Closets by Design `Opens Doors' for Independent Business Operators, Launches New Strategy to Promote Conversions to Franchise Model
Los Angeles – Fueled by a series of success stories within its franchise system, Closets by Design, the nation's leader in the closet organizing and storage remodeling industry, is concentrating efforts to recruit independent business operators in the closet segment for conversion to its proven franchise model. This strategy complements the 31-unit chain's traditional franchisee recruitment efforts.
The move to reach out to the owners of independent home organization companies was fueled by a series of successful conversion case studies within the Closets by Design franchise system. In one case, an independent operator in Washington, DC who had run his own closet business for 10 years, converted to the Closets by Design franchise model. Within the first six months of franchise operation, he tripled his revenues and, in five years, grossed nearly $6 million annually before selling the franchise to his partner.
"An increasing number of independent operators began contacting us wanting to convert to the Closets by Design brand," said Jerry Egner, president of Closets by Design. "So we figured, why not go to them proactively? These independent operators realized that the support we offer in our proven best practices of marketing, sales, manufacturing and installation, coupled with the brand recognition of and experience that comes with over 25 years of industry experience, gives them an edge in the marketplace that you just don't have when you're on your own."
Last year alone, Closets by Design re-organized more than 28,000 closets, garages and home offices around the country, pulling in more than $90 million in revenue from its 28 franchised and three corporate locations. Last year's revenues represent more than triple growth of system-wide sales over a five-year period.
In another conversion success story case, a father and two sons who operated an independent closet design company out of Colorado met Egner at a home organization trade show. After discussions with Egner and due diligence, they converted their four-year-old business to the Closets by Design franchise model.
"After the conversion we doubled sales immediately and quadrupled sales in less than one year," said Dan Johnson, who co-owns Closets by Design of Denver with his brother, Corbin. "Closets by Design's home office assisted in a seamless transition to the franchise model, and helped us retain and attract new business in the process."
Closets by Design recently reported that its 2007 first quarter sales figures were up 17 percent over last year, and said franchise owners are continuing to report record-breaking second quarter sales.
"Conversion to the Closets by Design franchise model offers purchasing power by being associated with a large system, significant marketing advantages and a proven formula for growth," Egner said. "Independent business owners with experience in the organization industry make ideal franchisees, as long as they are eager to follow our tested and proven operating system."
About Closets by Design
Since 1982, Closets by Design has built a reputation as the nation's leader in the closet organizing and storage remodeling industry. The concept began offering franchise opportunities in 1998, was purchased by Home Organizers in 2001 and quickly grew to 27 locations by the end of 2002. With revenues reaching $90 million in 2006, Closets by Design was ranked in Entrepreneur magazine's 2007 listing of the nation's top 500 franchises as a leader in the home organization category.
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