Start a The Tailored Closet Franchise in 2024

2024 Franchise 500 Rank: #360 Ranked #339 last year

Initial investment: $155K - $269K

Units as of 2023: 170 8% over 3 years

The Tailored Closet, (previously known as Tailored Living,) opened its doors in 2006 and began franchising the same year. The company offers home and business owners high-quality storage and organization solutions. The company designs spaces in closets, home offices, family rooms, pantries, basements, laundry rooms, and more. The team offers measuring, design, and installation services tailored to meet each client's specific needs.

The Tailored Closet has a wide breadth of offerings that has resulted in tremendous growth over the years, with more than 175 franchise units opened across the United States and Canada. The company has also received several awards, including the Best of Houzz badge for design. Out of the many expert companies on Houzz, only 3% reach this status.

Potential franchisees have an aptitude for sales and a passion for providing clients with top-notch organizational services.

Why You May Want to Start a The Tailored Closet Franchise

The Tailored Closet is a well-known business with proud franchisees. Franchisees help people in their community live a more organized life through innovative storage methods and other organizational solutions. As a franchisee, you'll be your own boss, with the opportunity to build a business. You can create your business to your preferred size either as a partnership, sole proprietorship, or family business with one or multiple territories. You are also given the opportunity to participate in absentee ownership.

Franchisees experience paid training at The Tailored Closet headquarters in Irvine, California and lifetime support in every area of their business. The Tailored Closet also arranges one year of business coaching by outside vendors, annual conventions, webinars, and helplines to offer support to new franchisees.

What Might Make a The Tailored Closet Franchise a Good Choice?

The Tailored Closet has ranked in Entrepreneur's Franchise 500 multiple times in the past few years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

Franchisees should prepare for financial investment. Franchisees will need to pay a franchise fee and brand royalties. Franchisees will also need to hit the minimum set net worth and cash requirement for franchising with The Tailored Closet.

As you make your decision concerning whether to open a franchise with The Tailored Closet, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

How Do You Open a The Tailored Closet Franchise?

The franchising process will take time to complete. Be prepared for interviews with upper management, at which point you will review the Franchise Disclosure Document. After a successful interview, you may be invited to a discovery day to explore the opportunity further. You will also have time to speak with other franchisees to get their side of the franchise experience with The Tailored Closet.

Before you can open your The Tailored Closet franchise, you must attend a training at the home office in Irvine, California to learn how to operate your business. The Tailored Closet staff will be involved as you train and prepare to open your franchise.

Company Overview

About The Tailored Closet

Industry	Home Improvement
Related Categories	Organization/Storage Systems, Miscellaneous Home-Improvement Businesses
Founded	2006
Parent Company	Home Franchise Concepts
Leadership	Andy Skehan, CEO
Corporate Address	19000 MacArthur Blvd., #100 Irvine, CA 92612
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest

Business Overview

Franchising Since	2006 (18 years)
# of employees at HQ	300
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Canada
# of Units	170 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a The Tailored Closet franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$19,950
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$155,220 - $268,675
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$350,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$111,220 - $224,675
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	15% off initial franchise and territory fees
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	4%-7%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	1%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing	The Tailored Closet offers in-house financing to cover the following: franchise fee
Third Party Financing	The Tailored Closet has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

Classroom Training	106.25 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Online Support Security & Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	2
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes