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What was the total amount spent on materials and supplies for Closet Storage Concepts?

Closet_Storage_Concepts Franchise · 2025 FDD

Answer from 2025 FDD Document

| Franchise fees | 5,000 | | Royalties | 1,724,442 | | Advertising contributions | 59,600 $ 5,032,253 |

CLOSETS UNLIMITED OF NEW JERSEY, INC. SCHEDULE OF COST OF SALES YEAR ENDED DECEMBER 31, 2022

Beginning inventory Purchases of materials and supplies Ending inventory Total materials and supplies $ 41,218 976,505 (46,012) 971,711
Other costs
Labor 509,473
Commissions 44,752
Employee benefits and retirement 29,840
Freight and shipping 7,288
Product development 6,309
Payroll taxes 44,274
Rent and utilities 121,194
Total other costs 763,130 $ 1,734,841

CLOSETS UNLIMITED OF NEW JERSEY, INC.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)

What This Means (2025 FDD)

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the total expenses for materials and supplies are detailed in the financial statements. In 2023, Closet Storage Concepts spent $976,505 on purchases of materials and supplies. After accounting for the beginning and ending inventory, the total cost of materials and supplies used was $971,711.

In 2022, Closet Storage Concepts' purchases of materials and supplies amounted to $795,302. Factoring in the beginning and ending inventory for that year, the total materials and supplies used came to $791,768. These figures reflect the direct costs associated with the materials required to manufacture and install the organizational and storage products that Closet Storage Concepts offers.

Prospective franchisees should consider these figures in relation to potential revenue and sales projections to understand the cost of goods sold. Understanding these costs is crucial for projecting profitability and managing cash flow. Additionally, it's important to note that these costs may fluctuate based on market conditions, supplier pricing, and changes in inventory management practices.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.