How much does it cost to open a Clothes Mentor franchise?

The total initial investment for a Clothes Mentor franchise ranges from $305,000 to $428,500. This includes the franchise fee of $25,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Clothes Mentor franchise?

Clothes Mentor franchisees pay a 4.0% royalty fee and a 5.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Clothes Mentor franchise?

Based on Item 19 financial performance data, the median Clothes Mentor franchise generates $709,615 in annual revenue. Estimated owner profit is approximately $49,673.

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Retail

Clothes Mentor Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$305,000 – $428,500

Franchise Fee

$25,000

Royalty Rate

4.0%

Initial Investment Range

Low: $305,000 High: $428,500

The total initial investment to open a Clothes Mentor franchise ranges from $305,000 to $428,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $25,000.

Midpoint estimate: $366,750

Franchise Fee

$25,000

One-time initial fee

The Clothes Mentor franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Clothes Mentor brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

4.0%

of gross revenue

Ad/Marketing Fund

5.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	4.0	PCT	Payable weekly by electronic funds transfer each Wednesday following the week (Sunday through Saturday) in which sales were made.
Taxes	N/A	VARIABLE	If a state imposes these taxes on Royalty Fees or other amounts paid to franchisor, and franchisor is not able to get an equal tax credit (resulting in double taxation or taxation at a higher rate), franchisor may collect these amounts from franchisee to the extent they exceed the tax credit received.
National Marketing and Promotional Fee	2000.0	FIXED	Currently $2,000 per year, although franchisor may increase the NMF Fee to an amount not exceeding $3,000 per year on 60 days' notice. Payable $1,000 on March 31 each year, and $1,000 on September 30 each year. Used for national marketing and promotional activities.
Local Advertising	5.0	PCT	Minimum amount, when combined with cooperative advertising expenses, is 5% of total Net Sales. Minimum amount must be spent during each calendar year. If franchisee does not spend the required minimum amount, franchisor may require deposit of the difference.
Advertising Cooperative	N/A	VARIABLE	Amount determined by local cooperative. Established by franchisor or franchisees. Contributions to Advertising Cooperative are credited toward local advertising obligation.
Transfer Fee	N/A	VARIABLE	Due before completion of transfer. Payable when the Franchise Agreement or a substantial portion of the assets of the Store or any controlling interest in franchisee is transferred. No transfer fee is due if the transfer is to an immediate family member.
Transferee Training Fee	500.0	FIXED	Currently $500 per transfer. Payable when franchisee transfers software license.
Renewal Fee	10000.0	FIXED	Due at least 30 days before renewal of Franchise Agreement.
Remodeling Expenses	N/A	VARIABLE	Franchisee must remodel Store or update/replace POS System on notice from franchisor. Excluding rebuilding obligations due to fire/natural disaster, franchisor will not require substantial modernization more than once every five-year period. Scope may range from painting to complete refurbishment including fixtures, signs, supplies and equipment.
Costs and Attorneys' Fees	N/A	VARIABLE	Franchisor may recover costs and reasonable attorneys' fees if franchisee loses in a dispute with franchisor.
Audit	N/A	VARIABLE	Due 30 days after billing. Fee is payable only if: (a) an audit shows an understatement of at least 2% of Net Sales for any month; or (b) an audit is required because franchisee did not timely provide required information.
Interest Expenses	18.0	PCT	Lesser of 18% per year or the maximum rate permitted by law (for California franchisees, the highest interest rate permitted under California law is 10% per year). Payable if franchisee does not timely pay Royalty Fee, NMF Fee or other amounts owed to franchisor or affiliates.
Insurance	N/A	VARIABLE	Payable before opening. If franchisee fails to obtain or maintain required insurance, franchisor may obtain insurance and seek reimbursement including late charges.
Technology Access Fee	1000.0	FIXED	Currently $1,000 per year. Payable $500 on March 31 each year, and $500 on September 30 each year. Franchisor may increase the Technology Access Fee with 30 days written notice. Will not increase by more than 10% each year. When signing Franchise Agreement, franchisee pays prorated portion for remaining months in calendar year. Used for Clothes Mentor website and extranet system, and other internet technology expenses.
Additional Training Fee	200.0	FIXED	Currently up to $200 per person per day. Due before training occurs. Incurred for new manager training and additional training franchisor requires.
E-Commerce Program Fee	2.0	PCT	Currently 2% of online Net Sales. Payable monthly by electronic funds transfer the first Friday following the month in which sales were made via the e-commerce website. Beginning the first month franchisee has online sales. Franchisor may modify the E-Commerce Program Fee upon 30 days' notice, and will not increase more than once every calendar year. Franchisor reserves right to discontinue the E-Commerce Program at any time. In addition to these amounts, franchisee will pay designated vendors any additional amounts they charge for the E-Commerce Program.
Proprietary Software Fee	3000.0	FIXED	Currently $3,000. Payable to franchisor's designated supplier (currently Resale 1, Inc.) when the software is ordered. Franchisor does not receive any portion of this fee from Resale 1, Inc.
Software Support	300.0	FIXED	Currently $300 per month. Payable monthly to franchisor's designated supplier (currently Resale 1, Inc.). Franchisor does not receive any portion of this fee from Resale 1, Inc.

What You Get

Financial Performance (Item 19)

Median Revenue

$709,615

per year, per location

Mean Revenue

$780,058

per year, per location

Profitability Estimate

Estimated Owner Profit

$49,673

per year

Profit Margin

7.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 7.4 years

Based on midpoint investment of $366,750 and estimated annual owner profit of $49,673.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

4.7%

Moderate risk — near industry average

Net Unit Growth

-12 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	125	—	—	—	122
2023	122	—	—	—	120
2024	120	—	—	—	113

Is a Clothes Mentor Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Clothes Mentor franchise opportunity:

Overall Score

53/100

Moderate opportunity

Est. Payback Period

7.4 yrs

Longer payback

Risk Level

Medium

4.7% annual closure rate

Clothes Mentor shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $709,615 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.