Clothes Bin
Formerly known as Frontline Service Corp (Recycling)
Bottom line
- Total investment $162K – $217K including a $50K franchise fee.
- Average unit revenue of $359K/year (median $242K). Estimated payback in 1.7 years.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 29 loans (below the industry average).
- System growing at 133.3% CAGR over 3 years with 74 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Clothes Bin unit return on the cash you put in?
Unlevered ROIC · per unit
47%
In Yale's "attractive" band (30–60%)
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
Overview
About
Franchisees operate Clothes Bin consignment stores—typically small-footprint retail locations where customers buy and sell gently used clothing and accessories. Day-to-day activities include managing inventory, processing consignor payments, merchandising displays, handling customer transactions, and maintaining compliance with consignment agreements.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 42 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
62 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Clothes Bin · FDD (2025) PDF