Clothes Bin Franchise Cost, Revenue & Review 2026
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 unit revenue was $359K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $162K – $217K
- 28th pct Health & Fitn…
- Avg gross sales
- $359K
- Outlet subset9th pct Health & Fitn…
- Royalty
- N/A
- 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 avg · 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 unit revenue of $359K/year (median $242K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 89/100 (higher is better).
- 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
- 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 67% 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 41% below the health & fitness norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$104K
29.0% margin
Unlevered ROIC
47%
EBITDA / total invested capital
Payback
25 mo
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
47%
Within the 30–60% "attractive franchise" band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Clothes Bin units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $7.9M purchase
Total debt
$6.3M
SBA $3.9M + senior + seller note
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
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $359K
- Per unit, per year
- Median gross sales
- $242K
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 12
- Range (low → high)
- $70K→$1.1M
- 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
Average unit generates $359K/year in gross sales. Median is $242K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 1.9x. 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 averages
How Clothes Bin Compares
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
3-year detail · Item 20
- Opened (3yr)
- 47
- Closed (3yr)
- 1
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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.
Premium insight
SBA Lending Report
Deep-dive into Clothes Bin's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 13 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
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
Clothes Bin presents moderate-to-caution risk: attractive unit growth and profitability claims lack third-party verification (no Item 19), corporate financial health is unclear (going concern flag), and rapid expansion may not be sustainable.
Litigation (Item 3)
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)
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 89 / 100 verdict
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $114,372 average net income claim
- 02HIGHGoing Concern status is FALSE, suggesting potential financial instability or disclosure issues at corporate level
- 03MINORHigh royalty burden: $120/week ($6,240/year) plus franchise fee creates 5.4% annual royalty drag on $114k net income
- 04MINORRapid unit growth (84.2% YoY) may indicate unsustainable expansion, recruitment-driven model, or inflated unit count
- 05HIGHProtected territory and low litigation history provide limited differentiation in due diligence — could mask operational issues
- 06MINORThin 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 |
| 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
FDD download
Clothes Bin · FDD (2025) PDF
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: 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.
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 89 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.