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- 2022 Franchise 500 Rank
N/R Ranked #389 last year
- Initial investment
$129K - $186K
- Units as of 2022
39 11.4% over 3 years
Here’s what you need to know if you’re interested in opening a Clothes Bin franchise.
Clothes Bin is a clothing and textile recycling franchise that has developed a semi-absentee process for managing, collecting, distributing, and recycling clothes, shoes, and textiles throughout the U.S. Annually, a typical American will discard dozens of pounds of clothes, shoes, and materials. Most of this waste ends up in landfills, where they occupy unnecessary landfill space.
Partnering with more than 250 schools across the country, Clothes Bin educates the masses on the importance of textile recycling. The franchise also pays the schools for every pound recycled in a bin provided to them. Franchising since 2015, Clothes Bin has over 30 operating units and multiple employees in their headquarters. With absentee ownership allowed, the franchise can be run part-time from a home unit.
Why You May Want to Start a Clothes Bin Franchise
This part-time and semi-absentee ownership franchise may be easy to start, as it requires little equipment to operate. Franchisees who choose Clothes Bin could have more time to spend with their family and do things they love. Clothes Bin may be an ideal opportunity for veterans, firefighters, teachers, entrepreneurs, part-time workers, and anyone looking for a hands-on business.
The company's part-time nature and flexibility also may make it an excellent opportunity for existing franchisees who are willing to diversify and expand their interests into another industry. Prior sales experience is not necessary as a Clothes Bin franchisee. Clothes Bin offers a free training program that equips franchisees with the knowledge required to start and run the business.
What Might Make a Clothes Bin Franchise a Good Choice?
To be part of the Clothes Bin team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include royalty fees and potential renewal fees. A typical franchise agreement runs for five years. Franchisees may be allowed to renew their agreement if they meet the Clothes Bin requirements. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Clothes Bin has third-party sources offering financial aid to franchisees that cater to franchise fee, startup costs, and equipment. However, you may need to meet a different set of requirements to get financial assistance.
As you decide if opening a Clothes Bin franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Clothes Bin franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
How To Open a Clothes Bin Franchise
The first step towards Clothes Bin ownership begins with filling out a simple franchise request form. A Clothes Bin franchise representative may contact you to provide you with additional information about their franchise opportunity after receiving your request.
As you progress through the franchising process, be prepared to speak with current franchisees and franchise executives. Prepare questions for them as you read the brand's Franchise Disclosure Document. You may then be asked to attend a discovery day at company headquarters in Davie, Florida.
Should you be granted a Clothes Bin franchise, a suitable territory will be allocated to you, and you'll pay the necessary initial fees. After this, you will participate in the relevant training program and be free to open your Clothes Bin franchise.
About Clothes Bin
- Franchising Since
- 2015 (7 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, West Virginia, Wyoming
- # of Units
- 39 (as of 2022)
- Corporate Address
3911 S.W. 47th Ave., #903
Davie, FL 33314
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Clothes Bin franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $129,270 - $186,295
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $5,000 off first-unit franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Term of Agreement
- 5 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Clothes Bin has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 16 hours
- Classroom Training
- 8 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesSEOEmail Marketing
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Clothes Bin landed on this year’s Franchise 500 Ranking versus previous years.
Are you eager to see what else is out there? Browse more franchises that are similar to Clothes Bin.
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