Plato's Closet® Investment Information

What You Need to Open Your Franchise Business

As in any successful start-up business, proper capitalization from Day 1 is key. We qualify candidates on an approximate investment of $250,000, however, this investment will vary depending on the market and other factors. Either individually or with a financial partner, our minimum net worth and liquid asset requirements are as follows:

  • $75,000 – Cash or liquid assets*
  • $175,000 – Equity or other assets to be used as collateral to obtain sufficient bank financing

*Liquid asset examples include cash, non-retirement stocks, and bonds, etc.

Verification of financial data such as cash available will be required as you move forward in our franchise process. Funds quoted above are in U.S. dollars.

Interested in more detailed franchise costs and investment information? Our team is ready to speak with you. Call us at (866) 595-0053 today!

Information for Canadian Franchisees

The most important start to a new business is proper capitalization. Therefore, minimum requirements for net worth and liquid assets have been established for those wishing to become a Plato’s Closet franchise owner. These figures are representative of each individual location.

Either individually, or with the assistance of a financial partner, applicants will have access to $75,000 USD in cash or liquid assets* that can be turned into cash. Additionally, the applicant should have assets of at least $175,000 USD to be used as collateral to obtain appropriate financing. These financial requirements are based on the total investment costs of the business.

*Liquid asset examples include cash, non-retirement stocks, and bonds, etc.

Please note: Written financial documentation will be required as you move forward in our franchise process.

Plato's Closet Fast Facts

Haven't yet been to one of our Plato's Closet locations? That's okay! Below, see a general overview of our franchise stores, what kind of merchandise they carry, who they serve, and more!

Sales and gross margins:

  • Top Quartile Average Gross Sales: $1,434,323*
  • Top Quartile Average Gross Profit: $883,162*

*As stated in Item 19 of the 2017 Plato’s Closet Franchise Disclosure Document (as reported by 434 of the 435 Plato’s Closet stores that had been in operation at least one year as of December 31, 2016). The Top Quartile Average Gross Sales and Average Gross Profit only relates to 108 of the reporting Plato’s Closet stores who ranked in the top 25% of the gross sales range. Of the 108 reporting stores in the top quartile, 42 or 39% of the stores attained or exceeded the top quartile Average Gross Sales and Average Gross Profit. A new franchisee’s results will likely differ from these results.

Real estate:

  • Power strip centers or suburban centers around regional shopping malls with a solid teen draw
  • 3,500 – 4,000 square feet

Product mix:

  • 98% gently used
  • 2% new

Core customers:

  • Females age 12 to 24
  • Middle to upper middle income households
  • Junior/senior high school and college students

If you meet these investment requirements and are interested in opening a Plato's Closet location, then Winmark Corporation invites you to contact us. Fill out our qualification form today.

People Love Buying and Reselling Used Items...Everyday!
  • 1 Sales & Gross Margin

    Average Store Gross Sales: $963,880*

    Average Gross Profit: $591,781*

    Top Quartile Average Gross Sales: $1,432,323*

    Top Quartile Average Gross Profit: $883,162*

  • 2 Core Customers

    Females age 12 to 24

    Middle to upper middle income households

    Junior/senior high school and college students

  • 3 Product Mix

    98% gently used

    2% new

  • 4 Real Estate

    Power strip centers or suburban centers around regional shopping malls with a solid teen draw

    3,500 – 4,000 square feet

*The Average Store numbers are the 2016 Average Gross Sales and Average Gross Profit amounts stated in Item 19 of the 2017 Plato’s Closet® Franchise Disclosure Document (as reported by 434 of the 435 stores that had been in operation at least one year as of December 31, 2016). Of the 434 reporting stores, 186 or 43% of the stores attained or exceeded the Average Gross Sales and 187 or 43% of the stores attained or exceeded the Average Gross Profit. The Top Quartile Average Gross Sales and Average Gross Profit only relates to 108 of the reporting Plato’s Closet® Stores who ranked in the top 25% of the gross sales range. Of the 108 stores in the top quartile, 42 or 39% of the stores attained or exceeded the top quartile Average Gross Sales and Average Gross Profit. A new franchisee’s results will likely differ from these results.

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