The Closet Trading Company

The Closet Trading Company is capitalizing on the very hot "recommerce" trend that is currently a $20-billion industry, and is expected to double in size by 2022. We are catering to a public that is developing a greater consciousness of "re-purposing", and a generation of Millenials who are erasing the social stigma previously associated with buying used merchandise
The Closet Trading Company is at the leading edge of the "circular economy", created, in part, by mindful consumers who are committed to more global sustainability.
Our business model creates a natural buying cycle that reduces the environmental impact of the retail clothing industry. This inspires a greater sense of responsibility in local communities and the impact we have on this planet.
Buying clothes is not a luxury -- it is a basic human need. Consumers understand and appreciate excellent quality, but don't want to pay the associated higher prices. At The Closet Trading Co., they can have the best of both worlds! High-end designer fashions at a "worker's wage" price point!
The best part is, by trading in their own lightly pre-loved fashion, our clients can "create their own discount" and refresh their wardrobe on any budget! As we say at TCTC, "When the magic's gone, pass it on!"
WHY The Closet Trading Company?
$20 billion industry that is expected to double to $41 billion by 2020
65% of the industry demographics are made up by the two largest age group - Boomers and Millennials
With the growth of resale, buyers are prepared to invest in higher-end items with the resale value in mind.
OUR IDEAL FRANCHISEE
Customer service oriented, HR/Management experience is helpful
Upstanding community member that identifies with and embraces The Closet Trading Company’s culture
Early adopter - no retail experience required
Executive mode or owner/operator options
AVAILABLE MARKETS
US markets available: All but: HI, IL, IN, MD, MN, NY, ND, RI, SD,VA, WI
HOT Regions/Desirable: Tier One Cities: Dallas, Atlanta, Austin, San Antonio, etc.
NOT available: HI, IL, IN, MD, MN, NY, ND, RI, SD,VA, WI
Available in Canada: NO
International Referrals: NO
BACKGROUND
Year founded: 2003
Year Franchised: 2018
Number of franchises currently operating: 0
Number of corporate owned franchises: 4
Home Based: NO
Absentee ownership available: YES
Accepting Master Franchisor and Area Developer Referrals: NO
Average number of employees required: 2-4
E2 Visa Friendly: NO
FINANCIAL DETAILS
Franchise Fee: Single: $40,000; $25K for 2nd; $15K for the 3rd and beyond
Providing earnings guidance in Item 19 in FDD: YES
Total investment range: $146,400.00 - $425,300.00
Net worth requirement: $250,000
Royalty: 5%
Additional fees: N/A
Financial assistance available: NO
VetFran program: NO
SUPPORT & TRAINING PROVIDED
Training and support program details:
Pre-opening:5 days of virtual classroom training, 5 days in our LA headquarters and locations Semi-absentee owners will bring managers to training
Grand Opening - One month period
Ongoing Monthly calls Seasonal buying guide (4/year) Webinars Corporate accessibility Authentication guides
Cost for Training: $20,000
(this is cost of training and grand opening - please refer to our FDD for further details)
Lodging and airfare included: YES
Site Selection Assistance: YES
Lease Negotiation Assistance: YES
Mentor following training: YES
Length of mentoring Franchisee: Corporate will remain readily available and mentor the franchisee throughout their partnership
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