Brand Dossier

The Tailored Closet

FDD-based analysis. Item-level data. No franchisor input.

The Tailored Closet costs $177,130 to $270,650 to open (2026 FDD Item 7), with a Variable fee model fee structure and an average unit volume of $506,934 (median $322,264) disclosed in 2026 FDD Item 19. In Line on Fee Structure and Litigation History, Strength on Unit Economics, Concern on Operator Validation, Deal-Specific reads on Term & Exit Terms. Independent analysis, no commissions, no franchisor revenue.
Rank #474 on Entrepreneur 2026Home ImprovementFDD issued March 20, 2026
Ranking ContextRanking from Entrepreneur Media's 2026 Franchise 500. Zorzee is independent and not affiliated with Entrepreneur Media.
Source File2026 Franchise Disclosure Document. Measurement period: Item 19 Covered Period: calendar year 2025 (Jan 1 - Dec 31, 2025).
About the Brand

About The Tailored Closet

Organized Spaces, LLC franchises THE TAILORED CLOSET, a primarily mobile business that designs, sells and installs organizing units and storage and organizing accessories for closets, pantries, home offices, storerooms, utility rooms, basements, laundry rooms and attics. Franchisees use a company-specified, signed vehicle to perform installations and combine digital marketing such as pay-per-click advertising, social media and email campaigns with direct outreach like neighborhood canvassing and home shows to generate sales. The company has offered franchises since 2006, and its franchisees compete with locally-based and regional organizing businesses, large national chains, home builders and remodeling firms, DIY stores, specialty retailers and department stores selling ready-made organizing units.

Source: Entrepreneur 2026 ranking/profile data and Franchise Disclosure Document, rewritten by Zorzee

Investment Summary

The Numbers At a Glance

Total Investment Range
$177,130 to $270,650
FDD Item 7
Franchise Fee
$19,950
Development fee: Initial Territory Fee $55,000 for the first territory if buying from the franchisor (discounted 15% to $46,750 for veterans). Additional Territory Fee is $45,000 for a second territory purchased simultaneously (total $100,000 for first two); otherwise a later additional territory costs the then-current Additional/Initial Territory Fee. No separate up-front area/development fee beyond these territory fees.
FDD Item 5
Royalty + Fees
Variable fee model
About 6% of Gross Revenue in recurring percentage fees (5% royalty + 1% National Ad Fund), subject to per-territory monthly minimums ($500-$1,000/mo royalty + $250/mo ad fund per territory), plus the Technology Fee ($250/mo first territory, $125/mo each additional). Event/usage fees include Convention (up to $2,000/yr, mandatory), $300 insufficient-funds and $300 late-reporting fees, renewal fee ($5,000), and transfer fees.
FDD Item 6
Earnings Claim
Yes
Average Unit Metric $506,934. Median Unit Metric $322,264.
FDD Item 19

Every value here comes straight from the FDD; anything not yet source-verified stays blank rather than estimated. The Pro figures and full interpretation unlock with a Pro membership.

The FDD Data Table

Everything the 2026 Filing Discloses

Every data point Zorzee tracks for this brand, in FDD Item order. Missing source data stays blank; Pro-only interpretation remains locked.

Already a Pro member?Read the full dossier →
ItemData PointValueSource
Item 3Litigation Actions (total) 2 actions disclosed FDD Item 3
Item 5Initial Franchise Fee The Initial Franchise Fee is $19,950. FDD Item 5
Item 5Development Fee Initial Territory Fee $55,000 for the first territory if buying from the franchisor (discounted 15% to $46,750 for veterans). Additional Territory Fee is $45,000 for a second territory purchased simultaneously (total $100,000 for first two); otherwise a later additional territory costs the then-current Additional/Initial Territory Fee. No separate up-front area/development fee beyond these territory fees. FDD Item 5
Item 6Royalty Fee Royalty: greater of (a) 5% of Gross Revenue for the preceding month or (b) $500/month/territory for the first year and $1,000/month/territory thereafter; the monthly minimum may increase with CPI each April 1. FDD Item 6
Item 6National Media Fund Pro FDD Item 6
Item 6Corporate Ad & Development Fund Pro FDD Item 6
Item 6Total Ongoing Fee Burden Pro Calculated (Item 6)
Item 7Total Investment (low) $177,130 FDD Item 7
Item 7Total Investment (high) $270,650 FDD Item 7
Item 8Required Purchases (food/supplies) Pro FDD Item 8
Item 11Franchisor Assistance Pro FDD Item 11
Item 12Exclusive Territory Pro FDD Item 12
Item 12Territory Size Pro FDD Item 12
Item 15Operating Participation Pro FDD Item 15
Item 17Initial Term Length Pro FDD Item 17(a)
Item 17Renewal Terms Pro FDD Item 17(b)-(c)
Item 17Required Remodel at Renewal Pro FDD Item 17(c)
Item 17Termination Triggers Pro FDD Item 17(f)-(h)
Item 17Transfer Fee Pro FDD Item 17(m), Item 6
Item 17ROFR Provisions Pro FDD Item 17(n)
Item 17Post-Termination Non-Compete Pro FDD Item 17(r)
Item 19Revenue Metric Disclosed Yes: Average Unit Metric $506,934 / Median Unit Metric $322,264 FDD Item 19
Item 20Total Franchised Units (2025) 136 FDD Item 20
Item 20Company-Owned Units (2025) 0 FDD Item 20
Item 20Total System Net Unit Growth (YoY) -33 FDD Item 20
Item 20Terminations Pro FDD Item 20
Item 20Agreements Signed, Not Yet Open Pro FDD Item 20
Item 21Audited Financials Pro FDD Item 21
Pro Data Points Locked
The free table maps every data point to its FDD source. Pro fills in the values and interpretation that require the full read.
Lock In My Founding Rate
The Signal Tracker

