5/10

Franchimp Summary Rating

2 /10
Higher than 80% of peers

Franchise Summary

Description
The franchisee will own and operate a Plato’s Closet retail store from which the franchisee will sell quality used and new brand name teen and young adult clothing and accessories.
Company Background
Plato's Closet is an exciting retail brand that provides affordable fashion for teens and young adults. The company is a leading seller of gently used clothing, shoes, accessories, and more. Plato's Closet offers its customers high-quality products at low prices by trading in the latest trends with designer labels. The franchisee will own and operate a store from which they will sell quality brands to their customers.
Franchise Opportunity
Teenagers are growing fast and they need new clothes all the time. But buying clothes for teenagers is expensive, especially if you don't want them to wear the same thing as everyone else at school. Plato's Closet buys back gently used teen clothing in good condition at a fair price and then resells it in our stores so teens can buy quality name brand clothing that fits their style without breaking their budget. We also buy new items from brands like Abercrombie & Fitch, American Eagle Outfitters, A?ropostale, Aeropostale, Alpha Industries America Eagle Outfitters , Banana Republic , Billabong , Calvin Klein Jeans Co., Inc., Columbia Sportswear Company (including but not limited to Columbia Footwear), Converse All Star Chuck Taylor Brand Shoes/Shoes for Crews /Sperry Top-Sider /Vans Brands/DVS Shoe Corp./H
Corporate Structure
Winmark Corporation was incorporated under the laws of the State of Minnesota on July 20, 1988 under the name “Play it Again Sports Franchise Corporation.” In July 1993, Winmark’s corporate name was changed from “Play it Again Sports Franchise Corporation” to “Grow Biz International, Inc.” In November 2001, their corporate name was changed from “Grow Biz International, Inc.” to “Winmark Corporation.” Winmark’s principal business address is 605 Highway 169 N , Suite 400, Minneapolis, Minnesota 55441. Winmark conducts business under the name Plato’s Closet®. Winmark also conducts business in 4 other separate lines of businesses under the names Play It Again Sports®, Music Go Round®, Once Upon A Child® and Style Encore®.
Royalties and Marketing Fees

Royalties : 5% of your ?Gross Sales

Royalties : $1,500 per year

Royalties : Minimum amount, when combined with cooperative advertising expenses, is 5% of your Gross Sales.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Clothing & Accessories Industry

$1,301,330 / unit

Franchise Type: Standard

Average Revenue During 2022

$1,301,330
$400,191
Industry Low
$1,301,330
Industry High

Average Gross Profit Per Unit

Compared vs. Clothing & Accessories Industry

$824,126 / unit

Franchise Type: Standard

Average Gross Profit During 2022

$824,126
$510,225
Industry Low
$824,126
Industry High

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Plato's Closet Franchisees

Plato's Closet Franchise System Development in 2022

FAQ

How much investment do I need to start my own Plato's Closet business?
Franchisees typically require at least $287 to $417 investment to get their Plato's Closet business started
What are the initial franchise fees for Plato's Closet?
Franchisees typically need to pay at least $47 in fees directly to Plato's Closet in order to earn the right to launch their business
How much money can I make with a Plato's Closet franchise? What are the average revenues for a typical Plato's Closet business?
We estimate that the average revenue of an individual Plato's Closet unit is approximately $1,301,330. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Plato's Closet unit? What is my contractual commitment?
Plato's Closet franchisees are typically required to sign up to a 10 year contract initially. The renewal length is 10 years. You can of course exit early but don’t expect to get any refund!

Accessibility

2 /10
The Franchisor's investment costs ranges from $287,300 to $417,300 which is Much Higher than the $0 to $0 average in the Clothing & Accessories industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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