form of franchise agreement and related agreements, sign a general release (or estoppel letter if prohibited by law), pay the renewal fee, and meet all other renewal requirements. Owners must also be in compliance with their agreements and personally guarantee the new terms. |
| Transfer Fee | Either: (a) $5,000 if the transferee is an existing franchisee; or (b) $12,500 for all other transfers |
| Transfer Conditions | Transfers require prior written consent from the franchisor. Conditions include: 30 days prior written notice, satisfaction of all accrued monetary obligations, no default by franchisee or owners, transferee bound by agreement terms, transferee owners personally guarantee, franchisee and owners sign a general release, transferee may be required to execute the then-current standard franchise agreement (with same financial terms), transferee must upgrade administrative office to current standards, franchisee and owners remain liable, transferee and managers complete training, payment of the transfer fee, franchisor approval of material terms/price, transferee employees/agents sign confidentiality agreements, franchisee subordinates purchase price payments to franchisor obligations, and the transfer must comply with all applicable laws. |
| Termination for Cause | The franchisor can terminate for cause. Automatic termination without notice occurs for bankruptcy/insolvency events. Termination with written notice (no cure period) occurs for 3 or more prior defaults (even if cured), intentional refusal to comply with agreement terms, operating in violation of laws posing health/safety threats, abandonment, loss of legal right to operate, intentional misrepresentation in disclosure, false/misleading data, unauthorized transfer, disclosure of confidential information, conduct harming the brand, breach of ancillary agreements, felony conviction, dishonest/unethical conduct, failure to complete training, failure to protect confidential information, misappropriation of Licensed Marks, or violation of Anti-Terrorism Laws. Termination with a 10-day cure period applies to failure to pay fees or supplier obligations. Termination with a 30-day cure period applies to other breaches of the agreement, failure to secure an approved administrative office, failure to open by the scheduled date, failure to operate according to standards/laws, operational deficiencies found in inspections, failure to submit reports, underreporting Gross Sales by 5% or more, failure to maintain required insurance, or failure to pay development vendors. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise and for 24 months after its expiration or termination (tolled during non-compliance), the franchisee and its owners are prohibited from having any interest in, operating, managing, funding, or performing services for any competitive business within their Operating Territory, a 25-mile radius of their Operating Territory, or the operating territory of any other Clozetivity Business. This also includes complying with confidentiality, non-disclosure, and non-solicitation covenants. If a court deems 24 months too long, the period will be reduced to 18 months. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner (managing shareholder or partner) is required to be personally responsible for the daily management and supervision of the Franchised Business, dedicating full-time efforts and being on-site. A manager may be hired if they meet franchisor standards, complete initial training, sign confidentiality and non-competition agreements, and agree to on-site management. All Owners must personally guarantee all obligations to the franchisor. |
| Required Suppliers | Franchisees must purchase or lease certain source-restricted goods and services, including System Supplies, Branded Items and Marketing Materials, Point of Sale System, Business Management System, Computer Equipment, Contact Center Services, Service Vehicles, Credit Card Processing, and Insurance, from the franchisor or its designated/approved suppliers. |
| Supply Restrictions | Approximately 75% of initial purchases and leases, and 40% of ongoing operating expenses, are estimated to be from franchisor-specified or designated suppliers. The franchisor may designate itself or affiliates as exclusive suppliers and reserves the right to modify the list of approved suppliers. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. As of December 31, 2021, the franchisor had not received revenue from suppliers of franchisee purchases of source-restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may, at its discretion, offer direct financing for the Initial Franchise Fee. This financing is not guaranteed and is based on internal factors. The franchisor may also provide indirect financing through third parties and receive referral fees. Direct financing is offered via a promissory note, requiring personal guarantees from individual owners if the franchisee is a Corporate Entity. For a Single Territory, up to $15,600 of the Initial Franchise Fee can be financed, with a minimum $23,400 down payment, over a term of up to two years at 10% APR. For a Double Territory, up to $31,200 can be financed, with a minimum $46,800 down payment, over a term of up to two years at 10% APR. Payments are monthly, self-amortized, with no early prepayment penalty. Security includes personal guarantees and a security agreement related to business assets (UCC-1 filing). Default leads to personal liability for the financed amount, interest, collection costs, legal fees, and cross-default of the Franchise Agreement, including loss of franchise rights and waiver of certain legal defenses. |
Clozetivity Franchise Earnings — Item 19
Clozetivity does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Clozetivity does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Clozetivity Litigation & Risk Flags
Clean Litigation RecordClozetivity 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.
Clozetivity System Growth
Total Units
13
Franchised
12
Company-Owned
1
Clozetivity currently operates 12 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 13 | 0 | 13 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$324K
Net Income
$228K
Total Assets
$286K
Audited by Omar Alnuaimi, CPA for year ending December 31.
Clozetivity Franchise — FAQ
The total investment to open a Clozetivity franchise ranges from $81,500 to $157,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $39,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Clozetivity charges a royalty fee of Monthly Royalty Fee Requirement: $400-$2,000 for Single Territory, $400-$4,000 for Double Territory of gross sales, plus a Up to 2% of Gross Sales, currently not assessed contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Clozetivity 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 Clozetivity to ensure you have the most up-to-date version.
Clozetivity does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Clozetivity has been franchising since 2021. The FDD shows an investment range of $81,500-$157,500, a Monthly Royalty Fee Requirement: $400-$2,000 for Single Territory, $400-$4,000 for Double Territory royalty, and no 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 $39,000 and the total investment ranges from $81,500 to $157,500 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 Clozetivity and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Clozetivity or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com