Clubstore Outlet Franchise FDD, Profits & Costs (2025)

Clubstore Outlet is a retail franchise offering discounted overstock and returned merchandise. It sources products from big-box retailers and wholesale clubs. The franchise provides significant savings to customers.
Founded in 2008, it began franchising in 2015. Clubstore Outlet now operates over 20 locations across 10 states. Its inventory includes clothing, electronics, furniture, and more.
Products are sourced at 65-90% discounts from retailers. Customers enjoy name-brand items at prices 25-50% lower than typical retail. This model makes it a recession-resistant business.
Clubstore Outlet offers a simple concept with fast ROI potential. The franchise seeks individuals with strong management and customer service skills. It continues to grow and expand across the U.S.
Initial Investment
How much does it cost to start a Clubstore Outlet franchise? It costs on average between $268,000 – $359,000 to start a Clubstore Outlet franchised facility.
This includes costs for setup, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the size of the store, its location, and whether the franchisee opts to lease or purchase the property.
Competitors
Below are a few Clubstore Outlet competitors as a comparison:
Frequently Asked Questions
How many Clubstore Outlet locations are there?
As of the latest data, Clubstore Outlet operates 9 franchised units currently open, with an additional 17 locations sold and in various stages of development.
What is the total investment required to open a Clubstore Outlet franchise?
The total investment required to open a Clubstore Outlet franchise ranges from $268,000 to $359,000.
What are the ongoing fees for a Clubstore Outlet franchise?
Clubstore Outlet franchisees pay a 6.5% royalty fee on gross sales. Additionally, there is a 1% advertising fee, though it is currently not being collected. These fees support brand operations and marketing efforts
What are the financial requirements to become a Clubstore Outlet franchisee?
To qualify as a Clubstore Outlet franchisee, you must have a minimum net worth of $500,000 and at least $90,000 in liquid capital. These financial prerequisites ensure that prospective franchisees possess the necessary resources to establish and sustain a successful franchise operation.
Who owns Clubstore Outlet?
Clubstore Outlet is owned by Tapp Palmer, who serves as the founder and CEO. He is believed to be the sole owner of the company.
Disclaimer
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