Mainstream Boutique Franchise Cost, Profit & Failure Rate 2024

Mainstream Boutique is a premier retail store for women’s clothing, and If you want to diversify your portfolio with a remunerative franchise, then Mainstream Boutique must be a great opportunity for you.

It is one of the best clothing franchises to own.

To know more about Mainstream Boutique, go through our in-depth article and see Mainstream Boutique franchise profitability, fee, cost, eligibility, and so on. So, keep reading to learn more. 

Mainstream Boutique Franchise


About Mainstream Boutique

Mainstream Boutique is a women’s clothing retailer that offers a variety of fashionable and unique clothing and accessories. Founded in 1991 by Marie DeNicola, the company began as a direct sales business and later transitioned into a successful franchise model.

The boutique prides itself on providing personalized service and aims to create a connection with its customers through curated fashion collections that suit different tastes and styles. Each Mainstream Boutique location is designed to feel welcoming and offer a distinctive shopping experience.

By combining a focus on relationships with an ever-changing collection of clothing, Mainstream Boutique has carved out a niche in the fashion industry. The franchise model allows passionate entrepreneurs to become part of the Mainstream Boutique family, running their own stores with the support and guidance of an established brand.


Mainstream Boutique Franchise Model

Cost Or FeeAmount
Initial Investment$161K – $306K.
Franchise-Fee$18,000-$40,000
Liquidity$30,000 to $50,000
Area RequirementN/A
Total Outlets80

Mainstream Boutique Franchise Revenue & Profit

A Mainstream Boutique franchise owner typically makes $387,000 in sales each year. This figure comes from the sales data of 70 Mainstream franchises in the year 2021. However, the earning is highly influenced by the factors like location and how you conduct the business.

If we assume a profit margin of 15%, then we can calculate that a Mainstream Boutique franchise owner makes $58,050 in net profit annually on average. 

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%387000.00
Rent10.63%(41118.75)
Insurance5.31%(20559.38)
Salaries21.25%(82237.50)
Franchise Royalty Fees5.31%(20559.38)
Utilities2.13%(8223.75)
Cost of Goods Sold (COGS)26.56%(102796.88)
Labor (Variable)13.81%(53454.38)
Total (Expenses)85.00%(328950.00)
Net Profit15.00%58050.00

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.


How Much Does A Mainstream Boutique Franchise Owner Earn?

As calculated above, on average, a Mainstream Boutique franchise owner typically makes $387,000 in sales and $58,050 in net profits.

However, this figure is just an average. A Mainstream Boutique franchise owner can easily make more or less than this.


Failure Rate Of Mainstream Boutique

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20207374+1
20217475+1
20227573-2

For the Franchised outlets:

  • In 2020, the growth rate was (1)73×100≈1.36%
  • In 2021, the growth rate was (1)/74×100≈1.35%
  • In 2022, the failure rate was (2)/75×100≈2.67%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2020440
2021440
202243-1

For the Franchised outlets:

  • In 2020, the failure rate was (0)4×100≈0.00%
  • In 2021, the failure rate was (0)/4×100≈0.00%
  • In 2022, the failure rate was (1)/4×100≈25.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20207778+1
20217879+1
20227976-3

For Total outlets:

  • In 2020, the growth rate was (1)/77×100≈1.29%
  • In 2021, the growth rate was (1)/78×100≈1.28%
  • In 2022, the failure rate was (3)/79×100≈3.80%

According to the above-mentioned data, we can see that the franchised outlets for Mainstream Boutique grew from 2020 to 2021, showing a growth rate between 1.36% and 1.35%. However, in the year 2022, the company experienced a decline, showing a failure rate of 2.67%.

On the other hand, for company-owned outlets, the failure rate of Mainstream Boutique was quite high, lying in the range between 0.00% and 25.00% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Mainstream Boutique franchise has expanded in the years 2020-2021, showing a total growth rate between 1.29% and 1.28%. But, in the year 2022, the company had only 76 outlets as compared to the 79 outlets at the start of the year, showing a failure rate of 3.80%.


Payback Period Of Mainstream Boutique Franchise

With an investment of $306,000 and an estimated 15% profit on the average net sales, the yearly profit would be $58,050.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $306,000/ $58,050= 5.27 years

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


Training & Support Of Mainstream Boutique

Mainstream Boutique offers a training program to all new franchise owners. This program has two main parts: classroom training and on-the-job training.

In the classroom, they teach about daily operations, procedures, merchandising, customer service, basic computer skills, selling and marketing methods, financial reports, inventory buying and managing, and more.

After finishing the classroom lessons, they give on-the-job training. Here, they explain how to run and take care of the store.

They also have an extra training course that you can find on the franchisor’s online learning platform.


Term Of Agreement & Renewal

Mainstream franchise Term Of Agreement & Renewal

The starting length of the Mainstream Boutique franchise agreement is 10 years.

Once the first 10 years are finished, the franchisors may offer one more 10-year term to renew the agreement, but only if all the conditions are met at the time of renewal.

If the requirements are not met, then the agreement might be ended.


Mainstream Boutique Financial Assistances

Mainstream Boutique and its partners do not offer direct or indirect financing options to franchisees for setting up the franchise.

They don’t take responsibility for any promise to pay, rent agreement, or other duties that a franchisee might have.

But they have made good connections with outside lenders and banks. Through these, they might be able to help find a way to finance the franchise.

For this outside financing, you will need to have good credit. If you don’t meet some conditions, your request for financing might be turned down.

Potential franchisees interested in clothing can investigate opportunities with Plato’s ClosetApricot Lane Boutique, and Zara.

 


Mainstream Boutique Comparison

CompanyMainstream BoutiquePlato’s Closet
Founded In19911998
Initial Investment$161K – $306K.$150,000 and $500,000
Franchise-Fee$18,000-$40,000$25,000
Liquidity$30,000 to $50,000$142,210
Total Outlet80475 
Annual Revenue$2.5 Million$75 Million

Frequently Asked Question

How many Mainstream Boutique franchises are there?

Mainstream Boutique has more than 80 units across the U.S.

Where is Mainstream Boutique headquartered?

The headquarters of Mainstream Boutique is located in Minneapolis, Minnesota.

Is Mainstream Boutique a franchise?

Yes, Mainstream Boutique is a franchise that offers opportunities to entrepreneurs to start their own businesses.

How much does the Mainstream Boutique franchise cost?

Starting the Mainstream Boutique franchise requires an initial investment of $161K – $306K, with a franchise fee of $18,000-$40,000.

Who founded Mainstream Boutique?

Mainstream Boutique was founded by Marie DeNicola. The company is named after Marie’s only daughter Mikayla or ‘Mac’.

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