About Clothes Mentor Franchise
Clothes Mentor is a retail franchise specializing in buying and selling gently used and new women's clothing and accessories.
The concept operates under the NTY Franchise Company umbrella and has been franchising since 2006.
The franchise fee is $25,000.
Clothes Mentor Franchise Cost & Fees
Minimum Investment
$250K
Average Investment
$307K
Maximum Investment
$364K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 4% of total Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently $2,000 per year (National Marketing and Promotional Fee), may increase to $3,000 per year. Minimum 5% of total Net Sales for local advertising. | National brand fund |
| Total Investment Range | $250,000 – $363,500 | Includes build-out, inventory, working capital |
The investment range of $250K–$364K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of total Net Sales) and marketing fee (Currently $2,000 per year (National Marketing and Promotional Fee), may increase to $3,000 per year. Minimum 5% of total Net Sales for local advertising.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Leasehold Improvements | $25,000 | $60,000 |
| Signs | $5,000 | $9,000 |
| Fixtures and Supplies | $30,000 | $40,000 |
| Proprietary Software and POS System | $17,000 | $17,000 |
| Inventory | $50,000 | $70,000 |
| Deposits, Business Licenses and Permits | $7,000 | $15,000 |
| Legal and Accounting | $0 | $4,000 |
| Security | $7,000 | $10,000 |
| Travel Expenses to Attend Training | $4,000 | $8,500 |
| Pre-Opening Labor Expenses | $10,000 | $15,000 |
| Grand Opening Advertising | $16,000 | $20,000 |
| Miscellaneous Pre-opening Expenses | $14,000 | $20,000 |
| Rent – 3 Months | $20,000 | $25,000 |
| Additional Funds - 3 Months | $20,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 1/3 of then-current Initial Franchise Fee |
| Renewal Fee | $10,000 |
| Technology Fee | Currently $1,000 per year |
| Audit Fee | Cost of audit plus 18% interest per year from due date (if audit shows understatement of 2% or more, or if required due to untimely info). |
| Taxes | Will vary under circumstances |
| Advertising Cooperative | Amount determined by local cooperative. |
| Transferee Training Fee | Currently $500 per transfer |
| Remodeling Expenses | Will vary under circumstances |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Interest Expenses | Lesser of 18% per year or the maximum rate permitted by law |
| Insurance | Cost of insurance |
| Additional Training Fee | Currently up to $200 per person per day |
| E-Commerce Program Fees | Currently, 2% of online Net Sales |
| Proprietary Software Fee | Currently, $3,000 |
| Software Support | Currently, $300 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8.5 days |
| Classroom Training | 50.0 hours |
| On-the-Job Training | 20.5 hours |
| Training Location | Plymouth, MN, or a location we designate |
| Additional Training | New Store managers must attend and successfully complete the initial training program, for which a fee of up to $200 per person per day may be charged. Franchisees (or Principal Owners) and any managers/assistant managers may also be required to attend supplemental and refresher training programs, for which a reasonable fee of up to $200 per person per day may be charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | No less than a two-mile radius and no greater than a six-mile radius from a particular intersection. Minimum population of 50,000 in metropolitan areas, or 25,000 in smaller markets. |
| Description | Franchisees receive an exclusive territory, called a "Protected Area," surrounding their approved store location. This area is determined by natural trade areas and population, ranging from a two-mile to a six-mile radius from a specific intersection. In metropolitan areas, the protected area will have a minimum population of 50,000, while smaller markets will have a minimum population of approximately 25,000. The franchisor will not establish any other franchised or company-owned Clothes Mentor® store within this Protected Area, provided the franchisee complies with the agreement. However, the franchisor reserves the right to sell products under the Licensed Marks through dissimilar channels (e.g., internet) and to sell other products under different trademarks within the Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | Franchisee must give 180 days' written notice, comply with all material provisions of the current agreement (including monetary obligations and operating standards), maintain possession of the store premises and make reasonable capital expenditures for remodeling/modernization to reflect current new store appearance (or secure a new approved location and construct improvements), meet managerial/financial/business standards for new/renewing franchisees, complete any new/refresher training programs, pay a $10,000 Renewal Fee, and sign a general release of claims. |
| Transfer Fee | 1/3 of then-current Initial Franchise Fee |
| Transfer Conditions | All accrued monetary obligations to franchisor/affiliates must be satisfied, and franchisee must be in good standing. The transferee must be approved by the franchisor, meet managerial/financial/business standards, possess a good business reputation and credit rating, and have the aptitude to conduct the business. The transferee must sign a written agreement assuming obligations or, at franchisor's option, sign the then-current standard franchise agreement. The transferee must successfully complete initial training. If applicable, the lessor must consent to the assignment/sublease. The transferor (franchisee) and Principal Owners must sign a general release of claims. The franchisor must approve the material provisions of the assignment/sale, which cannot permit the transferor to retain a security interest. The transferor and Principal Owners must sign an agreement to observe post-termination non-compete and other obligations. |
