Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 11
We require that you obtain Quick Books accounting software.
From the filings
+9.524% franchised outlets YoYHQ-led decisions
Closet Factory
Home servicesCloset Factory's 2026 FDD shows a 92-unit franchised home-services network with no company-owned locations. The filing names QuickBooks as a required accounting system and sets computer-system specifications from the franchisor, with purchasing authority concentrated at the corporate level. Software vendors targeting this brand should understand the designated-supplier procurement model and the executives named in Item 2.
For software vendors selling into US franchise brands.
Live signals
Total units
92
92 franchised
Franchised outlet growth
+9.524%
Item 20, last two year-ends
AUV
—
Item 19
Royalty
6.75%–13.5% component; full terms unconfirmed
percentage component
Ad fund
—
percentage component
Initial fee
$66K
per unit
Investment range
$532K–$904K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ordinary royalty terms
6.75% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Franchisor behaviours
What the franchisor requires
20 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 13 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
There are no contractual limitations on our right to access the information.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are an Authorized Supplier for specific jigs and manufacturing pieces.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and our affiliates reserve the right to receive rebates, incentive amounts, discounts and other economic benefits from any supplier.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
1Item 8
Assuming that the estimated minimum initial costs are within the ranges described in Item 7, we would estimate that the proportion of required purchases and leases to all purchases and leases by you in the establishment and operation of your Closet Factory franchise to be 1-2%.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We can require you to pre-pay any reasonable charges connected with our review and evaluation of any proposal.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You can request the approval of an item, service or supplier by notifying us in writing and submitting the information or materials we request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
Your obligations on 17.1 - 17.4 Cease operations; cease use of Marks; de-identify business and termination/non-renewal remove signage; pay amounts owed; return Operations Manual and materials; transfer phone numbers and electronic listings to us or our designee; cancel all fictitious business name registrations.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 9
Inspections and Audits Franchise Agreement Sections 13.1 Items 6 and 17 - 13.2 t.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 17
The agreement Operations Manual and Closet Factory System are subject to change by us and you must promptly comply.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You are solely responsible for selecting your business premises, although you must obtain our written approval of the location of your business.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
If we allow such use in the future, we can require that any such use be through us, using a designated Internet/Intranet Service Provider (which can be us or an affiliate), and that all pages be accessed through a designated site or meet our specifications.
Is a minimum grand opening advertising spend required?
YesItem 6
Grand Opening Minimum of $40,000 Within 3 months Payments for local advertising and marketing may Marketing of opening be payable to local suppliers.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
Outlet no less than amount equal to 15% of Gross Receipts, less your Marketing Fund Contributions and contributions to Franchise Marketing Groups.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If one or more FMGs (local, regional, national, or otherwise) are formed covering your Closet Factory Outlet, you must join and actively participate and contribute any required amounts.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
ITEM 6 2026 CLOSET FACTORY FDD 2 OTHER FEES (1) Name of Fee Amount Due Date Remarks Royalty Equal to the greater First day If we do not receive your royalty payment when 6.75% of Gross Receipts (2) following the close due, we may debit your account by an amount or $975 per week. of each week. equal to the greater of:
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
Your Closet Factory Outlet must be personally managed on a full-time basis by a supervisorial or managerial employee who has successfully completed mandatory training and met our then-current standards.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
There are no contractual limitations on our right to access the information.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
You must pay any fee we may charge you and other franchisees to defray the direct costs 2026 CLOSET FACTORY FDD 4 (1) Name of Fee Amount Due Date Remarks of providing this remedial training.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
You must attend all meetings designated by us as mandatory (including each Closet Factory Regional Leadership Conference), unless otherwise excused by us.
The filing answers no to 1 question
- Is there a franchisee advisory council, association or committee?Item 11
The vendor opportunity at Closet Factory
Closet Factory operates 92 franchised locations, all of them franchised with no company-owned units. The 2026 FDD reports franchised-outlet growth of 9.524% year over year. The Item 19 financial performance representation is made in the filing, but the specific cohort figure is not summarized here.
