Clothes Mentor Franchise Costs, Fees & FDD

Year Business Began: 2001

Franchising Since: 2007

Headquarters: Plymouth, Minnesota

Estimated Number of Units: 115

Franchise Description: Clothes Mentor, LLC is the franchisor. The franchisor offers individual franchises for the operation of Clothes Mentor stores, which buy and sell gently used and new women’s clothing and accessories. Franchisees will receive the right to own and operate a store at a location the franchisor approves and through the ecommerce platform, offering the products and services the franchisor approves and using its formats, designs, methods, specifications, standards, operating and marketing procedures and the “licensed marks,” including “Clothes Mentor” and “Once Upon a Mom.”
Training Overview: The franchisor conducts two separate training sessions. Franchisees (or if they are an entity, a principal owner) must attend 2.5 days of Business Training (session one) covering subjects that address pre-store opening procedures and tools that they will need prior to opening their store. Franchisees (or if they are an entity, a principal owner) and their store manager must attend 12 days of Operations and In-Store Training (session two). Operations training currently lasts five days and will cover subjects that address back-of-house administration, loss prevention, inventory management, customer service and store standards. In-store training will take place in the store location for a period of approximately two days and will focus on the key areas of running the new store. The additional five days of in-store training will occur in a designated franchised store. Franchisees may not open their store unless they (or if they are an entity, a principal owner) have successfully completed both sessions of the initial training program to the franchisor’s satisfaction. In addition, the franchisor may require that franchisees (or a principal owner of a franchisee that is an entity) and any store manager or any assistant store manager attend, or when available, participate by Internet in, supplemental and refresher training programs during the term of the Franchise Agreement.

Territory Granted: Franchisees will receive an exclusive territory surrounding the location of their store when they sign the Franchise Agreement (the protected area). The protected area will be determined by using natural trade areas and population numbers, but will be no less than a two-mile radius and no greater than a six-mile radius from a particular intersection. Typically, if franchisees will operate in a metropolitan area with a population in excess of 200,000, they will receive a protected area with a minimum population of 50,000. If franchisees locate their store in a smaller market, they typically will receive a protected area with a minimum population of approximately 25,000. During the term of the Franchise Agreement, if franchisees are complying with the provisions of the Franchise Agreement, the franchisor will not establish any other franchised or company-owned Clothes Mentor store in the protected area.

Obligations and Restrictions: Unless otherwise approved by the franchisor in writing, the store must at all times be under the franchisee’s direct supervision (or, if the franchise is a partnership, corporation or limited liability company, a principal owner or an operating manager who the franchisor has approved and who has satisfactorily completed the training program). If an operating manager supervises the store, the franchisee (or a principal owner) must remain active in store operations, including oversight of the operating manager and any communications with the franchisor. Franchisees must offer and sell in the store all, and only, those products and services that the franchisor has approved. Franchisees must at all times maintain an inventory of used and new women’s clothing and accessories in such quantities and variety that the franchisor directs.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew the Franchise Agreement for one additional 10-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation, nor does the franchisor receive payment or other consideration for the placing of financing.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Leasehold Improvements	$25,000	$60,000
Signs	$5,000	$9,000
Fixtures and Supplies	$70,000	$90,000
Proprietary Software and POS System	$22,000	$22,000
Inventory	$60,000	$80,000
Deposits, Business Licenses and Permits	$7,000	$15,000
Legal and Accounting	$0	$4,000
Security	$7,000	$10,000
Travel Expenses to Attend Training	$4,000	$8,500
Pre-Opening Labor Expenses	$10,000	$15,000
Grand Opening Advertising	$16,000	$20,000
Miscellaneous Pre-opening Expenses	$14,000	$20,000
Rent – 3 months	$20,000	$25,000
Additional Funds – 3 months	$20,000	$25,000
ESTIMATED TOTAL	$305,000	$428,500

 
Other Fees

Type of Fee	Amount
Royalty Fee	4% of total net sales.
Taxes	The franchisor may collect from franchisees the cost of all taxes arising from their operation of the store or the franchisor’s licensing of intellectual property (such as the royalty fees) to franchisees in the state where their store is located, as well as any assessment on fees and any other income the franchisor receives from franchisees.
National Marketing and Promotional Fee (NMF Fee)	Currently $2,000 per year, although the franchisor may increase the NMF Fee to an amount not exceeding $3,000 per year on 60 days’ notice to franchisees.
Local Advertising	Minimum amount, when combined with cooperative advertising expenses, is 5% of total net sales.
Advertising Cooperative	Amount determined by local cooperative.
Transfer Fee	1/3 of then-current initial franchise fee.
Transferee Training Fee	Currently $500 per transfer.
Renewal Fee	$10,000
Remodeling Expenses	Will vary under circumstances.
Costs and Attorneys’ Fees	Will vary under circumstances.
Audit	Cost of audit plus 18% interest per year from due date.
Interest Expenses	Lesser of 18% per year or the maximum rate permitted by law (for those franchisees subject to California law, the highest interest rate permitted under California law is 10% per year).
Insurance	Cost of insurance.
Technology Access Fee	Currently $1,000 per year.
Additional Training Fee	Currently up to $200 per person per day.
E-Commerce Program Fees	Currently, 2% of online net sales.
Proprietary Software Fee	Currently $3,000.
Software Support	Currently $300 per month.

The above information has been compiled from the FDD of Clothes Mentor. Year of FDD: 2025.
Franchise Direct's Disclaimer