About Clothes Bin Franchise
Clothes Bin is a textile recycling franchise operating under parent company Recycling Brands, LLC, with opportunities available since 2015.
Each business places branded collection bins in strategic locations throughout a territory, collecting used clothing, shoes, and textiles for recycling and resale.
The model generates revenue from the sale of collected materials to textile recyclers and resale markets.
Clothes Bin Franchise Cost & Fees
Minimum Investment
$124K
Average Investment
$155K
Maximum Investment
$186K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | A weekly fee equal to: (i) commencing on the earlier of (a) the week after Franchisee’s receipt of its initial shipment of 20 Bins or (b) 120 days from the date of the Franchise Agreement, $120 per week; (ii) if Franchisee purchases additional Bins at the same time Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) of the week after Franchisee’s receipt of its second shipment of Bins or (b) 180 days from the date of the Franchise Agreement, $180 per week if Franchisee purchased an additional 10 Bins, or $240 per week if Franchisee purchased an additional 20 Bins; and (iii) if Franchisee purchases additional Bins at any time after Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) the week after Franchisee’s receipt of any additional shipment of Bins, or (b) 90 days after Franchisee purchased such Bins, the greater of (y) $6 per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations within 90 days after Franchisee purchased such Bins, or (z) $120 per week. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | A weekly fee not greater than One Dollar and Fifty Cents ($1.50) per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations. (Presently not collected, but reserved for future). | National brand fund |
| Total Investment Range | $124,270 – $186,295 | Includes build-out, inventory, working capital |
The investment range of $124K–$186K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (A weekly fee equal to: (i) commencing on the earlier of (a) the week after Franchisee’s receipt of its initial shipment of 20 Bins or (b) 120 days from the date of the Franchise Agreement, $120 per week; (ii) if Franchisee purchases additional Bins at the same time Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) of the week after Franchisee’s receipt of its second shipment of Bins or (b) 180 days from the date of the Franchise Agreement, $180 per week if Franchisee purchased an additional 10 Bins, or $240 per week if Franchisee purchased an additional 20 Bins; and (iii) if Franchisee purchases additional Bins at any time after Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) the week after Franchisee’s receipt of any additional shipment of Bins, or (b) 90 days after Franchisee purchased such Bins, the greater of (y) $6 per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations within 90 days after Franchisee purchased such Bins, or (z) $120 per week.) and marketing fee (A weekly fee not greater than One Dollar and Fifty Cents ($1.50) per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations. (Presently not collected, but reserved for future).) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $44,500 | $49,500 |
| Real Property | $1,000 | $4,000 |
| Computer and Software | $300 | $800 |
| GPS Bin Technology | $500 | $800 |
| Initial Purchase of Bins | $49,900 | $57,900 |
| Freight Fees | $4,925 | $8,000 |
| Trailer and Parking Space Rental | $800 | $1,800 |
| Mandatory Bin Placement (for first 20 Bins) | $5,995 | $5,995 |
| Bin Location Services | $0 | $9,900 |
| Truck Rental for Placement and Collections | $1,600 | $2,400 |
| Pallet Jack, Locks & Supplies | $800 | $1,200 |
| Business Licenses, Permits or Registrations | $400 | $1,100 |
| Insurance | $300 | $600 |
| Initial Training | $0 | $500 |
| Legal and Accounting | $750 | $3,000 |
| Additional Bin Signage | $0 | $1,000 |
| Business Cards, Uniforms, and other items | $500 | $800 |
| Additional Funds for First 3 Months of Operations | $12,000 | $37,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | 20% of the then-current Initial Franchise Fee being charged to new franchisees. |
| Technology Fee | A weekly fee equal to: (i) commencing on the earlier of (a) the week after Franchisee’s receipt of its initial shipment of 20 Bins, or (b) 120 days from the date of the Franchise Agreement, $80 per week; (ii) if Franchisee purchases additional Bins at the same time Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) the week after Franchisee’s receipt of its second shipment of Bins, or (b) 180 days from the date of the Franchise Agreement, $120 per week if Franchisee purchased an additional 10 Bins, or $160 per week if Franchisee purchased an additional 20 Bins; and (iii) if Franchisee purchases additional Bins at any time after Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) the week after Franchisee’s receipt of any additional shipment of Bins or (b) 90 days after Franchisee purchased such Bins, the greater of (y) $4 per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations within 90 days after Franchisee purchased such Bins, or (z) $80 per week. May be adjusted, but not increased by more than 10% per annum. |
| Audit Fee | Actual amount of audit. Could range from $6,000 to $15,000, or higher. Paid only if an audit of your Franchised Business reveals that you understated Gross Revenues by 5% or more for any quarter, or by 10% or more for any calendar year, plus actual amount of fees due as a result of underreporting. |