Five Signals From the 2026 Filing

Each signal turns one part of the filing into a read a buyer can act on. Strength means the disclosed data is favorable. In Line means it is typical for the category. Deal-Specific means the term is populated but you still have to model it against your own deal. Concern means the disclosed data is a real risk. The read is free. The reasoning behind it is the Pro read.

Fee Structure
In Line
FDD Item 6
The Pro Read

Item 6 sets a five percent royalty and a one percent national advertising fund, each subject to per-territory monthly minimums, plus a monthly technology fee, keeping the recurring percentage burden moderate but with a fixed floor at low volume.

Unit Economics
Strength
FDD Item 19
The Pro Read

The Tailored Closet discloses 2025 annual gross sales split by offered type, with average, median, high, low, and quartiles. Single-territory franchisees averaged $506,934 with a $322,264 median (range $14,875 to $2,307,241; 40 franchisees); multiple-territory franchisees averaged $1,499,950 (median $843,261). These are gross sales, not profit, and no single combined systemwide average is provided.

Litigation History
In Line
FDD Item 3
The Pro Read

FDD Item 3 discloses 2 actions. Case names, allegations, procedural posture, and source quotes are locked in Pro.

Operator Validation
Concern
FDD Item 20
The Pro Read

Item 20 shows a system that has contracted for three consecutive years, with franchised outlets falling from 162 to 144 to 136 and only a single signed-but-unopened agreement and two projected openings ahead.

Term & Exit Terms
Deal-Specific
FDD Item 17
The Pro Read

Item 17 gives a ten-year initial term with two five-year renewals, a right of first refusal, no franchisor purchase option, and an unusually broad in-term non-compete reaching anywhere the marks are pending.

Five Reads In. The Reasoning Is Locked.
You can see where each signal lands. Pro gives you the why: the math, the source detail, and what to validate before you act.
Lock In My Founding Rate
Item 19: Earnings Disclosure

What the Earnings Claim Says, and What It Does Not

Item 19 earnings data is disclosed for The Tailored Closet. The full disclosure is free below; Zorzee's read of what it means stays in Pro.

What the Claim Discloses
Average Unit Metric
$506,934
Median Unit Metric
$322,264
Sample Size & Coverage
See notecoverage detail
Single-territory offered-type row for calendar 2025: 40 single-territory franchisees / 40 territories open all year (subset of 66 reporting franchisees / 136 territories). Multiple-territory franchisees disclosed as a separate row (26 franchisees / 96 territories; average $1,499,950, median $843,261, low $59,877, high $7,543,354, total for all territories owned - not per territory). No combined single-plus-multiple average is printed. Gross sales are self-reported by franchisees and not verified for GAAP. FDD Item 19, p.38-40 (PDF p.44-46).
Item 19 Covered Period: calendar year 2025 (Jan 1 - Dec 31, 2025)
High / Low Range
$14,875 to $2,307,241
Met or Beat the Average
16 / 40%
What the Disclosure Excludes
Expenses, net income, owner compensation
Gross revenue is not profit
What the Number Doesn't Tell You
Free, because misreading Item 19 is one of the costliest mistakes a first-time buyer can make.
  • Item 19 reports the disclosed sales or revenue metric. That is not profit, and not a forecast of what you would personally take home.
  • An average and a median are not the same number. Know which you are shown and how far apart they sit.
  • What reaches you is whatever survives operating costs and debt service. Item 19 never shows that figure.
Earnings Read Locked
Pro turns the disclosed fields into a read: whether the average is trustworthy, what the disclosure leaves out, and the year-one revenue number Zorzee would underwrite.
Lock In My Founding Rate
Unit Count and Trajectory

A System That Contracted

Total Units
136
As of 2025, FDD Item 20
Franchised
136
As of 2025, FDD Item 20
Company-Owned
0
As of 2025, FDD Item 20
Total System Net Change (YoY)
-8
As of 2025, FDD Item 20
Total System Units, Latest Available FDD Years
162
2023
144
2024
136
2025

The Tailored Closet trajectory is shown only where source-backed. Missing Item 20 fields stay blank inside the locked layout instead of removing the section.

Source: FDD Item 20 where present. Total system units, franchised plus company-owned. Not financial advice.

