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FranchiseVerdict

How Much Does a Clothes Bin Franchise Cost?

Data from the 2025 Franchise Disclosure Document

Investment Summary

Total Investment

$162K – $217K

Franchise Fee

$50K

Royalty

$120 per week or $6 per Bin per week

Ad Fund

not greater than $1.50 per Bin per week

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Clothes Bin is $50K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Clothes Bin franchise requires a total investment of $162K – $217K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $20K to $40K.

Ongoing Costs

Beyond the initial investment, Clothes Bin franchisees pay ongoing fees. The royalty structure is: $120 per week or $6 per Bin per week. The ad fund contribution is: not greater than $1.50 per Bin per week. There is also a technology fee of $100.

Net Worth & Liquid Capital Requirements

Clothes Bin requires working capital of $20K – $40K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Clothes Bin's Item 19 financial performance representation:

$359KAvg. Gross Sales

Median gross sales: $242K

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Clothes Bin?

SBA Loans Issued

20

Default Rate

16.7%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Clothes Bin has 20 SBA-backed loans on record. The default rate is 16.7%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

Talk to current Clothes Bin franchise owners

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