What comprised the inventory for Closet Storage Concepts as of December 31, 2022?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
amount of $37,486. Payments on this note commence in February 2023, and are due in bi‐weekly installments of $1,630 through December 2023. There is no interest charted on this note.
Inventories
Inventory is comprised primarily of raw materials (e.g., laminate, accessories, closet hardware) which have not been charged to specific jobs as well as logo and promotional items sold to the franchises. Due to the custom nature of the Company's business model, there are no finished goods inventory and work‐in‐progress inventory is minimal. Inventories are stated at t
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the company's inventory as of December 31, 2022, primarily consisted of raw materials such as laminate, accessories, and closet hardware that had not yet been assigned to specific jobs. It also included logo and promotional items intended for sale to franchisees. The total value of the inventory at that time was reported as $46,012.
Because Closet Storage Concepts operates with a custom business model, the company maintains minimal work-in-progress inventory and does not have finished goods inventory. This is due to the products being made to order. The company values its inventories at the lower of either cost or market value.
For accounting purposes, Closet Storage Concepts uses the first-in, first-out (FIFO) method to determine the cost of its inventory. The market value is based on the most recent selling price. This valuation method is a standard accounting practice, ensuring that the inventory is reported accurately on the company's financial statements.