For software vendors, the addressable market is 92 franchise locations plus the franchisor's corporate operations. The franchisor sets technology specifications centrally, which means a sale to the corporate office can influence the entire network.
Who controls software purchasing
Item 2 of the FDD names John F. La Barbera as Co-Chief Executive Officer and Chief Financial Officer, Gregory K. Stein as Co-Chief Executive Officer, Jeff Henderson as President, and Dan Grandon as Strategic Development Officer. The dual CEO/CFO role held by La Barbera suggests financial and operational technology decisions may run through his office.
The franchisor requires franchisees to purchase, use, maintain, and update software, computer, and back-office systems meeting its specifications. That central specification authority makes the corporate team the primary buyer for any technology that must be deployed across the network.
Tech named in the FDD, and what is actually required
Item 11 of the FDD requires franchisees to purchase QuickBooks accounting software. The filing also requires franchisees to purchase, use, maintain, and update software, computer, and other systems, including back-office systems, meeting franchisor specifications. A high-speed internet data connection is required at the franchisee's office location, sufficient to support all required software and computer programs, along with dedicated telephone data lines.
No other software systems are named in the filing. The franchisor's specification authority means additional systems may be designated over time, but the only named required software is QuickBooks.
Procurement, renewals, and timing
Item 8 establishes a designated-supplier model. Franchisees must purchase, use, and offer designated equipment, products, and services as specified by the franchisor. The franchisor may designate single or multiple suppliers for any item or service and may concentrate purchases with one or more suppliers. Those suppliers may include the franchisor or its affiliates. Franchisees may propose a supplier for approval.
The filing states there are no goods or services required to be purchased for which the franchisor or its affiliates are the only authorized supplier. Computer hardware and software must be purchased or leased to meet franchisor specifications.
Initial franchise terms are 5 years. Renewal is available for a successor franchise of 5 years, subject to compliance with all agreements, current operational and training requirements, notice of election to renew, satisfaction of monetary obligations, signing a new agreement and general release, and payment of a $7,000 renewal fee. Renewal windows are natural moments when franchisees and the franchisor may revisit technology contracts.
How to read the Closet Factory FDD
The embedded PDF below is Closet Factory's 2026 Franchise Disclosure Document. Item 2 lists the officers, Item 8 sets the supplier restrictions, Item 11 covers technology and training requirements, Item 17 governs renewal and termination, Item 19 contains the financial performance representation, and Item 20 reports outlet counts. For a ranked target list of franchise systems that fit your software, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Closet Factory, answered from the filing
Item 2 names John F. La Barbera (Co-CEO and CFO), Gregory K. Stein (Co-CEO), Jeff Henderson (President), and Dan Grandon (Strategic Development Officer). The franchisor sets computer-system specifications, so corporate leadership is the primary buying center.
The FDD requires QuickBooks accounting software and mandates purchase, use, maintenance, and updates of software, computer, and back-office systems meeting franchisor specifications. A high-speed internet connection is also required. No other systems are named in the filing.
The 2026 FDD reports 92 franchised locations and no company-owned units. Franchised outlets grew 9.524% year over year.
Item 8 uses a designated-suppliers model. Franchisees must purchase specified equipment, products, and services from suppliers designated by the franchisor, which may include the franchisor or its affiliates. Franchisees may propose suppliers for approval.
Initial franchise terms run 5 years, with renewal available for another 5 years upon compliance, notice, a general release, and a $7,000 renewal fee. Renewal periods are natural moments for technology re-evaluation.
The embedded PDF viewer below contains Closet Factory's 2026 Franchise Disclosure Document. Review Items 2, 8, 11, 17, and 19 for officer names, supplier rules, technology requirements, renewal terms, and financial performance representations.
Source
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Related Home services brands
Primary franchise filings · updated October 2026. Read the original filing for definitions, conditions, and qualifications.