Clothes Mentor franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.16 ↗

Franchise fees and ongoing costs

Franchise fee

$20,000 to $25,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

4% · 4% of total Net Sales, payable weekly by EFT each Wednesday for the prior week's sales (Sunday-Saturday).

Marketing contribution

Not captured

Technology fee

Technology Access Fee: currently $1,500/year, paid $750 on March 31 and $750 on September 30; may increase up to 10%/year on 30 days' notice.

Other fees

National Marketing/Promotional (NMF) Fee: currently $3,000/yr (cap $4,000/yr); E-Commerce Program Fee: currently 2% of online Net Sales (cap 3%); Software Support fee: $300/month to designated POS supplier (Resale 1, Inc.)

Working capital (FDD Item 7)

$20,000 to $25,000 estimated for the first 3 months of Store operations (insurance premiums, taxes, store supplies, loan interest); excludes owner's compensation.

Fees sourceFDD p.13 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.16 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median Net Sales, and Gross Profit/Gross Profit Margin, of franchised Stores by quartile, for calendar years 2022-2025

Reporting period

Calendar years 2022, 2023, 2024 and 2025 (most recent complete year: 2025)

Sample

113 franchised Stores in the system as of December 31, 2025; systemwide averages based on the 103 Stores open the entire 2025 calendar year

Reported average

$819,550

Reported median

$743,699

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.37 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

120

Year-end outlets

113

Net change

-7

Derivation

ending minus starting outlets

Openings

Not captured

Terminations

Not captured

Non-renewals

Not captured

Other closures

Not captured

Reacquisitions

Not captured

Transfers

Not captured

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.46 ↗

SBA loan history

Loan activity

13 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$349,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

7 loans

Historical charge-off share

4.65%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

2 / 43

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Clothes Mentor franchise cost?

standard (single leased Store): $308,000 to $431,500 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $20,000 to $25,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.16 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Clothes Mentor owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median Net Sales, and Gross Profit/Gross Profit Margin, of franchised Stores by quartile, for calendar years 2022-2025. Sample: 113 franchised Stores in the system as of December 31, 2025; systemwide averages based on the 103 Stores open the entire 2025 calendar year. Period: Calendar years 2022, 2023, 2024 and 2025 (most recent complete year: 2025).

Item 19 performance sourceFDD p.37 ↗

What's the SBA charge-off rate for Clothes Mentor?

4.65%; numerator / denominator: 2 / 43. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $349,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 7 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