Plato's Closet franchise research

Investment by format

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

Investment sourceFDD p.18 ↗

Franchise fees and ongoing costs

Franchise fee

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

Royalty

5% · 5% of Gross Sales (Continuing Fee), paid weekly by Wednesday for the prior week

Marketing contribution

2% (basis not captured; see original filing)

Technology fee

Currently $0; Winmark may establish one on 60 days' notice, estimated $500-$2,500 per year per Store

Other fees

Software Fee $295/month (starts later of month after opening or Sept 1, 2026; 10% annual increase); Marketing Fee $1,500/year (Jan 1); North American Ad Fund 2% of Gross Sales from July 1, 2026 (may rise to 3%)

Working capital (FDD Item 7)

$40,000 to $50,000 (Additional Funds - 3 months: initial wages, insurance, advertising, taxes, supplies, loan interest; excludes owner compensation and further inventory)

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.18 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median gross sales and gross profit (cost of sales only, not operating expenses), with quartile and sales-range breakdowns

Reporting period

12 months ended December 27, 2025

Sample

492 of 492 franchised Stores in the US and Canada open 12+ months under same owner (subset of 526 open stores; excludes 34 that opened or transferred in 2025)

Reported average

$1,307,875

Reported median

$1,206,301

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.44 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

515

Year-end outlets

526

Net change

+11

Derivation

ending minus starting outlets

Openings

18

Terminations

6

Non-renewals

1

Other closures

0

Reacquisitions

0

Transfers

16

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

42 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$500,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

24 loans

Historical charge-off share

1.09%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

1 / 92

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 Plato's Closet franchise cost?

standard (3,500-4,500 sq ft leased retail store): $355,700 to $467,900 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $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.18 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Plato's Closet owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median gross sales and gross profit (cost of sales only, not operating expenses), with quartile and sales-range breakdowns. Sample: 492 of 492 franchised Stores in the US and Canada open 12+ months under same owner (subset of 526 open stores; excludes 34 that opened or transferred in 2025). Period: 12 months ended December 27, 2025.

Item 19 performance sourceFDD p.44 ↗

What's the SBA charge-off rate for Plato's Closet?

1.09%; numerator / denominator: 1 / 92. 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: $500,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 24 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