The Tailored Closet Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$177,130 - $270,650
Franchise Fee
$16,958
Min Cash Required
$31,000
Total US Locations
144
Business Summary
The Tailored Closet operates a primarily mobile business focused on the retail design, sale, and installation of organizing units and storage accessories. These services are provided for various areas within residential homes, including closets, pantries, home offices, storerooms, utility rooms, basements, laundry rooms, and attics. The Tailored Closet uses a specialized system and its brand marks to offer these services.
Corporate History
Organized Spaces, LLC, operating as The Tailored Closet, was incorporated in California on January 24, 2006, under the name Closet Tailors, Inc. It underwent several name changes, becoming Closet Tailors, LLC on May 18, 2006, and then Tailored Living, LLC on May 5, 2010. On January 24, 2022, the company changed its name to Organized Spaces, LLC. The Tailored Closet began offering franchises in 2006, initially under the CLOSET TAILORS® brand until 2011. From 2011 to November 2022, it operated as TAILORED LIVING® featuring PREMIERGARAGE®, providing both in-home organizing and garage solutions. Effective November 1, 2022, The Tailored Closet bifurcated its offerings, creating separate franchises for in-home organizing (THE TAILORED CLOSET™) and garage organization (PREMIERGARAGE®).
Financial Overview
Investment Range
$177,130 - $270,650
Franchise Fee (Low)
$16,958
Franchise Fee (High)
$19,950
Minimum Cash Required
$31,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$45,500
Equipment Costs (High)
$104,000
Working Capital
$38,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The Tailored Closet reported net losses of $2,405,599 for 2024 and $1,621,577 for 2023. These losses include operating expenses allocated by the parent company. Despite these losses, the independent auditors issued an unqualified opinion, and the company believes it can meet its cash flow obligations because its parent company has committed to supporting its operating expenses through February 21, 2026.
Financing Details
The Tailored Closet offers direct financing for the Initial Franchise Fee and a portion of the Territory Fee. Franchisees can finance up to $44,000 with no down payment, over a 60-month term. The loan carries a 10% interest rate, resulting in monthly payments of $938.10. There is no penalty for prepaying the note. If a franchisee defaults, they risk losing the franchise, being liable for the unpaid balance, and covering attorney fees and costs. The Tailored Closet does not receive indirect payments from third parties for financing placements and does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
144
Franchised Units
144
Corporate Units
0
Franchising Since
2006
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
The Tailored Closet, as an affiliate of Aussie Pet Mobile, Inc., was involved in one administrative proceeding. On January 25, 2006, Aussie Pet Mobile, Inc., under previous ownership, entered into a Consent Order with the Maryland Securities Division. This order required the franchisor to stop certain actions, rescind specific franchise agreements due to improper disclosure, and implement new compliance procedures. The Consent Order did not include monetary penalties. The Tailored Closet has no other litigation required to be disclosed.
Bankruptcy History
The Tailored Closet has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, The Tailored Closet franchisees must pay a renewal fee and sign the franchisor's then-current franchise agreement, which may include materially different terms and conditions. Franchisees must also be in good standing, meaning they are not in default of their existing agreement, and must make any necessary upgrades to their franchised business to meet current brand standards.
Training & Support Program
Franchisor Assistance
The Tailored Closet provides extensive assistance both before and after a franchise opens. Pre-opening support includes designating the franchisee's territory, approving any showrooms a franchisee chooses to establish, granting use of its trademarks, providing initial training, and supplying a start-up package that contains proprietary information for staff training, access to operating manuals and handbooks, and recommendations for equipment, tools, supplies, and inventory. After opening, The Tailored Closet enforces its brand standards, trains franchisees and their staff on new products, services, and methods, and makes representatives available for ongoing consultation and guidance during business hours. The franchisor may also offer additional on-site training (at the franchisee's expense) and holds annual Conventions or other meetings to discuss industry trends, sales techniques, and marketing. Additionally, The Tailored Closet assists with initial post-opening promotions, maintains a brand website, operates a toll-free customer service number, and provides an electronic portal for sharing manuals, marketing materials, and digital assets.
Initial Training Hours
80.5
Training Location
Hybrid (virtual and in-person at Coppell, TX)
Ongoing Support
The Tailored Closet provides ongoing support by enforcing its trademarks and offering training to franchisees and their staff for new products, services, and operational methods. Franchisees can consult with representatives during normal business hours for guidance on operating and managing their business. The franchisor may also offer additional on-site training, though this would be at the franchisee's expense. Annual conventions and other meetings are held to discuss industry trends, sales techniques, performance standards, and marketing programs. Additionally, The Tailored Closet assists with initial post-opening promotions, provides ongoing advertising information, maintains a brand website, operates a toll-free telephone number for franchisees, and offers an electronic portal for access to manuals, marketing collateral, and other digital assets.
Franchise Requirements
Ideal Candidate Profile
The Tailored Closet prefers franchisees who plan to actively participate in the direct operation and daily affairs of their franchised business, rather than those seeking a passive investment. If a franchisee operates their business as a company, any individuals with direct or indirect control or beneficial interest in the company, including their spouses, are required to sign a Personal Covenant and Guarantee, making them personally liable for financial obligations under the franchise agreement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
The Tailored Closet defines its franchise territories using United States Postal Service ZIP Codes. Each territory is designed to encompass approximately 100,000 households.
Staffing Notes
The Tailored Closet requires that if a franchisee chooses not to personally operate the business, they must employ at least one full-time manager. Franchisees are responsible for hiring additional full-time and part-time staff as needed for proper business operation. The franchisor provides initial training to the franchisee's management personnel, who are then responsible for training other staff. The Tailored Closet explicitly states that it is not a joint employer and has no authority over employee wages, benefits, hours, duties, supervision, work rules, hiring, or firing decisions; these are solely the franchisee's responsibility.