What does the inventory of Closet Storage Concepts primarily consist of?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
approximately $250 to $700 through June 2026. Payments are expected to continue and be paid in full. There is no interest charged 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 the lower of cost or market value. Cost
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 is mainly raw materials. These raw materials include items like laminate, accessories, and closet hardware. These materials have not yet been assigned to specific jobs. Additionally, the inventory includes logo and promotional items that are sold to the franchises.
Because Closet Storage Concepts operates with a custom business model, the company maintains minimal finished goods inventory and work-in-progress inventory. The document specifies that the company values its inventories at the lower of cost or market value. The cost is determined using the first-in, first-out (FIFO) method, and the market value is determined by the most recent selling price.
The FDD states that the inventory at December 31, 2024, was valued at $68,130. Understanding the composition and valuation of inventory is important for prospective franchisees as it impacts the franchisee's initial investment and ongoing operational costs.