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FranchiseVerdict

How Much Does a Clothes Mentor Franchise Cost?

Data from the 2026 Franchise Disclosure Document

Investment Summary

Total Investment

$308K – $432K

Franchise Fee

$25K

Royalty

4.0%

Ad Fund

$3,000

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Clothes Mentor is $25K. 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 Mentor franchise requires a total investment of $308K – $432K. 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 $25K.

Ongoing Costs

Beyond the initial investment, Clothes Mentor franchisees pay ongoing fees. The royalty fee is 4.0% of gross sales (Net Sales). The ad fund contribution is: $3,000. There is also a technology fee of $2K.

Net Worth & Liquid Capital Requirements

Clothes Mentor requires working capital of $20K – $25K 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 Mentor's Item 19 financial performance representation:

$820KAvg. Gross Sales

Median gross sales: $744K

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 Mentor?

SBA Loans Issued

55

Default Rate

7.3%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Clothes Mentor has 55 SBA-backed loans on record. The default rate is 7.3%, which is below the franchise industry average, indicating relatively lower lending risk. 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 Mentor franchise owners

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