Do you want to open a boutique business by buying Clothes Mentor franchise? If YES, here is how much it cost to open a Clothes Mentor franchise successfully. If you are looking towards opening a Clothes Mentor Franchise, it will be nice for you to have a of what the company represents before enquiring about the total cost of opening the franchise.
Clothes Mentor LLC started operations in 2001 and they began selling franchise in 2007. They have their corporate headquarters at 4350 Baker Rd., #350 Minnetonka, MN 55343 and presently they have an estimated 135 franchise units in operation. Clothes Mentor, LLC is the franchisor. The franchisor offers individual franchises for the operation of Clothes Mentor stores.
The company buys and sells like-new brand and designer clothing, shoes and accessories for women. Clothes Mentor’s success is due to their perfect service, well-designed stores, and well-established business processes. Owning a Clothes Mentor franchise means consistent support of a franchise partner in business planning, marketing and choosing a store location.
Financial Investment Required to Open a Clothes Mentor Franchise
Clothes Mentor has the franchise fee of up to $25,000, with a total initial investment range of $173,000 to $340,000. Here are areas where you are expected to spend money and the cost associated with it;
- Initial Franchise Fee: $20,000 – $25,000
- Leasehold Improvements: $25,000 – $60,000
- Signs: $5,000 – $9,000
- Fixtures and Supplies: $30,000 – $40,000
- Proprietary Software and POS System: $13,500 – $13,500
- Inventory: $30,000 – $40,000
- Deposits, Business Licenses and Permits: $7,000 – $15,000
- Legal and Accounting: $0 – $4,000
- Security: $7,000 – $10,000
- Travel Expenses to Attend Training: $4,500 – $9,000
- Pre-Opening Labor Expenses: $10,000 – $15,000
- Grand Opening Advertising: $16,000 – $20,000
- Miscellaneous Pre-Opening Expenses: $14,000 – $20,000
- Rent – 3 months: $20,000 – $25,000
- Additional Funds (3 months): $20,000 – $25,000
ESTIMATED TOTAL (purchase option): $221,500 – $340,000
- Royalty Fee: 4 percent of total Net Sales.
- Taxes: The franchisor may collect from franchisees the cost of all taxes arising from their operation of the Store or the franchisor’s licensing of intellectual property (such as the Royalty Fees) to franchisees in the state where their Store is located, as well as any assessment on fees and any other income the franchisor receives from franchisees.
- National Marketing and Promotional Fee: Currently $2,000 per year, although the franchisor may increase the NMF Fee to an amount not exceeding $3,000 per year on 60 days’ notice to franchisees.
- Local Advertising: Minimum amount, when combined with cooperative advertising expenses, is 5percent of total Net Sales.
- Advertising Cooperative: This amount is determined by local cooperative.
- Transfer Fee: 1/3 of then-current Initial Franchise Fee.
- Transferee Training Fee: Currently $500 per transfer.
- Renewal Fee: $10,000
- Remodeling Expenses: Will vary under circumstances.
- Costs and Attorney’s Fees: Will vary under circumstances.
- Audit: Cost of audit plus 18percent interest per year from due date.
- Interest Expenses: Lesser of 18percent per year or the maximum rate permitted by law (for those franchisees subject to California law, the highest interest rate permitted under California law is 10percent per year).
- Insurance: Cost of insurance.
- Software Support: Currently $250 per month.
- Technology Access Fee: Currently $500 per year.
- Additional Training Fee: Currently up to $200 per person per day.
- E-Commerce Program Fees: When implemented, anticipated to be $100 per month plus 5percent of all Net Sales franchisees receive in connection with the E-Commerce Program.
If you are Satisfied with the Cost and You Are Interested; Here is how you can go about opening a Clothes Mentor franchise?
Steps on How to Open a Clothes Mentor Franchise
1. Ensure You Have Adequate Capitalization.
In order to open a Clothes Mentor women’s resale clothing franchise, you must have a net worth of more than $400,000.
2. Appraise the Investment Required for a Store Franchise.
You will need to consider real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.
3. Evaluate Your Prior Experience and Strengths.
You should thoroughly evaluate your prior business experience before applying to become a Clothes Mentor franchise owner.
4. Assess Market Availability.
You will want to look at the market availability for Clothes Mentor franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
5. Submit Your Application.
Your application will be reviewed by the Clothes Mentor franchise team. You will be emailed a confirmation receipt upon reception of your online application, where they will additionally provide the contact details of the franchise owner.
6. Receive Approval and Opening Your Clothes Mentor Franchise.
You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.