Owning a modern custom closet franchise might be more affordable than you think
On the surface, our total investment ranges for a small territory starts at around $68,000. A large territory starts at $129,450. But there’s more to that story. Investment in a business, any business, particularly a franchise, is really broken up into three categories of numbers. Let’s take a look at the Up Closets franchise costs associated with starting this business.
Franchise Fee
We charge $39,000 for a small territory franchise fee. It’s an exclusive territory and perfect for smaller markets like Huntsville, AL or Lexington, KY. These markets typically have less than half a million people in them.
We sell a large territory in bigger markets, like Houston, TX or Denver, CO for a $78,000 franchise fee. This is the equivalent of buying 2 territories but gets you three times the size of a small territory. These markets typically have between 700,000 and a million people in them.
We’re looking for a certain number of home-owned households in our territories. We build territory maps based on zip code demographics and are detailed in what we’re looking for. We evaluate homeownership percentages, owner-occupied rates, average income, average home price, percent college educated, and more to ensure we have territories capable of scaling a business to a profitable level in a short period of time.
Costs to Open
The Up Closets franchise costs associated with opening the business include things like marketing costs, a branded van, a set of tools, travel for training, insurance, and more. These costs range from $68,850 to $128,050 and are detailed in Item 7 of our Franchise Disclosure Document below.
Working Capital
Getting your business up and running successfully requires working capital for the first four to six months as you ramp your business up. We don’t like our franchise owners to underestimate how much money they need to pay the bills at home, order materials, do marketing, etc so we err on the side of a conservative working capital budget.
“We work had to push new franchise owners to profitability as quickly as we can but everyone’s experience is unique depending on the market, their skill set and the team they build to run the business.” – Thomas Scott, Founder of Up Closets Franchise
So How Much Do You Need?
If you want to scale a business and you are willing to hire people and go aggressive on your marketing spends, you need more working capital than somebody who’s planning to be an owner-operator and is going to do a lot of the work themselves.
Each business is required to have an experienced installer, preferably a trim carpenter, cabinet installer or some type of handyman with carpentry experience. And we encourage people to have more than one commission-based salesperson.
As the owner, you should know how to do each of those functions, but your primary role should be to lead, direct, and manage the business – not do the work inside a customer’s home yourself. We have a very good recruiting software system that allows you to find and identify people with the right skill sets, and our training program for franchise owners includes extensive people management classes to hone your skills.
“I focus on running my business and building relationships with customers, while leaving the installations to my skilled team. This model allows me to grow my franchise without getting caught up in the day-to-day hands-on work, and it’s been a key part of my success.” –Cole Sossamon, Up Closets Charlotte
What are my financing options?
While we don’t offer financing directly, we are SBA loan approved. With the low costs of ownership, the amount of financing needed is affordable and banks are far more likely to finance a business that is backed by a brand with years of success. To start a conversation about financing your Up Closets franchise costs, simply fill out an inquiry form on this website and we will get back to you shortly.
Want a deeper dive into the costs & fees?
For a more detailed overview of the costs & fees associated with an Up Closets franchise, please review Item 7 from our most recent franchise disclosure document below. These numbers are for a small territory:
| Type of Expenditure | Low Estimate | High Estimate | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $39,000 | $39,000 | Lump Sum via Wire Transfer | At the signing of the franchise agreement | Franchisor |
| Your Training Expenses | $1,500 | $4,000 | As arranged | As Incurred | Third parties for travel and lodging |
| Equipment and Tools | $4,000 | $4,000 | As supplier / vendor requires | As Incurred | Suppliers / vendors |
| Vehicle and Customization (wrap) | $2,500 | $8,000 | As arranged | As arranged | For vehicles - paid to supplier |
| Initial Inventory and Spare Parts | $5,000 | $7,500 | As arranged | As arranged | Third-party suppliers |
| Business Licenses and Permits | $150 | $1,500 | As arranged | As Incurred | Third-party suppliers |
| Computer Systems software set up | $100 | $1,300 | As arranged | As arranged | Third-party suppliers |
| Professional Fees | $500 | $1,500 | As arranged | As Incurred | Third-party legal and accounting firms |
| Start up Marketing Fee | $5,000 | $7,500 | Lump Sum via wire transfer | At the signing of the franchise agreement | Franchisor |
| Insurance | $500 | $2,500 | As arranged | As arranged | Third-party suppliers |
| Software / Recruitment Ads | $600 | $1,250 | |||
| Additional Funds 3 Months | $10,000 | As arranged | As arranged | Cash reserves in franchisee's banking account to pay ongoing payroll, suppliers and vendors | |
| Total | $68,850 | $128,050 |
For a detailed look at the costs and fees associated with a large territory, see below:
| Type of Expenditure | Low Estimate | High Estimate | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $78,000 | $78,000 | Lump sum via wire transfer | At the Signing of the Franchise Agreement | Franchisor |
| Your Training Expenses | $500 | $2,500 | As arranged | As Incurred | Third parties for travel and lodging |
| Equipment and Tools | $4,000 | $12,000 | As supplier / vendor requires | As Incurred | Suppliers / vendors |
| Vehicle and Customization (wraps) | $2,500 | $8,000 | As arranged | As arranged | For vehicles - paid to supplier |
| Initial Inventory | $5,000 | $10,000 | As arranged | As arranged | Third-party suppliers |
| Business Licenses and Permits | $160 | $1,500 | As arranged | As Incurred | Third-party entities |
| Computer Systems and Software Set-up | $100 | $1,300 | As arranged | As arranged | Third-part suppliers |
| Professional Fees | $500 | $1,500 | As arranged | As Incurred | Third-party legal and accounting firms |
| Start Up Marketing Fee | $7,500 | $7,500 | Lump sum via wire transfer | At the Signing of the Franchise Agreement | Franchisor |
| Insurance | $500 | $2,500 | As arranged | As arranged | Third-party suppliers |
| Software and Recruitment Ads | $700 | $900 | Third-party suppliers (career plug and design software) | ||
| Additional Funds - 3 months | $30,000 | $50,000 | As arranged | As arranged | Cash reserves in franchisee's banking account to pay ongoing payroll, suppliers and vendors |
| TOTAL | $129,450 | $175,700 |
Ready to learn more About the Up Closets Franchise Cost?
If you are ready to learn more about the detailed Up Closets franchise cost of ownership, reach out by filling out the form or giving us a call. We’ll send you the entire Franchise Disclosure Document for your review and follow up to see if this business makes sense for you.
