- 2024 Franchise 500 Rank
-
#365 Ranked #343 last year
- Initial investment
-
$287K - $417K
- Units as of 2024
-
514 5.8% 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.
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 | Shannon Hoppe, VP, Franchise Development |
| 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 | 514 (as of 2024) |
|
|
|
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
|
$25,000 |
|---|---|
|
Initial Investment
|
$287,300 - $417,300 |
|
Net Worth Requirement
|
$400,000 |
|
Cash Requirement
|
$75,000 - $90,000 |
|
Royalty Fee
|
5% |
|
Ad Royalty Fee
|
$1.5K/yr. |
|
Term of Agreement
|
10 years |
| Is franchise term renewable? | Yes |
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, accounts receivable, payroll |
|---|
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 | 21.5 hours |
|---|---|
| Classroom Training | 40 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?
|
No |
|
Can this franchise be run part time?
|
No |
| # of employees required to run | 3-5 |
|
Are exclusive territories available?
|
Yes |
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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