Tailored Living Franchise Cost, Fees & Failure Rate 2024

The secret to a successful business that comes before marketing and quality is that you aim at a precise sector of the market, one where there is high demand. 

Furthermore, the sector must be very specific; that’s why we speak about “niche.”

If you find a specific niche in the market that is not saturated by the competition, you’ve found the perfect space for your business to grow and become successful.

Tailored Living is a business that is founded on this principle: it is aimed at a very specific niche where the demand is high, but the competition is low. It is one of the 50 best franchises that you must own.

With their franchise program, you can take advantage of this business model and become the owner of a new Tailored Living business.

In this article, we’re providing you with any information you need about the Tailored Living Franchise.

Tailored Living Franchise
Tailored Living Franchise

About the Tailored Living Franchise

Tailored Living provides home storage solutions for garages, closets, mudrooms, entryways, home offices, multi-function spaces, and more.

After the pandemic, people have started doing a lot more things remotely, meaning from home: they work from home, they work out at home, they meet friends at home, and a lot more.

It means that their home spaces have been revolutionized, and they had to be optimized to welcome a lot more furniture, objects, and functions.

Those who seek professional help in organizing their spaces can find it from Tailored Living.


History Of The Tailored Living Franchise

Tailored Living was founded in 2006 in California. Originally, it was named Closet Tailors, but the type of services it provided was the same: it helped people organize their residential, professional, or commercial spaces.

After the pandemic, the number of services requested has increased exponentially, and this business has become extremely profitable.

Tailored Living is also a franchise. Over the years, they were able to open 164 franchises in the United States and 29 more franchises abroad. 

Because of how the world has changed recently, Tailored Living has become a great opportunity for franchisees all over the world.


Tailored Living Franchise: Business Model

Tailored Living is a provider of space optimization and organization service. The company is a franchise, and it’s currently open to franchise applications.

Company nameTailored Living
Business ModelSpace organization service
Initial Investment$156,000 and $297,000
FranchiseYES
Franchise Fee$14,950
Royalty fee$300 to $2000 per month 
Ad fee$500 to $1,250 per month
Number of units164 in the US + 29 abroad

How Much Does It Cost To Open A New Tailored Living Franchise Business?

When you launch a new Tailored Living business, you need to invest less in location and furnishing and more in resources, like qualified employees, software, and more.

Unluckily, this doesn’t mean that the initial investment is lower than other successful franchises because it is estimated to be between $156,000 and $297,000. The initial investment also includes an initial franchise fee of $14,950.

The initial franchise fee is the one you have to pay at the beginning of your journey, but it’s not the only one due to the franchisor.

Tailored Living also requires a royalty fee of $300 to $2000 per month and an advertising fee of $500 to $1,250 per month.


Tailored Living Franchise: Requirements

Tailored Living Franchise

If you’d like to apply for the Tailored Living franchise program, make sure that you have a net worth of $150,000 and liquid cash availability of $130,000. 

Furthermore, the Tailored Living franchise program prefers candidates who have prior business ownership experience and a strong passion for home organization and design. These are the requirements to join the franchise program.


Tailored Living Franchise Revenue & Profit

As per sources, Tailored Living franchisee owner makes $200,000 to $400,000 in revenue on average.

So if we assume a profit margin of 15% as per the industry standards, then we can find out that a Tailored Living franchise owner makes between $30,000$60,000 on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%400000.00
Rent10.63%(42500.00)
Insurance5.31%(21250.00)
Salaries21.25%(85000.00)
Franchise Royalty Fees5.31%(21250.00)
Utilities2.13%(8500.00)
Cost of Goods Sold (COGS)26.56%(106250.00)
Labor (Variable)13.81%(55250.00)
Total (Expenses)85.00%(340000.00)
Net Profit15.00%60000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Tailored Living

The investment of $297,000, and the yearly profit is $60,000. So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $297,000/ $60,000= 4.95 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Tailored Living. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Tailored Living

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018164160-4
2019160156-4
2020156155-1

For the Franchised outlets:

  • In 2018, the failure rate was (4)/164×100≈2.43%
  • In 2019, the failure rate was (4)/160×100≈2.5%
  • In 2020, the failure rate was (1)/156×100≈0.64%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Tailored Living declined from 2018 to 2020, showing a failure rate between 2.43% and 0.64%. 


Tailored Living Franchise: Terms of Agreement and Renewal 

The length of the franchise contract with Tailored Living is 10 years. After that, you can renew the contract for another 10 years if you meet the renewal requirements.

You may also be required to pay a renewal fee. To know how much the renewal fee is, make sure to read your contract because it may vary according to your specific case.


Tailored Living Franchise: Training and Support

The Tailored Living Franchise provides a lot of support to its franchisees.

When you sign the franchise program, you get access to 80 hours of classroom training and additional regional training.

Furthermore, constant support is provided during the whole length of the franchise relationship with the company.


Tailored Living Franchise: Obligations and Restrictions

Obligations and Restrictions that Tailored Living sets for their franchisees are not public, but you can expect some (it happens for most franchises).

Make sure to read the franchise contract carefully to know what they are.


Tailored Living Franchise: Financial Assistance

Tailored Living provides in-house financial assistance to help you cover the costs of the franchise fee. The other type of expense is up to you.


Tailored Living VS Closet Factory

CompanyTailored LivingCloset Factory
Business sectorSpace organization servicesSpace organization services
Founded in 20061983
Franchise fee$14,950$58,500
Royalty fee$300 to $2000 per month 6.75%
Initial Investment$156,000 and $297,000$273,500 to $466,000

Conclusion

The demand for the services that Tailored Living provides has increased exponentially in the last couple of years.

This is a great opportunity that entrepreneurs should exploit with no hesitation.

Tailored Living also brings with it the advantage of being a franchise: it’s true there are fees you have to pay, but you are constantly assisted by a company with experience that can guide you through your journey to success.


FAQs

Is Tailored Living a franchise or a chain?

Tailored Living is a franchise. It’s possible for those who meet the requirement to launch and become the owner of a new Tailored Living business in the United States and even abroad.

Who is the current owner of the Tailored Living Franchise?

Scott Barrett is the current CEO of the Tailored Living company.

How many Tailored Living locations are there?

At the moment, there are 164 Tailored Living locations operating in the United States and 29 outside the country.

Is the Tailored Living franchise a good investment?

The Tailored Living franchise is an excellent investment, especially now. Now it’s the moment when the demand for these services is highest.

This isn’t something that the company was expecting either, but as occasions present, you need to be able to take advantage of them.

This is the perfect time to invest in a franchise business like Tailored Living.

Is Tailored Living worth it?

The initial investment that the Tailored Living franchise requires is quite high, but it’s still worth it, especially in times like these, for the reasons we’ve discussed above: the demand for home and commercial space organization service is higher than ever.

Where is Tailored Living headquartered?

The headquarters of Tailored Living is located in Orange, California, United States.

Who founded Tailored Living?

Tailored Living has rebranded October 2022 as the Tailored Closet. It was founded in 2006.

Sources

Reference: Tailored Living Franchise for Sale – Cost & Fees | All Details & Requirements (topfranchise.com)Tailored Living Cost to Acquire, Royalties, Profit, and More (franchisegrade.com)

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