| Re-Training Fee | Currently, $500 per person, per day, plus our travel, transportation, lodging, meals and other living expenses. We may increase this fee to up to $750 per person, per day. |
| Additional On-Site Assistance (if we agree to provide) and Fees for Franchisor’s Labor to Pick Up and Remove Bins | Currently, $500 per day, plus our travel, transportation, lodging, meals and other living expenses. We may increase this fee to up to $750 per day. |
| Additional Training and/or Refresher Courses | Currently, $500 per person, per day, plus trainees’ salaries, travel, transportation, meals and other living expenses. We may increase this fee to up to $750 per person, per day. |
| Interest on Late Payments | The highest interest rate permitted by law. |
| Charge for returned ACH payment or nonpayment due to “Insufficient Funds” or otherwise. | $50.00 |
| Damages, Costs and Attorneys’ Fees | Actual amount of damages, attorneys’ fees, costs and expenses incurred by us. |
| Indemnification Fees | Actual amount of damages we suffer, including attorney’s fees, costs and expenses. |
| Management Fee | Up to $1,000 per week, plus Franchisor’s expenses. |
| Bin Unload and Placement Service Fee (for second shipment, if any, and any optional service requested) | $5,995 per additional shipment of 20 Bins that you purchase or $4,995 per additional shipment of 10 Bins that you purchase. |
| E-Mail Address Fee | Currently, $1.38 per week, per each fillthebins.com email address assigned to you. |
| ACH Transaction Fees | Currently, 50 cents per transaction, which is approximately $26 per year. |
| Fee for Trailer Loads Under the Required Minimum Weight | Up to 20 cents per pound that your trailer weight load is below the then-current minimum established by us, which is currently 38,000 pounds. The amount we charge, up to 20 cents per pound, will depend on the circumstances and will be in our sole discretion. |
| Hourly Fee for Transfer/Load Time Over 4 hours | Depending on the buyer we sell to and the freight company used when selling through the National Buyer Program, after the first 2 or 4 hours, our then-current hourly fee. Currently, $50 - $75 per hour. We may change this fee, but will not exceed $100 per hour. |
| Bin Location Services Fee | $150 for each Bin that we find a location for, plus our travel, transportation, meal and lodging expenses. If you elect this service, you must pay us a non-refundable deposit of $2,000 prior to us committing to provide these services. |
| Reimbursement of Costs to Clean Up Bin Debris | $250 administrative fee, plus the actual cost charged by the service provider engaged by us to clean up Bin debris. |
| Administrative Fee and Reimbursement of Costs to Pick Up and Remove Bins | $250 per Bin administrative fee, plus our then-current fees for our labor and the actual costs incurred by us to remove such Bins and to keep such Bins in storage. |
| Reimbursement of Costs to Pick Up, Remove Bins, Store and Ship Bins upon Termination or Expiration of the Franchise Agreement | Franchisor’s costs to collect any of the Bins from the Bin Locations, store the Bins, truck rental and labor costs, and the freight costs to ship the Bins. |
| Freight Fees for shipment of Bins | Currently, $4,925 to $8,000 per each shipment of Bins. |
| BLIP Sensor Shipping Costs for Replacement Sensors, Cost of Replacement Batteries and Related Shipping Costs | Actual cost of shipping and our then-current price for replacement batteries. |
| Replacement Signage and/or Bins | Signage: Our then-current prices. Currently, approximately $250 per Bin. Bins: Our then-current prices. Currently, $49,900 - $57,900 for 20 Bins, or $24,950 - $28,950 for 10 Bins, but this is subject to change. |
| Accounting Fee | The vendor’s then-current fee, not to exceed $500 per month (for each Territory with 20 Bins). Currently, the fee is $200 per month (for each Territory with 20 Bins). |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 1 to 2 days (online/virtual) + 2 full days (in-person) |
| Classroom Training | 8 hours |
| On-the-Job Training | 16 hours |
| Training Location | Online, and/or virtually for classroom training; In Your Territory for on-the-job training. |
| Additional Training | Mandatory refresher or additional training programs may be required annually at corporate headquarters (Davie, Florida) or other designated locations, or via webinars/online courses. Fees up to $750 per person, per day, plus trainee expenses. Additional on-site assistance, if provided, costs up to $750 per day plus franchisor expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | A defined geographic area that contains approximately 350 gas station and convenience store sites (potential Bin locations) within its boundaries. |
| Description | The territory is a defined geographic area identified by map, zip codes, or written description, containing approximately 350 potential gas station and convenience store sites. Franchisees receive an exclusive territory, meaning neither the franchisor nor its affiliates will operate or grant others the right to operate a Clothes Bin business or similar business under the same marks within the territory, provided the franchisee is compliant. The franchisee can move bins within their territory but cannot change the territory itself. Territorial exclusivity is not dependent on sales volume or market penetration. The franchisor retains rights to operate outside the territory, including close proximity, and to sell products/services not part of the system or recycled textiles under any marks, anywhere, including within the franchisee's territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Two (2) additional consecutive terms of five (5) years each |
