Clothes BinFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Clothes Bin franchise requires a total initial investment of $162K – $217K, including a $50K franchise fee. Per the 2025 FDD, average unit revenue was $359K[2]. SBA 7(a) loans show a 16.7% charge-off rate across 20 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $162K – $217K
- 28th pct Health & Fitn…
- Avg gross sales
- $359K
- 16th pct Health & Fitn…
- Royalty
- N/A
- Units
- 74
- 76th pct Health & Fitn…
- SBA default
- 16.7%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 70 to 30 over 3 years. Investigate why operators are leaving.
60% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $162K – $217K including a $50K franchise fee.
- Average unit revenue of $359K/year (median $242K), with an estimated 60% cash-on-cash return (based on P&L Bottom Line).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 16.7% across 20 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- 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
- $1.9M
- vs $6.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- Marc Douglas
- Headquarters
- FL
- Founded
- 2014
- FDD year
- 2025
- States available
- 26
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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $162K – $217K
- Better than avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $30K – $50K
- Near category avg vs category
- Royalty
- $120 per week or $6 per Bin per week
- Ad fund
- not greater than $1.50 per Bin per week
- Payback period
- 1.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $120 per week (20 Bins), $180 per week (30 Bins), $240 per week (40 Bins), or $6 per Bin with $120 minimum |
| Technology fee | $100 |
| Transfer fee | $15K |
| Renewal fee | $20 |
Financial Performance
- Avg gross sales
- $359K
- Per unit, per year
- Median gross sales
- $242K
- Avg p&l bottom line
- $114K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 60.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical
- Sample size
- 13 units
- vs category median 11
- Range (low → high)
- $70K→$1.1M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Clothes Bin Compares
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
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (yr3)
- +84.2%
- Net unit change last year
- 3-yr CAGR
- +133.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
- 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 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
- 16.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 83.3%
- 5-yr charge-off
- 100.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 1
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.
Risk analysis
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.
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: Yes
Score breakdown · what drove the 55 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Defined geographic area containing 150-350 gas station/convenience store sites |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 | Florida |
| 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
- On-site and off-site
- Time to open
- 4 mo
- From signing to launch
- 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
62 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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Clothes Bin's franchise failure rate?
Based on SBA 7(a) loan data, Clothes Bin has a charge-off rate of 16.7% across 20 loans, meaning 16.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 B-grade franchise with a risk score of 55 out of 100, 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.
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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.