What does the high end of the equipment investment include for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
nce deposit and payment for required insurance.
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- The high end includes the equipment required for manufacturing of the products to be sold by your Franchised Business and its installation. The low end assumes that your Franchised Business will be a non-manufacturing franchise and equipment charges will be less.
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- This includes the initial hardware and accessories that must be on hand for retail sales. The high end assumes that you will be a manufacturing franchise and therefore your investment in raw materials will be greater.
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–22)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the shop equipment investment ranges from $1,000 to $350,000. The high end of this investment includes the equipment required for manufacturing the products to be sold by your Closet Storage Concepts franchise, as well as the installation costs for that equipment. The lower end of the range assumes the franchise will be a non-manufacturing location, which would result in lower equipment charges.
This means that a franchisee who chooses to operate a manufacturing location will face significantly higher initial equipment costs compared to a non-manufacturing location. The $350,000 upper limit for shop equipment represents a substantial investment.
Prospective franchisees should carefully consider whether they want to operate a manufacturing or non-manufacturing location, as this decision will greatly impact their initial investment. It would be prudent to discuss with Closet Storage Concepts the specific equipment needed for each type of location and to understand the potential revenue and profit differences between the two models to make an informed decision.