| Renewal Fee | 20% of the then-current Initial Franchise Fee being charged to new franchisees. |
| Renewal Conditions | Full compliance with the Franchise Agreement, bringing the business into full compliance with current specifications for new/renewing businesses, giving 9-12 months' notice, satisfying all monetary obligations, executing the then-current Franchise Agreement (which may have materially different terms), complying with current qualification/training requirements, and executing a general release of claims against the franchisor and its affiliates. |
| Transfer Fee | $15,000 |
| Transfer Conditions | Compliance with right of first refusal, proposed assignee application and qualification, personal interview, demonstration of skills/resources, completion of initial training by assignee/manager, assignor's full compliance with obligations, execution of new franchise agreement by assignee (with current terms, but no new initial fee), sales price not excessive, guarantee by new owners (if entity), general release by assignor, provision of executed assignment contract, assignee upgrades business to current standards, assignor remains liable for pre-transfer obligations, and assignor complies with post-termination non-compete. |
| Termination for Cause | Automatic termination without notice for bankruptcy/insolvency, assignment for creditor benefit, receivership, dissolution, or levy. Termination with notice (no cure) for cessation of operations/abandonment, material misrepresentation, mutual agreement, failure to timely purchase initial bins (30 days), felony/fraud/moral turpitude, unauthorized transfer, concealment of revenues/false records, consumer fraud, interference with franchisor relations/rights, failure to maintain insurance, three default notices in 365 days, offering unapproved products/services, repeated violation of sorting/altering collected clothes prohibition, or repeated failure to clean bin debris. Curable defaults (7-15 days to cure) include failure to pay bin location rent or failure of operational audit. |
| Non-Compete Period | 3 years |
| Non-Compete Details | Prohibits direct or indirect involvement in any business selling similar products/services, or purchasing/placing/using any collection bins for clothes, shoes, and textiles other than those under the agreement. This applies within the franchisee's former Territory, within 25 miles from its boundaries, and within the territory of any other Clothes Bin franchisee or affiliate as of the termination date. Also prohibits working with franchisor's buyers or National Buyer Program buyers for 3 years post-term. During the term, prohibits soliciting franchisor employees or diverting business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, an Operating Partner with at least a 5% equity interest is required to actively direct business affairs. This Operating Partner must be approved by the franchisor. If neither the franchisee nor the Operating Partner oversees day-to-day operations, a competent Manager must be employed. Either the franchisee (or Operating Partner) or the Manager must attend the Initial Training Program. The franchisor can require replacement of an Operating Partner or Manager if they fail to meet standards or negatively impact the brand. |
| Required Suppliers | Franchisee must purchase Bins, signage, business cards, uniforms, and other products and services from the franchisor, its affiliates, designated vendors, and/or approved third-party vendors. Franchisee must also use the proprietary Bin Location Information Program (BLIP) and a designated vendor for accounting/bookkeeping services for the first 12 months. Specific types of batteries for BLIP sensors are also required to be purchased through the franchisor if chosen. |
| Supply Restrictions | Franchisee is restricted to purchasing Bins and their components, business cards, nametags, uniforms, and additional signage for school programs from the franchisor or approved vendors. The BLIP monitoring program is mandatory. Other products, supplies, equipment, and services may be purchased by brand name or specification from vendors of the franchisee's choice, subject to franchisor approval. The franchisor may revoke approval of any item, service, or supplier at any time. |
| Franchisor Revenue from Suppliers | During fiscal year 2021, the franchisor received $183,150 in revenue from the sale of all required purchases of products and services to its franchisees, which was approximately 7% of its total revenue of $2,762,218. The franchisor may receive financial incentives, rebates, or other remuneration from manufacturers, suppliers, and third parties in the future based on franchisee purchases, and will retain these for its sole benefit. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your notes, leases or any of your obligations. |
Clothes Bin Franchise Earnings — Item 19
Average Revenue
$394K
Median Revenue
$284K
Revenue Range
$134K – $868K
Sample Size
6 units
Past financial performance does not guarantee future results. Individual results will vary.