Beyond the Net Number
A net unit count is not the same as healthy stores. Pro breaks out openings, closures, terminations, and what the trajectory signals.
Lock In My Founding Rate
Litigation History

What FDD Item 3 Discloses

2 actions disclosed in FDD Item 3. Case-level detail remains locked in Pro.

Case 01
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
Case 02
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
What a Litigation Count Doesn't Tell You
Free, because a raw lawsuit count is one of the most misread lines in any FDD.
  • A count means nothing without scale and time. Always compare it to system size and years covered.
  • The pattern matters more than the total. Repeated allegations matter more than isolated disputes.
  • Concluded and open matters are not the same weight. Open matters require different diligence than old resolved matters.
Litigation Read Locked
Pro gives the case-by-case read: allegations, status, scale context, and whether any pattern matters long before signing.
Lock In My Founding Rate
Editorial Analysis

The Zorzee Read

The Zorzee Take
The editor's synthesis: what the filing actually means once the numbers, diligence, and operator reality are weighed against each other. The Take names what matters, what does not, and what must be validated before any decision.
The Read · Pro
The Inversion
Charlie Munger's rule: to understand a thing, study how it fails. Zorzee stress-tests every brand against forecasting, site selection, management depth, and exit math. The framework is free. Which modes bite hardest for this brand, and the fix for each, is the read.
The Failure-Mode Read · Pro
The Editorial Read Is Locked
Pro unlocks the full Zorzee read on The Tailored Closet: the editorial synthesis, the math behind the numbers, and the failure modes the filing reveals. Zorzee briefs the decision; you make it.
Lock In My Founding Rate

Zorzee editorial. Independent analysis. No franchisor review or approval. Not financial advice.

The Decision

You've Seen the Filing. The Read Is Still the Missing Piece.

The filing tells you what The Tailored Closet costs to open. Pro adds the read on whether the numbers work for you, in your market, and whether this brand is a business or a job you bought.

Already a Pro member?Read the full dossier →
Lock In the Zorzee Pro Founding Rate
$9/month or $90/year
Founding rate, locked for life. Cancel anytime.
Founding rate closes October 1, 2026
This Dossier
  • The full read behind all five Signal Tracker verdicts
  • Pro FDD data points from fee burden through Item 17 and audited financials
  • The Item 19 earnings read where disclosed
  • The litigation and system-health read
  • The Zorzee Take and failure-mode analysis
Your Pro Membership
  • The Zorzee Report Pro every Tuesday, one franchise decoded each week
  • The full Signal Tracker across the portal
  • The Zorzee Files: FDD guides, DCF templates, and pro forma models (coming soon)
Lock In My Founding Rate

Four months of research and more confused than when you started?

You've seen the filings and the numbers. What none of it tells you is whether this is a business that fits your money and your life. That is what fifteen minutes with a Zorzee-approved independent Franchise Consultant is for: whether this brand belongs on your shortlist, and what to validate before it does. Working with one costs you nothing and carries no obligation. Your franchise fee is the same whether you use one or not.

Book My Free Zorzee Clarity Call
How does the consultant get paid, and is your analysis really neutral?

A Zorzee-approved Franchise Consultant never charges you. A franchisor pays the consultant a commission only if and when you decide to invest in a franchise they introduced you to. The analysis on this page earned nothing the moment you read it, no matter what you do next. That firewall is structural, not a promise: Zorzee's editorial earns no commission from franchise placements.

Zorzee earns no commission from franchise placements.

Related Dossiers

Compare the Category

More for Pro readers: Browse the Signal Tracker library and get The Zorzee Report Pro.

FAQ

The Tailored Closet Franchise Questions, Answered

How much does a The Tailored Closet franchise cost?

A The Tailored Closet franchise costs $177,130 to $270,650 to open, disclosed in FDD Item 7 of the 2026 filing, covering the franchise fee, buildout, equipment, and working capital to breakeven. No commissions, no franchisor revenue, independent analysis only.

What are the royalty and fees for The Tailored Closet?

The Tailored Closet uses a Variable fee model fee structure, disclosed in FDD Item 6.

What does The Tailored Closet disclose in FDD Item 19?

Item 19 for The Tailored Closet discloses an average unit volume of $506,934 (median $322,264) in the 2026 FDD. The figure is gross sales, not profit. Zorzee's read of what it excludes is in the Pro dossier.

What is The Tailored Closet's average unit volume?

The Tailored Closet's average unit volume is $506,934 (median $322,264) in the 2026 FDD. The figure is gross sales, not profit. Zorzee's read of what it excludes is in the Pro dossier.

Does The Tailored Closet have any lawsuits or litigation?

The Tailored Closet's FDD Item 3 discloses 2 legal actions. A raw count means little without scale and time, so weigh it against the system's 136 units and the years covered. The case-level detail is the Pro read.

Is The Tailored Closet a good franchise investment?

Zorzee does not rate franchises good or bad; it reports what the filing discloses so you can judge fit. The Tailored Closet shows In Line on Fee Structure and Litigation History, Strength on Unit Economics, Concern on Operator Validation, Deal-Specific reads on Term & Exit Terms. Whether it fits depends on your capital, your market, and your operating style. Independent analysis, no franchisor revenue.