The Closet Trading Company Franchise FDD, Profits & Costs (2025)
The Closet Trading Company is a resale-fashion franchise that first opened its doors in 2003. The concept originated in Santa Barbara, California, where the company continues to operate from today.
From the beginning, the brand developed a boutique-style approach to secondhand fashion, specializing in pre-owned designer apparel, shoes, handbags, and accessories for women. Franchising efforts started in 2019, marking the brand’s shift from a local boutique to a scalable resale model.
Its stores are designed to feel like upscale fashion spaces rather than traditional thrift outlets. Each location features a carefully selected mix of luxury and contemporary labels acquired through consignment, which helps franchise owners avoid the high upfront costs typically associated with retail inventory.
The Closet Trading Company positions itself around luxury resale, sustainable fashion practices, and personalized boutique service.
Initial Investment
How much does it cost to start a The Closet Trading Company franchise? It costs on average between $137,000 – $350,000 to start a The Closet Trading Company franchised facility.
This investment covers the expenses required to build out the boutique, purchase equipment, secure initial inventory through consignment or buying programs, and fund early operational needs. The total amount varies based on several factors, such as the size and layout of the store, the market where the boutique is located, and whether the franchisee is leasing or acquiring the retail space.
| Type of Expenditure | Amount |
|---|---|
| Signage | $5,000 – $25,000 |
| Opening Inventory | $2,500 – $5,000 |
| Shipping for Opening Inventory | $1,000 – $5,000 |
| Supplies | $500 – $2,500 |
| Licenses, Permits, Deposits and Prepaid Expenses | $500 – $1,000 |
| Grand Opening | $5,000 – $10,000 |
| Professional Fees | $500 – $7,000 |
| Insurance (3 months) | $900 – $1,800 |
| Database Management, POS System, Computer Hardware and Software Fee | $20,000 |
| Additional Funds (3 months) | $25,000 – $90,000 |
| Totals | $137,400 – $350,300 |
Franchise Disclosure Document
Frequently Asked Questions
How many The Closet Trading Company locations are there?
As of the most recent publicly available data, The Closet Trading Company (TCTC) reports 3 company-owned locations and 4 franchise-owned units.
What is the total investment required to open a The Closet Trading Company franchise?
The total investment required to open a The Closet Trading Company franchise ranges from $137,000 to $350,000.
What are the ongoing fees for a The Closet Trading Company franchise?
A The Closet Trading Company franchise pays a 5% royalty on gross sales. Franchisees also contribute a 1% marketing fee based on gross sales. In addition, there is a 1% technology fee calculated on gross sales.
Who owns The Closet Trading Company?
The Closet Trading Company franchise is owned by Johanna Zlenko as part of the parent company Luca B Styles.
Disclaimer
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