Clothes Bin Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Clothes Bin System Growth
Total Units
37
Franchised
32
Company-Owned
5
Clothes Bin currently operates 32 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 13 | 3 | 34 |
| 2020 | 2 | 2 | 34 |
| 2021 | 1 | 3 | 32 |
Transfers: 1 | Closures: 3
State Registrations
Registered in 30 states: CA, CT, FL, GA, HI, IL, IN, IA, KY, LA, ME, MD, MI, MN, NE, NH, NY, NC, ND, OH, OK, OR, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2.8M
Clothes Bin Franchise — FAQ
The total investment to open a Clothes Bin franchise ranges from $124,270 to $186,295, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Clothes Bin charges a royalty fee of A weekly fee equal to: (i) commencing on the earlier of (a) the week after Franchisee’s receipt of its initial shipment of 20 Bins or (b) 120 days from the date of the Franchise Agreement, $120 per week; (ii) if Franchisee purchases additional Bins at the same time Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) of the week after Franchisee’s receipt of its second shipment of Bins or (b) 180 days from the date of the Franchise Agreement, $180 per week if Franchisee purchased an additional 10 Bins, or $240 per week if Franchisee purchased an additional 20 Bins; and (iii) if Franchisee purchases additional Bins at any time after Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) the week after Franchisee’s receipt of any additional shipment of Bins, or (b) 90 days after Franchisee purchased such Bins, the greater of (y) $6 per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations within 90 days after Franchisee purchased such Bins, or (z) $120 per week. of gross sales, plus a A weekly fee not greater than One Dollar and Fifty Cents ($1.50) per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations. (Presently not collected, but reserved for future). contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Clothes Bin Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Clothes Bin to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Clothes Bin franchise owners report average revenue of $394K and median revenue of $284K. This is based on a sample of 6 units. Past performance does not guarantee future results.
Clothes Bin has been franchising since 2015. The FDD shows an investment range of $124,270-$186,295, a A weekly fee equal to: (i) commencing on the earlier of (a) the week after Franchisee’s receipt of its initial shipment of 20 Bins or (b) 120 days from the date of the Franchise Agreement, $120 per week; (ii) if Franchisee purchases additional Bins at the same time Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) of the week after Franchisee’s receipt of its second shipment of Bins or (b) 180 days from the date of the Franchise Agreement, $180 per week if Franchisee purchased an additional 10 Bins, or $240 per week if Franchisee purchased an additional 20 Bins; and (iii) if Franchisee purchases additional Bins at any time after Franchisee purchases its initial package of 20 Bins, then commencing on the earlier of (a) the week after Franchisee’s receipt of any additional shipment of Bins, or (b) 90 days after Franchisee purchased such Bins, the greater of (y) $6 per Bin that Franchisee has purchased and received, whether or not any or all of the Bins are placed at Bin Locations within 90 days after Franchisee purchased such Bins, or (z) $120 per week. royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,500 and the total investment ranges from $124,270 to $186,295 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Clothes Bin and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Clothes Bin or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com