What was the total reported expense for payroll for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2,734,996 | |
|---|---|
| Royalties | 1,672,426 $ 4,407,422 |
CLOSETS UNLIMITED OF NEW JERSEY, INC. SCHEDULE OF COST OF SALES YEAR ENDED DECEMBER 31, 2023
| Beginning inventory | $ 46,012 |
|---|---|
| Purchases of materials and supplies | 795,302 |
| Ending inventory | (49,546) |
| Total materials and supplies | 791,768 |
| Other costs | |
| Labor | 596,357 |
| Commissions | 9,454 |
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 total reported payroll taxes expense was $99,802. In addition to payroll taxes, Closet Storage Concepts also reported expenses for labor, commissions, and employee benefits and retirement.
Specifically, the expenses listed include labor costs of $596,357, commissions totaling $9,454, and employee benefits and retirement expenses amounting to $35,311. These figures, along with payroll taxes, contribute to the overall costs associated with staffing and compensating employees within the Closet Storage Concepts business model.
Prospective franchisees should consider these payroll-related expenses when evaluating the financial performance of a Closet Storage Concepts franchise. Understanding the breakdown of these costs can help in accurately forecasting operating expenses and assessing the profitability of the business. It's important to note that these figures reflect the company's expenses and may not directly translate to the expenses a franchisee will incur, as staffing needs and compensation structures can vary.