The Closet Trading Co.

The Closet Trading Co.

Information based on 2021 FDD

Retail · Clothing & Fashion

Investment min
$142K
Total: $142K–$360K
Avg gross revenue
$564K
Unit-level, 2021
Franchise fee
$40K
Per current disclosure
Royalty
5%
of gross revenue
Locations
1
Franchising since 2019

Description

What is The Closet Trading Co.?

The Closet Trading Co. represents a sophisticated approach to the resale fashion industry, offering a curated shopping experience that bridges the gap between luxury consignment and contemporary fashion. Since 2003, this boutique franchise has been revolutionizing the way fashion-conscious consumers buy, sell, and trade high-end clothing and accessories.

What sets The Closet Trading Co. apart is its carefully curated selection process and commitment to authenticity. Each location operates as an upscale boutique, providing a premium shopping environment that feels more like a high-end retail store than a traditional consignment shop. The franchise specializes in designer and contemporary brands, ensuring that customers have access to quality fashion at accessible price points.

The business model is built on sustainability and circular fashion, appealing to environmentally conscious consumers who appreciate both style and responsible consumption. Store owners benefit from multiple revenue streams, including direct purchases, consignment sales, and trade-ins, creating a dynamic and resilient business structure.

For franchisees, The Closet Trading Co. offers a proven system that combines traditional retail expertise with modern resale practices. The brand provides comprehensive training in merchandise selection, authentication processes, pricing strategies, and customer service excellence. Their boutiques typically feature a mix of both new and gently used items, creating an exciting treasure-hunt atmosphere that keeps customers returning regularly.

With its focus on premium service, sustainable fashion, and a carefully curated shopping experience, The Closet Trading Co. stands out as an innovative player in the growing resale market, offering entrepreneurs an opportunity to be part of the future of fashion retail.
  • Twenty years operational experience
  • Below average investment requirements
  • Boutique fashion retail positioning
  • Selective franchise expansion model
  • Established retail concept foundation
  • Accessible entry-level investment range

Location Analysis

Where The Closet Trading Co. wins

The Closet Trading Co., an upscale resale clothing franchise, maintains a selective presence with a carefully controlled expansion strategy focused on strategic market development. While comprehensive geographic data is limited, the brand's focus on designer consignment retail suggests optimal positioning in affluent metropolitan areas with fashion-conscious demographics and strong resale market potential.

Ideal locations for The Closet Trading Co. franchises typically include upscale shopping districts or lifestyle centers in areas with high disposable income, significant fashion interest, and a strong sustainability mindset. Key demographic indicators should include median household incomes above $75,000, a high concentration of professional women aged 25-54, and proximity to luxury retail corridors.

The current selective franchise presence presents substantial expansion opportunities across major U.S. markets, particularly in fashion-forward cities with established luxury retail presence. Prime markets for expansion include major metropolitan areas with strong resale culture such as New York, Los Angeles, Miami, and Chicago. Success factors for new locations include high foot traffic, proximity to complementary luxury retailers, and areas with strong environmental consciousness.

Prospective franchisees should focus on locations with substantial residential populations within a 3-mile radius, median home values above $400,000, and a demonstrated market for luxury goods and sustainable fashion.
Total US locations
5
Franchise units
1
Corporate locations
4
Avg. sq. footage
N/A
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Financial Analysis

The numbers behind The Closet Trading Co.

Avg gross revenue$564,403
Investment range$142,400 – $360,300
Investment midpoint$251,350
Brand fund1%
Royalty5%
Franchise fee$40,000
Min. net worth
Min. liquid capital
The Closet Trading Co. requires an investment range of $142,400 to $360,300, positioning it as an accessible entry point in the clothing and fashion retail sector. The minimum investment sits 24% below the sub-sector average of $188,172, making it attractive for emerging entrepreneurs seeking fashion retail opportunities. The maximum investment aligns closely with sector norms at $368,063, suggesting competitive positioning within established market parameters.

The clothing and fashion retail sector faces evolving consumer preferences toward sustainable fashion and experiential shopping, creating opportunities for differentiated concepts. However, the franchise's reported gross revenue of $564,403 trails the sub-sector average of $669,581, which may reflect the system's limited scale or market development stage.

With only five operating units since 2003, The Closet Trading Co. represents a boutique franchise system with measured growth. This limited scale may indicate selective expansion or market-specific positioning, though it also suggests reduced brand recognition compared to larger retail chains. The 20-year operational history demonstrates system stability and concept viability.

Prospective investors should consider the challenges facing traditional retail, including e-commerce competition and changing shopping behaviors. The investment suits operators with retail management experience and understanding of local fashion markets. Territory exclusivity and market protection become crucial given the competitive retail landscape.

Ideal candidates possess $150,000+ liquid capital, retail operations background, and commitment to hands-on management. Success likely depends on location selection, inventory management, and community engagement strategies.
Did you know? Did you know that launching your own The Closet Trading Co. franchise - where fashion lovers can buy, sell, and trade trendy clothing in a sustainable marketplace - requires a total investment of $142,400 to $360,300, which includes the $40,000 franchise fee plus all the startup costs needed to create your stylish resale boutique that's helping revolutionize how people think about secondhand fashion?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$142K–$360K
Most common
$142,400
Minimum
$251,350
Midpoint
$360,300
Maximum

Per FDD Item 7, total initial investment ranges from $142,400 to $360,300. The midpoint $251,350 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$800K$640K$480K$320K$160KN/A
$336K
$564K
2020
2021
2022
Avg
$300K
YOY change (2021 -> 2022)
+68%

According to Item 19 of the Franchise Disclosure Document, The Closet Trading Co. has an average gross revenue of $564K. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

+25% YoY
654210
2016
2017
2018
2019
2020
2021
2022
5 units open as of 2021 FDD+1 in last 12 mo

2021 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for The Closet Trading Co.'s 2021 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2021 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a The Closet Trading Co. franchise typically ranges between $142,400.00 and $360,300.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2021. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

The Closet Trading Co.
The Closet Trading Co.
$564K avg revenue · 1+ US franchises

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