Clothes Mentor Franchise FDD, Profits & Costs (2025)
Clothes Mentor is a prominent resale franchise in the United States, specializing in fashionable women’s apparel and accessories. Established in 2001 and launching its franchise program in 2006, the company operates from its headquarters in Plymouth, Minnesota.
Today, the brand has grown to more than 120 locations across 30+ states. Each store features a wide selection of gently used designer items, including clothing, shoes, handbags, and accessories, offered at discounts of up to 70% off standard retail prices. The franchise serves women of all sizes—from 0 through 26—as well as maternity wear, highlighting both inclusivity and affordability.
A key factor that sets Clothes Mentor apart is its inventory system. Instead of relying on wholesalers, stores purchase items directly from local customers, paying them in cash immediately. This customer-to-customer exchange not only strengthens community connections but also promotes eco-friendly and sustainable fashion.
Initial Investment
How much does it cost to start a Clothes Mentor franchise? It costs on average between $272,000 – $396,000 to start a Clothes Mentor franchised store.
This includes expenses for store build-out, fixtures, equipment, initial inventory, and early operating costs. The total investment varies based on several factors, such as the size and layout of the store, market location, and whether the franchisee decides to lease or purchase the retail space.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 |
| Leasehold Improvements | $25,000 to $60,000 |
| Signs | $5,000 to $9,000 |
| Fixtures and Supplies | $50,000 to $70,000 |
| Proprietary Software and POS System | $19,000 |
| Inventory | $50,000 to $70,000 |
| Deposits, Business Licenses and Permits | $7,000 to $15,000 |
| Legal and Accounting | $0 to $4,000 |
| Security | $7,000 to $10,000 |
| Travel Expenses to Attend Training | $4,000 to $8,500 |
| Pre-Opening Labor Expenses | $10,000 to $15,000 |
| Grand Opening Advertising | $16,000 to $20,000 |
| Miscellaneous Preopening Expenses | $14,000 to $20,000 |
| Rent – 3 Months | $20,000 to $25,000 |
| Additional Funds – 3 Months | $20,000 to $25,000 |
| TOTAL | $272,000 to $395,500 |
Average Revenue (AUV)
How much revenue can you make with a Clothes Mentor franchise? A Clothes Mentor franchised business makes on average $715,000 in revenue (AUV) per year.
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Frequently Asked Questions
How many Clothes Mentor locations are there?
Clothes Mentor has a network of 120 stores across the United States. All of these locations are franchise-owned, with the brand currently operating no company-owned stores.
What is the total investment required to open a Clothes Mentor franchise?
The total investment required to open a Clothes Mentor franchise ranges from $272,000 to $396,000.
What are the ongoing fees for a Clothes Mentor franchise?
Clothes Mentor requires franchisees to pay an ongoing royalty fee of 4% of total net sales. In addition, there is a national marketing and promotion fee of $2,000 per year, which may be increased by the franchisor to a maximum of $3,000 annually with notice.
Franchisees are also obligated to allocate at least 5% of their total net sales to local advertising, often carried out through cooperative efforts.
What are the financial requirements to become a Clothes Mentor franchisee?
To qualify as a Clothes Mentor franchisee, applicants must demonstrate a minimum net worth of approximately $400,000 and have at least $90,000 in liquid capital available.
How much can a Clothes Mentor franchise owner expect to earn?
The average gross sales for a Clothes Mentor franchise are approximately $0.72 million per location. Assuming a 15% operating profit margin, $0.72 million yearly revenue can result in $108,000 EBITDA annually.
Who owns Clothes Mentor?
Clothes Mentor franchise is owned by NTY Franchise Company, a franchising group based in Minnetonka, Minnesota, that also owns several other resale brands such as Once Upon A Child, Plato’s Closet, and Style Encore.
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