The business sector grows and changes just like any other thing in the world.
Sometimes, young people can feel uncomfortable dealing with older business models and struggle to find the motivation to start a new business and keep fighting to build a successful career.
When starting a new business, it’s important that you dedicate yourself to something you like, you feel comfortable with, and if you belong to the same generation and segment of your clients, the better.
The franchise we’re discussing in this article is aimed at young adults from any point of view. It sells items to young adults and it is also aimed at young adult franchisees.
As a franchise, as a young business, as a business with a very specific target audience, Uptown Cheapskate franchise can be a great opportunity for any young adult trying to build a successful business.
And yet, launching a new business, especially a franchise business, can be a great investment, so it is important that you know as much as you can about it before starting.
This article is the perfect resource for you because we’re just about to discuss anything you need to know about the Uptown Cheapskate Franchise.
About The Uptown Cheapskate Franchise
Uptown Cheapskate is a resale store that buys and sells name-brand shoes, accessories, and clothing.
The franchise is very fast growing and the reasons behind this success are many. Basically, this type of business is an answer to many market demands:
- Young adult clients are demanding cheaper clothes and accessories and Uptown Cheapskate is providing them with them;
- The young adult generation is more sensitive to the environment cause, and a business that buys and re-sells clothes are sustainable;
- Uptown Cheapskate is also the answer for anyone who wants to avoid waste: clients have one place to go when they need to get free of old clothes or accessories they no longer use.
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History Of Uptown Cheapskate Franchise
Uptown Cheapskate is a relatively new franchise: it was founded in 2009 and it started as a franchise chain from day one.
Since 2009, the business has grown exponentially. Today it counts 637 employees all across the United States and has a $74.6M annual revenue.
The idea for the business came to Chelsea Sloan Carroll, co-founder of the company when she was very young and serving in the church.
She shared her idea with her brother, Scott, and together they opened the very first Uptown Cheapstake re-sale store.
As mentioned, their idea was not to open a single store but a chain of stores.
The first franchise store (which was the second of the chain) was opened only a few months after the opening of the first and main center.
Today, Uptown Cheapskate has spread into 80 locations and 23 states, and it is continuing to grow.
Uptown Cheapskate Business Model
Uptown Cheapskate is a re-sale stores chain. In the company’s store, that is, clothes, shoes, and accessories can be sold and bought by the clients.
Uptown Cheapskate is a franchise chain, meaning that anyone interested can apply and open their own Uptown Cheapskate store.
|Company name||Uptown Cheapskate|
|Business Model||Resale franchise stores|
|Number of outlets||80|
How Much Does It Cost To Open An Uptown Cheapskate Resale Store?
When opening a new Uptown Cheapskate store, your total initial investment would comprise all the money your need to set up a new store, and the initial franchise fee.
In this case, the franchise fee is $25,000. The total investment dedicated to the location and furnishing would be around $200,000.
In the case of a resale store, like this one, you can save some money on inventory.
However, when launching a business like this, you don’t have many vintage clothes and accessories to buy from your clients, so you’ll need a little investment for the initial inventory. You also need to dedicate a budget for buying items from your clients.
Taking every expense into consideration, including the franchise fee, you can calculate a total initial investment of about $300,000.
The franchise fee isn’t the only fee that this franchise requires. There is also a 5% royalty fee.
This isn’t included in the initial investment because you don’t need to pay it when you launch your business.
The royalty fee is calculated on your profit. The advantage of having a royalty fee calculated as a percentage (which is not a fixed amount, that is to say) is that if you have a small profit you have to pay a small royalty fee.
You are never in the place of not being capable of paying the royalty fee. This can be important and highly advantageous, especially at the beginning of your activity.
Uptown Cheapskate: Requirements
Sometimes, franchises require a specific net worth from their franchisees. It’s a form of guarantee that ensures them that you are capable of paying your fees and setting up your new business in the proper way.
Uptown Cheapskate has such a requirement. In particular, they require a net worth of $200,000 or higher.
Uptown Cheapskate: Training & Support
Uptown Cheapskate provides a lot of support to their franchisees. In particular, these are the available training:
- Initial training: a 12-day training session in Salt Lake City, at the headquarters of the company;
- 5-day Internship: after the first 12 days, you’ll spend five days covering any role in one of the finest Uptown Cheapskate locations.
- Financial coaching: the company also provides financial coaching to its franchisees.
- Online training: for those who can’t attend the initial and 5-day training, there is a 40-hour online course available that covers all the topics of the training.
- Ongoing training: the company provides support during the entire collaboration with their franchisees.
- Marketing training: as you may know, marketing is one of the most important aspects of business, and Uptown Cheapskate provides a course specifically aimed at marketing.
Uptown Cheapskate: Terms Of Agreement And Renewal
The franchise contract with Uptown Cheapskate doesn’t have a deadline. You remain an Uptown Cheapskate franchisee until you pay the royalty fee.
Uptown Cheapskate: Obligations And Restrictions
When running your Uptown Cheapskate store, although you are 100% the owner of your business, you need to stick to the main company’s obligations. They may require a precise type of furniture, packaging, and ethic.
These things are all made clear before you sign your franchise contract, and you’ll become very familiar with them during the training.
Other than that, you have full freedom when it comes to management and marketing.
Uptown Cheapskate: Financial Assistance
Uptown Cheapskate provides financial coaching but the company doesn’t provide any direct financial support.
If you need funding, you need to rely on third-parties financial institutions, but make sure you make the company aware of your funding plans.
Uptown Cheapskate Comparison
|Company||Uptown Cheapskate||Boomerang Kids|
Investing in a new Uptown Cheapskate resale store is a big investment but it is totally worth it.
If you are a young adult, this business is aimed specifically at you. It’s the beginning of a new profitable and sustainable adventure.
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Uptown Cheapskate: FAQs
Is Uptown Cheapskate a franchise or chain?
Uptown Cheapskate is a franchise. It is constantly open to new franchise applications.
If you want to get into business with the company, make sure you can fulfill the requirement and submit your request.
You can become the owner of an Uptown Cheapskate resale store.
Who is the owner of Uptown Cheapskate?
Chelsea and Scott Sloan Carroll, the founders of the company, are still its owners.
How many Uptown Cheapskate locations are there?
There are currently 80 Uptown Cheapskate locations spread through 23 states of the United States.
Is Uptown Cheapskate a good investment?
Uptown Cheapskate is a good investment because the company is growing fast.
It can answer many demands of the current market, and it is expected to grow even further in 2023.
Is Uptown Cheapskate worth it?
As we’ve seen, the Uptown Cheapskate franchise is a big investment.
Not only do you need to pay an initial fee, but you also have a 5% royalty fee that lasts forever.
But the Uptown Cheapskate franchise is still worth it because the return on investment is estimated to be even bigger than the expenses.
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.