Clothes Bin Franchise FDD, Profits, Costs & Fees (2024)
Clothes Bin® is a national franchise system specializing in the recycling of clothing and shoes. Founded in 2014 and headquartered in Davie, Florida, the company began offering franchise opportunities shortly after its inception.
Clothes Bin® provides a semi-absentee business model that allows franchisees to operate independently owned Bins placed in strategic locations for the collection of unwanted textiles.
The franchise distinguishes itself through its proprietary Bin Location Information Program (BLIP®), a technology that monitors each Bin’s capacity and optimizes collection routes, enhancing operational efficiency.
This system, combined with a focus on environmental stewardship, positions Clothes Bin® uniquely in the recycling industry.
As of the latest available data, Clothes Bin® has expanded its network to include numerous franchise units across the United States. The company continues to offer franchising opportunities nationwide, inviting entrepreneurs to join its mission of promoting sustainability and reducing landfill waste.
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Initial Investment
How much does it cost to start a Clothes Bin franchise? It costs on average between $140,000 – $194,000 to start a Clothes Bin franchised store.
This includes costs for equipment, Bin placement, initial inventory, and initial operating expenses. The exact amount depends on various factors, including the number of Bins you deploy, the locations selected, and whether the franchisee chooses to lease or purchase storage facilities.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $49,500 |
| Real Property | $1,700 – $8,000 |
| Computer and Software | $300 – $800 |
| GPS Bin Technology | $400 – $800 |
| Initial Purchase of Bins | $54,900 – $59,900 |
| Freight Fees | $7,995 |
| Trailer and Parking Space Rental | $800 – $2,800 |
| Mandatory Bin Placement (for first 20 Bins) | $5,995 |
| Bin Location Services | $0 – $7,490 |
| Truck Rental for Placement and Collections | $1,600 – $2,400 |
| Pallet Jack, Locks & Supplies | $400 – $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 | $300 – $800 |
| Additional Funds for First 3 Months of Operations | $15,000 – $40,000 |
| Total Estimated Initial Investment | $140,340 – $193,880 |
Average Revenue (AUV)
How much revenue can you make with a Clothes Bin franchise? A Clothes Bin franchised facility makes on average $280,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $425,000 yearly revenue for similar other retail franchises.
Below are 10 Bin competitors as a comparison:
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Clothes Bin Franchise Disclosure Document
Frequently Asked Questions
How many Clothes Bin locations are there?
As of the latest available data, Clothes Bin® operates over 400 Bins across the United States. These Bins are managed by franchisees in partnership with schools and religious organizations, contributing to the company’s mission of promoting textile recycling and environmental sustainability.
What is the total investment required to open a Clothes Bin franchise?
The total investment required to open a Clothes Bin franchise ranges from $140,000 to $194,000.
What are the ongoing fees for a Clothes Bin franchise?
Clothes Bin® franchisees pay a royalty fee of $6 per Bin weekly, covering brand use and system support. There are no additional marketing or advertising fees, allowing franchisees to focus resources on local efforts.
What are the financial requirements to become a Clothes Bin franchisee?
To become a Clothes Bin® franchisee, applicants are typically required to have a minimum net worth ranging from $250,000 to $500,000 and liquid capital between $30,000 and $125,000. These financial prerequisites ensure that franchisees possess the necessary resources to establish and sustain their business effectively.
How much can a Clothes Bin franchise owner expect to earn?
The average gross sales for a Clothes Bin franchise are approximately $0.28 million per location. Assuming a 15% operating profit margin, $0.28 million yearly revenue can result in $42,000 EBITDA annually.
Who owns Clothes Bin?
Clothes Bin® is owned by a team of experienced industry professionals, including Marc Douglas, Chairman; Nick Boariu, Chief Operating Officer; and Chris Brown, Vice President of Franchise Development. This leadership group combines expertise in franchising and sustainability to guide the company’s mission and support its franchisees.
Disclaimer
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