What is the total estimated initial investment range for a Closet Storage Concepts franchise?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditures | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Franchise Fee2 | $40,000 to $49,500 | Lump Sum | Upon Signing Franchise Agreement | Us |
| Travel and Living Expense While Training3 | $3,000 to $5,000 | As Agreed | During Training | Third Parties |
| Real Estate | $15,000 to | As Agreed | Before Opening | Various |
| Improvements4 | $35,000 | Contractors | ||
| Office Equipment | $1,000 to | As Agreed | Before Opening | Third Parties |
| and Supplies5 | $1,500 | |||
| Computer Hardware | $3,700 to | As Agreed | Before Opening | Third Parties/Us |
| and Software6 | $4,100 | |||
| CAD Design | $3,250 to | As Agreed | Before Opening | Us |
| Software Keys7 | $9,750 | |||
| Pallet Lifter and | $1,000 to | As Agreed | Before Opening | Third Parties |
| Fork Lift8 | $10,000 | |||
| Van9 | $1,600 to $3,700 | Lump Sum | Before Opening | Auto Dealer |
| Signs and Graphics10 | $2,000 to $9,000 | As Agreed | Before Opening | Third Parties |
| Opening Showroom Displays11 | $5,000 to $32,000 | Lump Sum | Upon delivery to your store, and receipt of invoice. | Us/Third Parties |
| Store Displays | $1,200 to | As Incurred | Before Opening | Third Parties |
| Accessories12 | $2,500 | |||
| Grand Opening Advertising13 | $10,000 to $20,000 | As Incurred | During the period beginning 30 days before and ending 30 days after Opening | Third Parties |
| Architect’s Fee and | $0 to | As Incurred | Before Opening | Third parties |
| Engineering14 | $3,000 | |||
| Miscellaneous | $4,000 to | As Incurred | Before Opening | Third parties |
| Opening Costs15 | $6,000 | |||
| Insurance16 | $1,800 to $5,000 | As Incurred | Prior to Opening | Insurance Company |
| Type of | Amount | Method of | When Due | To Whom Payment |
| Expenditures | Payment | is to be Made | ||
| Shop Equipment17 | $1,000 to | As incurred | Before | Approved |
| $350,000 | Opening | Distributors | ||
| Opening Inventory18 | $1,000 to | Lump Sum | Before | Approved |
| $25,000 | Opening | Distributors | ||
| Legal and | $2,000 to | Lump Sum | As | Attorney and |
| Accounting19 | $5,000 | Incurred | accountant | |
| Additional Funds (up to | $20,000 to | As Incurred | As Agreed | Third Parties |
| 3 months)20 | $50,000 | |||
| Total Estimated | $116,550 to | |||
| Initial Investment | $626,050 |
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 estimated total initial investment to open a franchise ranges from $116,550 to $626,050. This broad range accounts for the various expenditures a new franchisee will incur before opening their Closet Storage Concepts business. These expenses include the franchise fee, travel and living expenses during training, real estate costs, and improvements to the premises.
Additional costs contributing to the initial investment include office equipment and supplies, computer hardware and software, CAD design software keys, and a pallet lifter and forklift. Furthermore, franchisees must factor in the cost of a van, signs and graphics, opening showroom displays, store displays, accessories, and grand opening advertising. The estimate also considers potential architect's fees, engineering costs, miscellaneous opening costs, and insurance.
The higher end of the range accounts for significant investments in shop equipment and opening inventory, which can greatly vary depending on whether the franchisee chooses to operate a manufacturing or non-manufacturing location. Finally, the initial investment also includes funds for legal and accounting services, as well as additional funds to cover operating expenses for the first three months of business. These figures do not include an owner's salary or any royalty payments owed to Closet Storage Concepts.