| Termination for Cause | Franchisor may terminate if franchisee fails to complete training or open store, violates any material provision, makes material misrepresentation in application, is convicted of a felony or crime harming reputation, fails to comply with System requirements or quality standards, fails to timely pay fees/obligations to franchisor/affiliates/approved suppliers/advertising cooperative, is insolvent, makes assignment for benefit of creditors, abandons the store, engages in conduct prejudicial to goodwill, makes unauthorized assignment/transfer, uses unapproved website or unauthorized internet activity, or if the store lease expires/terminates (unless due to lessor's refusal to renew and relocation within 60 days). Immediate termination without cure opportunity for repeated defaults (3 times in 12 months), non-curable breaches, willful deception of customers, certain defaults from Section 16(A) (e.g., felony, insolvency, abandonment, goodwill injury, unauthorized transfer/website), or willful falsification of reports (understating Net Sales by >4%). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisee (and Principal Owners) cannot directly or indirectly own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any business (including e-commerce) that buys and sells used or new women’s clothing and accessories or any other related competitive business, except for ownership of 1% or less of publicly traded securities. After termination or expiration, for two years, they cannot engage in such a business at the former store site or within a ten-mile radius of the former site or any other existing Clothes Mentor® store. This also applies to e-commerce businesses soliciting customers within a ten-mile radius. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Store must at all times be under the direct supervision of the franchisee (or a Principal Owner or an approved operating manager). If an operating manager supervises, the franchisee (or Principal Owner) must remain active in Store operations. The person responsible for day-to-day supervision must be full-time and not engage in any other business or activity requiring significant management responsibility or time commitments that conflict with their obligations. |
| Required Suppliers | Franchisees must purchase the POS System and a license for the Proprietary Software directly from the designated vendor, ReSale1. They must also participate in the e-commerce program, paying a one-time set-up fee ($450) and monthly hosting fee ($149) to Resale 1, Inc., and a monthly e-commerce processing fee ($29) to Shopify. |
| Supply Restrictions | Only approved categories of merchandise listed in the Operations Manual may be sold. Most inventory is purchased from customers, but the franchisor or other suppliers may be designated for certain items. While the franchisor is not currently the sole source for clothing or accessories, they reserve that right. Construction materials, fixtures, equipment, furniture, and signs must meet franchisor specifications, and can be purchased from any approved supplier. Used women's clothing and accessories can be bought from the general public if they comply with system standards. |
| Franchisor Revenue from Suppliers | For the fiscal year ended December 31, 2021, Clothes Mentor, LLC did not receive revenue from franchisee purchases. Its affiliate, BST Software Company, received $7,900, but no longer provides services. The franchisor reserves the right to derive 1% to 5% or more of the total purchase price from rebates or other payments from suppliers based on sales to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation, nor do we receive payment or other consideration for the placing of financing. |
Clothes Mentor Franchise Earnings — Item 19
Average Revenue
$647K
Median Revenue
$615K
Revenue Range
$121K – $2.1M
Sample Size
123 units
Past financial performance does not guarantee future results. Individual results will vary.
Clothes Mentor Litigation & Risk Flags
Clean Litigation RecordClothes Mentor has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
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 Mentor System Growth
Total Units
124
Franchised
124
Company-Owned
0
Clothes Mentor currently operates 124 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 5 | 2 | 138 |
| 2020 | 2 | 10 | 130 |
| 2021 | 1 | 7 | 124 |
Transfers: 16 | Closures: 19
State Registrations
Registered in 2 states: CA, MI
Franchisor Financials (Item 21)
Revenue
$3.6M
Net Income
$2.0M
Total Assets
$1.6M
Audited by Malloy, Montague, Karnowski, Radosevich & Co., P.A. for year ending December 31.
Clothes Mentor Franchise — FAQ
The total investment to open a Clothes Mentor franchise ranges from $250,000 to $363,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Clothes Mentor charges a royalty fee of 4% of total Net Sales of gross sales, plus a Currently $2,000 per year (National Marketing and Promotional Fee), may increase to $3,000 per year. Minimum 5% of total Net Sales for local advertising. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Clothes Mentor 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 Mentor to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Clothes Mentor franchise owners report average revenue of $647K and median revenue of $615K. This is based on a sample of 123 units. Past performance does not guarantee future results.
Clothes Mentor has been franchising since 2006. The FDD shows an investment range of $250,000-$363,500, a 4% of total Net Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $250,000 to $363,500 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 Mentor 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 Mentor or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com