Closets By Design Franchise

The current franchisor, CBD Franchising, Inc., was organized in California on March 31, 2001, when it acquired the franchise assets of Closets By Design Franchising, LLC. That predecessor had offered franchises since January 1998. CBD Franchising began offering franchises in June 2001, while its affiliate Closets By Design, Inc. has operated company-owned locations since April 2001. The franchisor is based in Garden Grove, California, and is part of Home Organizers, Inc.

The business serves homeowners and small businesses seeking closets and other organizational improvements. Franchisees sell, manufacture and install the approved range of organizers, using a showroom and the equipment, materials, design methods and installation processes required by the system. This creates a business with several connected functions: generating inquiries, developing designs, managing sales, scheduling production and completing installations. The franchise model includes a defined territory, with its size and fees set in the individual agreement.

The estimated initial investment is $154,000–$511,000, excluding real-property acquisition. This includes the $20,000 initial franchise fee and an assumed territory fee of $18,000–$35,000, based on the household counts used in the investment estimate. A separately negotiated market development fee may apply when purchasing an unoccupied developed market. Other startup categories include equipment, inventory, showroom improvements, vehicle deposits, opening advertising and additional funds for the first three months.

Initial franchise training covers administration, marketing, basic operations, sales and sales management, design, and production and shop work. The training schedule lists 64 classroom hours and 56 hours of practical instruction. Training takes place in Garden Grove, California, or another designated center, with virtual instruction available if the franchisor considers it necessary. The general manager must successfully complete the program before the location opens. Initial training for the general manager is included; franchisees cover travel, lodging and related expenses, and additional or replacement-manager training can carry separate charges.

Opening support includes the operations manual, consultation on constructing and equipping the location, assistance installing the CBD Manager database and applications, and one to two weeks of on-site training around opening, with timing determined by the franchisor. The franchisee remains responsible for developing the showroom and production operation, hiring staff and completing the opening requirements.

After opening, the franchisor provides phone and email guidance during normal business hours, periodic operational follow-up, access to approved materials and continuing product development. Additional on-site assistance is available subject to the agreement and separate fees. Optional staff programs and required conferences or regional meetings support continued learning; attendance charges and travel expenses may apply.

CBD Manager supports customer scheduling, product and supply ordering, and business management, with software support and reporting resources. Franchisees fund their computer equipment, software lease and maintenance charges. Marketing includes approved creative materials, digital campaign management and the National Promotion and Protection Fund, alongside the franchisee’s local advertising responsibilities. Fund spending is allocated by the franchisor and is not guaranteed within an individual territory.

Closets By Design offers the opportunity to build a local business around tangible improvements customers can see and use every day. Its combination of design, manufacturing and installation gives an owner a role in the full project, from understanding a customer’s space to coordinating the finished installation. The range of closet, office and other organizing products also provides several ways to serve households and small businesses through one operating model.

For an owner who enjoys managing people and processes, the franchise brings together structured sales and design instruction, shop training, operating manuals, business software and an established marketing system. Those resources give a team a common framework for handling inquiries, planning work and delivering projects consistently. The appeal is strongest for someone who wants to develop local customer relationships while taking responsibility for production, staffing and service quality.

Owners and their principals must participate directly in the business. Each location also needs an approved, full-time general manager who completes training and is on duty during operating hours; hiring a manager does not remove the owner’s participation requirements. Entrepreneurs ready for that level of involvement can explore a Closets By Design franchise through FranchiseTop40 and discuss the territory, showroom and operating resources appropriate to their plans.

Explore the ownership requirements in our Closets By Design training and owner-role guide.