Updated August 18, 2019.
Detailed Estimates of California Closets Franchise Costs Based on Item 7 (Estimated Initial Investment) of California Closets’ 2019 Franchise Disclosure Document
For a Manufacturing and Showroom Franchise
1. Initial Franchise Fee: $70,000
- The Initial Franchise Fee for a Manufacturing and Showroom franchise is $70,000 for your first Unit. The fee for each additional Unit you add to your Franchise Agreement is $35,000.
- Qualified honorably discharged veterans will receive a 10% discount on the Initial Franchise Fee per Unit.
2. Initial Training Fee: $12,500
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- This fee covers the cost for you and up to two additional persons.
- You are responsible for your and your attendees’ travel, meal, and lodging expenses associated with attending training.
3. Rent: $50,000 to $120,000
- Manufacturing facilities are typically located within the Marketing Area, in lite-industrial zoned areas in close proximity to multiple service areas.
- The estimate shown in the chart is for a Manufacturing and Showroom franchise which contains between 5,000 to 15,000 square feet.
- The estimate does not include lease deposit, taxes, or insurance.
- Rental rates vary considerably depending upon the type of location and the market conditions affecting commercial property in your area.
- This space may include offices for the Franchised Business.
4. Improvements: $15,000 to $150,000
- Leasehold improvements include construction items such as flooring, lighting, drywall, cabinets, countertops, electrical systems, ventilation systems, and dust extraction.
- Your cost for leasehold improvements to an existing building will vary depending upon the size of your Manufacturing and Showroom franchise and its geographic location.
- If you are converting an existing business into a Manufacturing and Showroom franchise, your costs may be higher or lower depending on the available assets, fixtures, and conversion costs.
- Construction costs in some areas of the country may exceed these estimates.
- Your landlord may provide many or all of these tenant improvements at no additional cost to you.
5. Inventory and Supplies to Commence Operations: $50,000 to $150,000
- Inventory will include items such as prefabricated wood panels, door and drawer fronts, moldings, and edgebanding.
6. Equipment, Tools, and Furnishings: $10,000 to $125,000
- You will need various equipment for the Manufacturing and Showroom franchise, including an edge-banding machine, VB machine, multi-drill, several different saws, forklift (typically leased), compressor and air system, dust extractor, pallet racks, hand tools, and other items. You will also need office equipment, desks, and chairs.
- The franchisor will provide you with a list of equipment and approved vendors after you sign the Franchise Agreement.
7. Technology Platform: $15,000 to $51,000
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- You must subscribe to CC Dashboard and use CAD software in your Franchised Business.
- CC Dashboard is a web-based, full-cycle customer relationship management software database application. The maximum estimate in the chart includes the cost of CC Dashboard for three users (approximately $619 per user per year, subject to increase by the vendor), four CAD keys, and five computers.
- You must have a broadband Internet connection for access to the franchisor’s extranet and other programs.
- Renewing franchisees and buyers of existing California Closets businesses will also incur a one-time charge to convert their existing customer database to the CC Dashboard application. The franchisor estimates that this conversion will cost from $500 to $3,000. The owner of the source code for CC Dashboard will bill you directly for the conversion charge.
- You must also use the approved accounting software as required by the franchisor in the Operations Manual and which ranges from $120 to $720.
8. Motor Vehicle: $15,000 to $40,000
- You will need at least one van for the Franchised Business. The van must bear decals and be equipped and designed in accordance with the franchisor’s standards and specifications.
- If you elect to lease rather than purchase the van, your initial costs will likely be less than shown in the chart.
- The maximum estimate above is for two vans.
9. Utility Deposits – Other Prepaid Expenses: $500 to $5,000
10. Pre-Opening Employee Wages: $10,000 to $60,000
- You will need to bring on staff to help you prepare for opening. The estimate is for three full-time staff members’ wages for three months. These may include a general manager, production manager, and a designer.
11. Advertising/Promotion: $20,000 to $80,000
- The amount spent on initial advertising will depend on the size of your market area and may include social media, search marketing programs, direct mail, local print, radio and television, an initial supply of marketing materials, and a showroom event.
12. Travel and Lodging for Training: $4,000 to $10,000
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.13. Insurance: $10,000 to $16,000
- The estimate is the first year’s premium for liability insurance only. The franchisor also requires other types of insurance, but it does not have adequate data from franchisees to provide a meaningful estimate of the cost.
- The cost of workers’ compensation insurance will vary according to the number of employees of the Franchised Business and may vary widely from state to state.
- The franchisor also encourages you to secure employment practices insurance but has not included an estimate in this Item as it varies widely from state to state and based upon the number of employees.
14. Legal and Accounting: $1,000 to $10,000
15. Additional Funds – 3 Months: $10,000 to $30,000
- This is an estimate of additional funds you will need before opening and during the initial period of operation, which the franchisor defines as three months from the opening of the franchise.
- You will have ongoing expenses for rent, utilities, materials, advertising and promotion, payroll, taxes, and benefits for employees.
- The estimate does not include any finance charges and related costs of such financing if you obtain financing for the initial investment.
- You should not expect to draw income from the Franchised Business during the initial phase.
- The franchisor based this estimate in part on information reported to it by its existing franchisees. It cannot guarantee that you will not incur additional expenses.
- Your actual costs will depend on factors such as your conformance with the franchisor’s recommended methods of doing business; the demographics and economic conditions in the Marketing Area; competition; your management skill, experience, and business acumen; the prevailing wage rate in your area; and sales levels reached by the Franchised Business during the initial period.
16. Total: $301,000 to $949,500
For a Design, Sell, and Install (DSI) Franchise
- The total estimated initial investment necessary to begin operation of a design, sell, and install California Closets franchise ranges from $170,000 to $619,500.
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