Last Updated on August 1, 2012 by DeanR
Plato’s Closet Franchise
Plato’s Closet is a franchise for a store that buys and resells clothing for teens and young adults.
It was founded in 1998 and started franchising in 1999. This is a business that is a best fit for people who has passion for fashion. It is currently the only store of its kind that caters to teens and young adults. Their focus is on gently used brand-named clothing and accessories.
They target those who want branded names and the latest trends with the price that is up to 70% off the prices in malls. Plato’s Closet is under Winmark together with Once Upon A Child, Music Go Round, and Play It Again Sports. They now have 328 locations in the United States and four locations in Canada.
How does Plato’s Closet work?
First is that the customers bring in their gently used clothing and accessories that are branded. They will then review your items while you browse through the store. They will give you an offer based on condition, style, brand name, and their current stocks.
When you come to an agreement, you will leave with some cash or maybe a new outfit. What makes them different is that they buy and sell branded items and those that were sold in stores within the past 12 to 18 months which means that they are in style and current.
What brand names do they usually buy and sell at Plato’s Closet?
They have Aeropostal, Abercrombie & Fitch, American Eagle, Billabong, Bebe, BKE, Charlotte Russe, Express, Citizens of Humanity, Guess, Forever 21, Hollister, Lei, Jessica Simpson, Levi’s, Miss Me, Lucky Brand, Pink by Victoria’s Secret, Mudd, Roxy, Rampage, Silver, Seven for All Mankind, Steve Madden, Skechers, Wet Seal, True Religion, and Xhilaration. These are only a few of the brand names they buy and sell. For clothing, they have hoodies, dresses, jeans, shirts, pants, shorts, sweaters, skirts, tanks, and t-shirts. Besides clothing, they have footwear, outerwear such as coats and scarves, CD’s, books, and DVD’s. They also have accessories like hats, belts, purses, jewelry, and sunglasses.
Cost and requirements on running a Plato’s Closet franchise
You need to have a net worth of $200,000 and a total liquid asset of at least $59,310 to $112,890. Expect to be investing about $197,000 to $377,000. The cost of the Plato’s Closet franchise fee is $25,000 with an on-going royalty fee of 5%. This is for a renewable 10 year term agreement. You will need about three to five employees to run one location. They allow multi-unit ownership. They do not allow absentee ownership.
What is included in the franchise package?
There will be two weeks training at the headquarters. There will be business planning assistance, on-going small business consultation, propriety computer system, and a toll free computer support center. You will be receiving newsletters and assistance at the grand opening. You will be given access to the internet and to purchasing cooperatives. Expect to be attending meetings and receiving occasional field evaluations. For marketing support, there will be ad slicks, co-op advertising, and access to professionally produced marketing resources and advertising through radio and TV commercials, print, and direct mail materials.
Plato’s Closet Contact Details
You may reach them at:
Address: 605 Hwy. 109 N., # 400 Minneapolis, Minnesota 55441
Phone: (800)592-8049 or (763)520-8581