Within 18 months of opening, Clozetivity has established itself as a strong emerging franchise with 50 locations in the U.S. Even though the company has seen significant growth since launching, Co-founder and CEO Leo Goldberger remains focused on providing adequate support for franchisees. By Kelsi Trinidad
Within 18 months of opening, Clozetivity has established itself as a strong emerging franchise with 50 locations in the U.S. Even though the company has seen significant growth since launching, Co-founder and CEO Leo Goldberger remains focused on providing adequate support for franchisees as he scales the corporate support operations to accommodate the brand’s fast growth.
“It’s important to have the proper people, so while we want to grow, we want to do it in a very controlled fashion. We want to make sure the overwhelming majority are actually making a lot of money,” Goldberger said.
One of the keys to Clozetivity’s rapid growth is its franchise model, which ensures that new franchisees aren’t saddled with enormous royalties from the start. The company has designed its royalty structure to be a flat fee of $400 for the first six months and $800 for the next six months. The fee gradually scales up to the cap of $2,000 a month. This structure allows new franchise owners to get their footing when first establishing their business and customer base.
For potential franchisees, Clozetivity Co-founder Curt Swanson said the most important quality in candidates is a drive to succeed. “I always say the most success that I’ve had with any franchise and anything that I’ve ever sold are with people who are hungry,” he said.
Closets are one of the most accessible and necessary services within the home service industry. Goldberger explained that most home services, like solar panels, require extensive customer education on the product to make sales, but closets remain straightforward and often are a necessity for customers who have recently moved into a new home.
Aside from the benefits of the business, the potential to change people’s lives with a franchise opportunity remains the most gratifying part of Goldberger’s job. “I really like to see people start a new business and make it. We have a lot of people like this. It really makes my day,” he said.
Kelsi Trinidad