Are you willing to invest in the Plato’s Closet franchise but have qualms about it? Then you are at the right place.
In this article, we are going to discuss the significant facts related to the Plato’s Closet franchise, like its profitability, cost, fees, and everything that needs to be known before investing in this franchise. So, let’s begin.
About Plato’s Closet
Plato’s Closet is a leading second-hand brand-named clothes and accessories store in North America. They sell quality used and new brand-name teen and young adult clothes and accessories.
Plato’s Closet was founded in 1998, and after one year of establishment, it started offering franchises. Today, it has more than 475 units across North America and is growing rapidly.
The business model of Plato’s Closet franchise is very flexible. They never require any prior experience, and the franchisee doesn’t need to follow any long or rigorous process to buy the franchise.
However, franchisees have to arrange the cost of the investment on their own because Plato’s does not provide any direct or indirect finance option, but they allow you to take third-party finance.
Moreover, they also provide a comprehensive training program and different types of support to franchisees to enhance the growth of the franchise business.
Also, the franchisees receive an “exclusive territory” surrounding the location of the store.
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Plato’s Closet Franchise Model
| Initial Investment | $150,000 and $500,000 |
| Franchise-Fee | $25,000 |
| Liquidity | $142,210 |
| Area Requirement | N/A |
| Total Outlet | 475 |
Training & Support Of Plato’s Closet
Plato’s Closet provides a comprehensive training program to all new franchises. The training program is conducted in two phases at Winmark’s training center.
The first phase consists of training-induced instruction related to the management and operation of a privately-owned retail store, real estate matters, business development plans, how to buy used products, and orientation also.
In the second phase, they give you a guide on sales and marketing, store management, computer operation, personnel issues, and other topics that the franchisors want to explain to you related to the business.
Additionally, they also provide store opening assistance on the day before and the opening day of the store.
Term Of Agreement & Renewal
The length of the term of the franchise agreement of Plato’s Closet is 10 years. After the expiry of the term, the renewal of the agreement is available for another term of 10 years.
However, franchisees have to accomplish the requirements as directed by the franchisors. And also, the franchise should be in good standing and should be generating a decent amount of profit.
Plato’s Closet Financial Assistance
Plato’s Closet does not offer direct or indirect financing. And the franchisors are not responsible for any franchisees’ promissory note, lease, or other obligations.
However, Plato’s Closet provides the option of third-party finance or in-house financing.
Plato’s Closet Comparison
| Company | Plato’s Closet | Apricot Lane Boutique |
|---|---|---|
| Founded In | 1998 | 1996 |
| Initial Investment | $150,000 and $500,000 | $80,000 – $361,800 |
| Franchise-Fee | $25,000 | $39,500 |
| Liquidity | $142,210 | $80,000 |
| Total Outlet | 475 | 82 |
| Annual Revenue | $75 Million | $7 Million |
Frequently Asked Question
How many Plato’s Closet franchises are there?
Plato’s Closet has more than 475 units across the U.S.
How much does it cost to own a Plato’s Closet Franchise?
The initial investment required to open a Plato’s Closet Franchise is $150,000-$500,000
Does the Plato’s Closet franchise offer financial assistance?
Yes, the Plato’s Closet franchise offers third-party finance to franchisees.
Where is Plato’s Closet headquarters?
Minneapolis, MN
Is Plato's Closet a franchise or a chain?
Plato’s Closet is part of a unique national retail resale chain that buys and sells guys’ and girls’ clothing under the name of the Winmark brand.
How much does the Plato's Closet franchise cost?
To buy the Plato’s Closet franchise, you’ll require an investment of $150,000 and $500,000, and $25,000 as an initial franchise fee.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.