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Franchise 500 2023
2024 Franchise 500 Rank
#365 Ranked #343 last year
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Initial investment
$281K - $410K
Units as of 2023
502 Increase 4.4% over 3 years

The perfect candidate for a Plato's Closet franchise has a love of fashion, style, and community to go along with with a passion for sustainability.

Plato's Closet, which was founded in 1998, is one of the leading second-hand brand-name clothes and accessories stores in North America. They buy and sell gently used brand-name clothing and accessories that specifically appeal to youth. With over 475 locations, their brand is all about affordable fashion, inclusivity, and enhancing style.

You typically do not need expertise in fashion, but instead a willingness to provide quality style options to the community. Plato's Closet may give you the training you need to run your business.

Why You May Want to Start a Plato's Closet Franchise

Running a Plato's Closet franchise means you can buy gently used clothes from people and sell them to others. You also get to own one of the leading stores directed at teenagers, providing a client base that is unique and typically ready to buy. They resell brand names like Uggs, Adidas, Aéropostale, and more at a fraction of the price. They are firm in their beliefs that fashion should come with community and sustainability.

A Plato's Closet franchise might be an excellent opportunity to become part of the fashion industry. Being a Winmark brand, they have established themselves as a retail franchise leader in the resale space with affordable prices and great finds.

What Might Make a Plato's Closet Franchise a Good Choice?

Many times since its founding, Plato's Closet has been ranked in Entrepreneur’s Franchise 500. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

To be part of Plato's Closet team, you should make sure you’re financially ready for an initial investment consisting of a franchise fee and other startup costs. You’ll want to make sure you have enough capital available to cover ongoing fees, as well. These ongoing fees will include royalty, advertising, and potential renewal fees.

How Do You Open a Plato's Closet Franchise?

To start a Plato's Closet franchise, you can fill out a franchise inquiry form. A Plato's Closet franchise representative may reach out to you to begin the franchise process by first checking your financial qualifications. You might then have meetings with other franchisees to hear about their experience as Plato’s Closet franchisees.

You usually have to visit Plato's Closet corporate headquarters in Minneapolis, Minnesota for discovery day to get more information from the franchise team. They will also use this opportunity to learn more about you and your potential fit with the franchise. Once you have signed on board, you generally attend their intensive training program that will help equip you to run the business. Plato's Closet is ready to support your franchise every step of the way. Soon you may be opening your door to excited customers ready to buy name-brand items. 

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Company Overview

About Plato's Closet

Industry Retail
Related Categories Apparel & Accessories, Miscellaneous Children's Businesses, Children's Retail
Founded 1998
Parent Company Winmark Corp.
Leadership Brett Heffes, CEO
Corporate Address 605 Hwy. 169 N., #400
Minneapolis, MN 55441
Social Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest

Business Overview

Franchising Since 1999 (25 years)
# of employees at HQ 89
Where seeking

This company is offering new franchises throughout the US.

This company is offering new franchises in the following international regions: Canada

# of Units 502 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Plato's Closet 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 Information Circle
$25,000
Initial Investment Information Circle
$280,900 - $409,800
Net Worth Requirement Information Circle
$400,000
Cash Requirement Information Circle
$75,000 - $90,000
Royalty Fee Information Circle
5%
Ad Royalty Fee Information Circle
$1.5K/yr.
Term of Agreement Information Circle
10 years
Is franchise term renewable? Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing Plato's Closet has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory

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 50 hours
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed? No
Can this franchise be run from home/mobile unit? Information Circle
No
Can this franchise be run part time? Information Circle
No
# of employees required to run 3-5
Are exclusive territories available? Information Circle
Yes
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Franchise 500 Ranking History

Compare where Plato's Closet landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where Plato's Closet ranked on other franchise lists? Find out below.

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022