Are owners included in the 'Staffing Levels' calculation for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Staffing Levels represent the full-time equivalent headcount for each of the listed functions. Owners are included in Staffing Levels.
- a. Installers are defined as the individuals who deliver the product to the customer and install the product in the customer's home. Installers are generally paid hourly.
- b. Sales Designers are the individuals who initially interact with the customer, determine their needs and tastes, design and sell the product to the customer. Sales Designers are generally paid on a salary plus commission basis.
- c. Administrative Employees include office staff, bookkeepers, office managers, and management if applicable. Administrative Employees are generally paid on either an hourly or a salary basis, depending on their responsibilities.
- d. Shop employees operate machine equipment and produce the components of the product. Shop employees are generally paid hourly.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 49–55)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, owners are included in the calculation of staffing levels. The FDD specifies that 'Staffing Levels represent the full-time equivalent headcount for each of the listed functions. Owners are included in Staffing Levels.' This means that when Closet Storage Concepts calculates the average, high, and low staffing numbers for its franchises, it counts the owners as part of the workforce.
For a prospective Closet Storage Concepts franchisee, this is an important consideration when evaluating the potential labor requirements and associated costs. While Table 7 details payroll expenses and explicitly excludes owner compensation, the staffing levels in Table 9 provide a more comprehensive view of the human resources needed to operate the business, including the owner's contribution. This can help a franchisee understand the total workload and whether they will need to hire additional staff to cover all responsibilities.
Table 9 provides further details on staffing levels, breaking them down by function: Installers, Sales/Designers, Administrative, and Shop. The average staffing count across the five representative locations is 4.6 installers, 3.6 sales/designers, 2.8 administrative staff, and 3.7 shop employees, totaling 14.7. The highest total staff count among these locations was 23.0, while the lowest was 9.5, with a median of 13.0. Understanding these figures, including the fact that they incorporate the owner, allows potential franchisees to better plan their staffing strategy and budget accordingly.
It is important to note that while owners are included in the staffing levels, their compensation is not included in the payroll expenses. This distinction is crucial for accurately assessing the overall financial performance and profitability of a Closet Storage Concepts franchise. A franchisee should carefully consider both the staffing levels and the payroll expenses, along with their own potential compensation, to determine the true cost of labor and its impact on their bottom line.