Plato’s Closet Franchise FDD, Profits & Costs (2025)
Plato’s Closet is a prominent retail franchise that specializes in the buying and selling of gently used name-brand clothes, shoes, and accessories for teens and young adults.
Founded in 1998, the franchise is part of Winmark Corporation and started franchising a year later, in 1999.
The company is headquartered in Minneapolis, Minnesota, and has expanded to include hundreds of franchise units across North America.
What sets Plato’s Closet apart from other thrift stores is its focus on trendy, high-quality products that appeal to fashion-conscious teens and young adults, offering them an affordable way to stay stylish.
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Initial Investment
How much does it cost to start a Plato’s Closet franchise? It costs on average between $327,000 – $449,000 to start a Plato’s Closet franchised facility.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, such as location, store size, and regional expenses.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 |
| Fixtures and Supplies | $50,000 to $65,000 |
| Signs | $11,000 to $16,000 |
| Security Cameras | $1,500 to $4,000 |
| Point-of-Sale (POS) System | $22,200 to $29,500 |
| Leasehold Improvements | $15,000 to $22,000 |
| Build-Out | $30,000 to $55,000 |
| Deposits and Business Licenses | $5,000 to $15,000 |
| Opening Inventory | $65,000 to $80,000 |
| Miscellaneous Pre-Opening Expenses | $45,000 to $60,000 |
| Rent – First 3 Months | $17,500 to $27,500 |
| Additional Funds – 3 Months | $40,000 to $50,000 |
| Total | $327,200 to $449,000 |
Average Revenue (AUV)
How much revenue can you make with a Plato’s Closet franchise? A Plato’s Closet franchised store makes on average $1,185,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $701,000 yearly revenue for similar fashion franchises. Below are 10 Plato’s Closet competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Plato’s Closet Franchise Disclosure Document
Frequently Asked Questions
How many Plato’s Closet locations are there?
As of the latest data, there are a total of 515 Plato’s Closet locations, all of which are franchised. The company does not have any company-owned stores.
What is the total investment required to open a Plato’s Closet franchise?
The total investment required to open a Plato’s Closet franchise ranges from $327,000 to $449,000.
What are the ongoing fees for a Plato’s Closet franchise?
A Plato’s Closet franchise requires ongoing fees of a 5% royalty fee and a 2% marketing fee, both based on gross sales. These fees support brand use, operational systems, and national marketing efforts for franchise growth and visibility.
What are the financial requirements to become a Plato’s Closet franchisee?
To become a Plato’s Closet franchisee, the financial requirements include having a minimum net worth of $500,000 and liquid capital of at least $150,000.
These financial criteria ensure that potential franchisees have the necessary resources to cover the initial investment, operational costs, and any unexpected expenses that may arise while establishing the business.
How much can a Plato’s Closet franchise owner expect to earn?
The average gross sales for a Plato’s Closet franchise are approximately $1.19 million per location. Assuming a 15% operating profit margin, $1.19 million yearly revenue can result in $179,000 EBITDA annually.
Who owns Plato’s Closet?
Plato’s Closet is owned by Winmark Corporation, a company specializing in franchising resale retail stores. Winmark also owns other resale franchise brands such as Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round.
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