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Vertical
Integration - Operating a vertically integrated business,
our franchisees design, sell manufacture and install custom
closet systems, garage organizers, entertainment centers and
custom office systems with no middleman in the chain of distribution.
This is the most efficient form of distribution.
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Highly
Fragmented Industry - There are only two worldwide franchisors
in the closet industry. The rest of the market is made up
of smaller regional firms and "Mom and Pops". This
allows us market dominance.
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Low
Tech Business - Homes are still being built the same way
they have been for the last 60 to 70 years with a rod and
a shelf. The demand is still being built every day for us.
You won't wake up and find yourself obsolete!
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Cash
Business - There are no receivables because franchisees
get a 50% deposit with the order and the balance upon completion.
Being in the "cash" position before even being invoiced
by vendors is almost unheard of in the business today.
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Unskilled
Labor - Not being "held hostage" by any particular
technically skilled work force, franchisees manufacture the
best quality products at the most advantageous cost factor.
"The intelligence is in the machine" and our workers
merely feed the machines.
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Not
Location Dependent - Factories are located in light industrial
or warehouse manufacturing sites. The sale takes place in
the customer's home not in an expensive retail location. Franchisees
enjoy better rent factors and have less risk by not having
to lease high traffic retail locations.
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Training
- New franchisees participate in two weeks of intense
and thorough training at our headquarters in Los Angeles.
When their factory opens we send a sales manager to their
location for two weeks to train their "design consultants"
how to design and sell. We also send an operations manager
to their factory for two weeks to train the staff how to manufacture
and install. Franchisees are trained twice, once in our facilities
and then again in their own factory.
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Support
- Closet Factory franchisees enjoy support that is second
to none! Because of our own presence in the marketplace, owning
and operating a total of seven factories, we have staff numbering
well into the 200's that we can draw upon to help our franchisees.
No other closet company can make that statement!
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Big
Business - Franchisees enjoy a business that was designed
to be large enough so it isn't necessary to have multiple
locations to replace an executives income.
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Growing
Marketplace - the remodeling industry has been growing
at 20% a year, according to the Department of Commerce. This
combined with the increase in building starts, sets the stage
for long-term growth and demand for the products that we manufacture.
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Build
Equity - Manufacturing businesses are accorded valuations
different than businesses dealing with either consulting or
the service sector. Closet Factory franchisees do more than
merely "buy themselves a job" - they build their
own future.
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Lifestyle
- Closet Factory franchisees operate their businesses
during normal working hours, usually Monday - Friday 8am to
5pm and sometimes 1/2 day on Saturday. No need to work nights,
holidays and weekends like many retail and food establishments.
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Freedom
- Closet Factory franchisees have the choice of operating
their business themselves "hands-on" or absentee,
with a hired manager.
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Experience
- Closet Factory franchisees start on day one with the
accumulated knowledge gathered over the last 16 years of being
in the business. A proven strategy and formula sure beats
guesswork and trial and error!.
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Turnkey
- Everything's spelled out for our franchisees in opening
their factory. Just like a good recipe, our instructions are
easy to follow and eliminate mistakes and surprise
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