As a franchise network that has the tagline ‘Gently Used Brand Name Clothing For Less,’ Plato’s Closet opens opportunities for you to own this business. For those of you who want to start the first business can try this franchise.
Why should you take this opportunity? There are at least three reasons why you should have Plato’s Closet.
1. The Largest
Plato’s Closet shows its supremacy as a leading national retail store in its field. With over 450 locations in North America and new stores opened every month, Plato’s network continues to grow. With a rapidly growing brand, there is certainly a huge market throughout the US and Canada that can be leveraged to set up their own Plato’s Closet.
2. The Best
Can you believe that shops selling clothing and accessories for adolescent and adult can produce an average gross sales of just under $ 1 million? That’s Plato’s Closet. Did you know our top quartile in the system (over 100 stores) has an average gross sales of over $ 1.4 million? Plato’s Closet is designed to be a high-volume, high gross margin business. The model is proven, it works, it’s scalable and this is the best in the business.
3. The Opportunity
Many of the franchisees gave testimonials that Plato’s Closet changed their lives. Plato’s business system allows young couples to enter into business ownership for the first time, retired executives ready to map their own path, or a family building business with lots of locations. This is a business that you can grow from one store to many stores depending on your goals.
To be able to open a Plato’s Closet store, of course, you must meet some required requirements. One of the mandatory requirements must be qualified financially. Financial qualifications for the Plato’s Closet franchise are:
- Investment fund of about $ 250,000
- Cash or liquid assets of at least $ 75,000
If you do not own this asset, it does not mean you can not own this franchise. Many of Plato’s franchisees take out loans to provide the capital needed for paying Plato’s Closet franchise fees to their stores or partners through family or friends to help them qualify.
After your finances are confirmed, then you will meet the current Plato’s Closet franchisees. You will visit their store, see how they operate and most importantly, talk to them about their business experience.
Here’s a fact about Plato’s Closet, so you’re more confident with this franchise.
Sales and gross margin:
- Top quartile average gross sales: $ 1,434,323 *
- Top quartile Gross Profit: $ 883,162 *
* As specified in Item 19 of the Plano 2017 Closet Disclosure Document (as reported by 434 of 435 Plato Cabinet stores that have been operating for at least one year as of December 31, 2016). Average Quartile Average Sales and Average Gross Profits only range from 108 from Plato’s Closet stores that are ranked the top 25% of the gross sales range. Of the 108 reporting stores in the top quartile, 42 or 39% of stores reached or exceeded the Average Gross Average Quartiles and Average Gross Profit. The results of new franchisees will likely differ from these results. (as quoted from Plato’s official website)
Real estate (Store):
- Power strip centers or suburban centers around regional shopping malls with a solid teen draw
- 3,500 – 4,000 square feet
- 98% gently used
- 2% new
- Females age 12 to 24
- Middle to upper middle income households
- Junior/senior high school and college students