Clothes Bin Franchise Cost, Revenue & Review 2026
- Investment
- $162K – $217K
- Disclosed sales
- $359K
- gross sales, not profit
- SBA charge-off
- Limited · 20 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Clothes Bin is a recycling franchise that collects used clothing, shoes, and textiles through branded drop-off bins and resells or recycles them. Franchisees run a route-based operation placing and servicing donation bins and managing collected goods in a territory.
FranchiseVerdict summary · 2026
A Clothes Bin franchise requires a total initial investment of $162K – $217K, including a $30K – $50K franchise fee. Per the 2025 FDD, average revenue per franchisee was $359K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $162K – $217K
- 28th pct Health & Fitn…
- Avg gross sales
- $359K
- Per franchisee, not per outletOutlet subset
- Royalty
- Flat fee
- Units
- 74
- 75th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $162K – $217K including a $50K franchise fee.
- RETURNSAverage revenue per franchisee of $359K/year (median $242K) (reported for a subset of outlets rather than the whole system). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict A (Strongest tier), verdict score 88/100 (higher is better).
- GROWTHPositive: net +32 franchised outlets in the latest year (35 opened, 0 closed); 27 signed but not yet open (Item 20).
- GROWTHSystem growing at 133.3% CAGR over 3 years with 74 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- FLSC Recycling, LLC
- Parent company
- Recycling Brands, LLC
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- Chairman
- Marc Douglas
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- FL
- HQ
- 3911 SW 47th Avenue, Suite 903, Davie, Florida 33314
- Auditor
- Crowe LLP
- Audited financials
- Franchisor revenue
- $6.4M
- vs $1.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Marc Douglas
- Headquarters
- FL
- Founded
- 2014
- FDD year
- 2025
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 52% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $92K | $127K |
| Total initial investment | $162K | $217K |
Source: Clothes Bin 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $162K – $217K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $40K
- Middle of category vs category
- Franchise fee
- $30K – $50K
- Middle of category vs category
- Royalty
- $120/week for initial 20 bins; escalates to $6/bin/week f…
- Ad fund
- Not currently collected; maximum $1.50/bin/week if establ…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $120/week for initial 20 bins; $180/week for 30 bins; $240/week for 40 bins; $6/bin/week for additional bins purchased later (minimum $120/week) |
| Technology fee | $100 |
| Transfer fee | $15K |
| Renewal fee | $20 |
What do units actually make?
Average unit sales run 25% below the health & fitness norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Clothes Bin until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$219K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Clothes Bin unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $359K
- Per franchisee, per year — not per outlet
- Median gross sales
- $242K
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and net income
- Sample size
- 13 franchisees
- vs category median 11
- Range (low → high)
- $70K→$1.1MCited, not corroborated — printed on page 63 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $359K/year in gross sales. Median is $242K — top performers pull the average up, so a typical unit earns less. Reported for a subset of outlets rather than the whole system.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 133.3% CAGR over 3 years across 74 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness medians
How Clothes Bin Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 74
- Opened
- 35
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.6%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- +133.3%
- Net unit change over 3 years
- 3-yr CAGR
- +133.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 2
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 27
- 0.36 per open outlet · Item 20 Table 5
- Projected new
- 30
- Franchisor's next-year forecast
- Transfer rate
- 4.1%
- Owners selling to other franchisees
- Termination rate
- 2.7%
- Franchisor-initiated terminations
- Ceased ops
- 1.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 26 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
26
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 20
- Loan volume
- $2.7M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Limited · 20 loans
- Limited SBA coverage: 20 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 20 loans
- 5-yr charge-off
- Limited · 20 loans
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 1
- Typical loan rate
- 8.8%
- avg rate to borrowers
- vs industry
- 16.7%
- NAICS 423930
- Jobs supported
- 61
- 2.3 per loan
- Lender concentration
- 45%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Clothes Bin franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Clothes Bin from SBA 7(a) FOIA data.
- Principal loss rate
- 5.4%
- Avg SBA guarantee
- 80%
- Avg interest rate
- 8.80%
- Avg chargeoff amount
- $144K
- Lender concentration
- 45.0%
- Job velocity
- 2.3 per $100K
- NAICS benchmark
- 16.7%
- NAICS 423930
- Jobs supported
- 61
Top SBA lendersTop lender holds 45% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 9 | $1.3M | 33.3% |
| 2 | The Huntington National Bank | 4 | $369K | N/A |
| 3 | Stearns Bank National Association | 3 | $402K | 0.0% |
| 4 | Zions Bank, A Division of | 1 | $100K | 0.0% |
| 5 | Celtic Bank Corporation | 1 | $150K | N/A |
| 6 | Platinum Bank | 1 | $187K | N/A |
| 7 | First Bank of the Lake | 1 | $148K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 3 | 1 | 33.3% |
| TXTexas | 3 | 0 | 0.0% |
| CTConnecticut | 2 | 0 | -- |
| MOMissouri | 2 | 0 | -- |
| OHOhio | 2 | 0 | -- |
| COColorado | 1 | 0 | 0.0% |
| GAGeorgia | 1 | 0 | -- |
| LALouisiana | 1 | 0 | -- |
| MAMassachusetts | 1 | 0 | -- |
| MNMinnesota | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Crowe LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenues for FY2024 comprise Franchise fees $2,094,686, Sales net $3,428,829, and Royalties and technology fees $865,952. Audited by Crowe LLP (Tampa, FL), report dated February 28, 2025; FY2023 audited by other auditors.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 88 / 100 verdict
- 01MINORHigh royalty burden: $120/week ($6,240/year) plus franchise fee creates 5.4% annual royalty drag on $114k net income
- 02MINORRapid unit growth (84.2% YoY) may indicate unsustainable expansion, recruitment-driven model, or inflated unit count
- 03HIGHProtected territory and low litigation history provide limited differentiation in due diligence — could mask operational issues
- 04MINORThin margin between investment ($161,940–$216,980) and year-one net income ($114,372) leaves minimal cushion for underperformance
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | Yes |
| Arbitration location | Miami, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 0 hrs
- Training location
- Online / virtual (Zoom)
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisee responsible; franchisor may assist optionally for additional fee (Bin Location Services)
- Franchisor financing
- Offered
- Item 10
- POS system
- Bin Location Information Program (BLIP) System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Bin Location Information Program (BLIP) System
Item 20 · call current owners
Franchisee Contacts
63 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Clothes Bin franchise?
The total investment to open a Clothes Bin franchise ranges from $162K – $217K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Clothes Bin franchise owners earn?
According to Item 19 of the Clothes Bin FDD, the average gross sales per unit is $359K. The median is $242K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures; Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Clothes Bin?
Clothes Bin is franchised by FLSC Recycling, LLC. Its parent company is Recycling Brands, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Clothes Bin FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Clothes Bin FDD and qualifies whose outlets they describe.
What is Clothes Bin's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Clothes Bin (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Clothes Bin franchise locations are there?
As of their most recent FDD filing, Clothes Bin has 74 total units in the United States, including 70 franchised units and 4 company-owned units. 35 new units were opened in the latest reporting year.
Is Clothes Bin a good franchise to buy?
FranchiseVerdict rates Clothes Bin as a A-grade franchise with a verdict score of 88 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.