Grand Opening
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As incurred

The Closet Trading Co.

Table of Content
1. Franchise Snapshot
2. Franchise Overview
3. Performance and Metrics
4. Our Take
5. Additional Resources

1. Franchise Snapshot

Franchise Status
Active
Basic Information
Industry
Retail
Category
Other
Investment Range
$137,400 - $350,300
Total US Locations
6
Franchise Units
3
Founding Year
2003
Started Offering Franchises
2019
Management Capacity
Owner Operator
Job Count
3
Prior E2 Investors?
Prior Visa Franchise Clients?
Royalty Fee
5%
Marketing Fee
1%
Franchise Fee
$40,000
Headquarters (City, State)
Santa Barbara, CA
Square Footage
1400 - 1400
Retail Location?
Yes
Agreement Term Length
10 Years
Video

In these videos you will learn about the company firsthand. And they will also tell you in a short form about the financing of the enterprise.

*Information presented in these videos may change over time and may not reflect the most current franchise offering. Prospective franchisees should review the latest Franchise Disclosure Document (FDD) and consult directly with the franchisor for updated information.

2. Franchise Overview

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Overview

The Closet Trading Company was formed in 2003, and the concept is focused on selling contemporary designer clothing, shoes, and accessories. They specialize in current, on-trend styles from designer and premium labels. They have become the first consignment or resale business to operate at Westfield. Their stores do not compete with one another in the way that standard retail stores do, because each store carries a unique inventory. The Closet Trading Co. works primarily on consignment, which means franchisees pay for their inventory solely after they sell it.

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Management team / founders

Johanna Zlenko is the founder and owner of the The Closet Trading. She began her experience in the Retail Products and Services industry by helping open a shop called “The Closet" in 2007 after graduating with a BA in Global Studies. Zlenko has received industry recognition as the recipient of the 40 under 40 award by Pacific Coast Business Times where she was the recipient of Spirit of Entrepreneurship Award, amongst others. Zlenko brings extensive experience in business development in the retail industry, management, marketing & advertising, operations, sales & event management and of course retail styles & trends.

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Focus of owner for daily business operations

As a The closet trading franchisee, the main facets of the business entail: 1. Establishing and overseeing in-store operations; 2. Promoting local marketing efforts within the community; 3. Review of financials; 4. Hiring and managing in-store employees

3. Performance & Metrics

Franchisor Fees | Item 6
Franchise Value
Industry Median
All Franchises Median
Royalty Fee
5%
5%
6%
Marketing Fee
Franchise Fee
$40,000
Total Investment Cost | Item 7
Type of Expenditure
Low Amount
High Amount
When due
Initial Franchise Fee
$40,000
Upon signing Franchise Agreement
Initial Training
$4,500
$5,500
30 days prior to training and as incurred during training
Lease for Premises
$2,000
$12,500
Upon signing lease or as agreed with landlord
Improvements for Store Build Out
$15,000
$75,000
As incurred
Equipment and Fixtures
$15,000
$50,000
As incurred
Signage
$5,000
$25,000
As incurred
Opening Inventory
$2,500
$5,000
As incurred
Shipping for Opening Inventory
$1,000
$5,000
As incurred
Supplies
$500
$2,500
As incurred
Licenses, Permits, Deposits and Prepaid Expenses
$500
$1,000
Before opening
Grand Opening
$5,000
$10,000
As incurred
Professional Fees
$500
$7,000
As incurred
Insurance (3 months)
$900
$1,800
Prior to opening
Database Management, Point of Sale System, Computer Hardware and Software Fee
$20,000
At initial training
Additional Funds (3 months)
$25,000
$90,000
As incurred
TOTAL ESTIMATED INITIAL INVESTMENT:
$137,400
$350,300
Outlets and Franchisee Information | Item 20
Outlet type
Year
Outlets at the start of the year
Outlets at the end of the year
Net change
N/A
2020
0
0
0
Franchised
2021
0
1
+1
N/A
2022
1
3
+2
N/A
2020
4
4
0
Company-Owned
2021
4
4
0
N/A
2022
4
3
-1
N/A
2020
4
4
0
Total Outlets
2021
4
5
+1
N/A
2022
5
6
+1
Net Unit Growth (Recent year)
Net Unit Growth (Recent 3 years)
Franchise Health Metrics
Growth Rate
1 year / 3 years
Failure Rate
1 year / 3 years
Franchise for Sale Rate
1 year / 3 years
The Closet Trading Co.
Industry median
Franchise Health Metrics
Franchise Historical Loan Metrics
10 Year Cumulative Charge Offs by $ of Loans
10 Year Cumulative Defaults
3 Year Predicted Default Rate
*Please note the information provided here is sourced from Lumos. We do not guarantee its accuracy or completeness. For verification, please refer to Lumos directly.
Item 19 – Financial Performance Representations
Historical financial performance representations
Franchise Financials
Franchisor company financial information, if disclosed by the franchisor.
Litigation & Bankruptcies
% of Franchisees Undergoing Litigation
0
% of Franchisees with Completed Litigation
0
Number of Bankruptcies Disclosed
0
*The litigation information displayed has been reviewed by our Product Development team. Franchises featured on this platform have been thoroughly assessed. However, Visa Franchise strongly recommends consulting with your own legal counsel for further guidance.

4. Our Take

Its an interesting opportunity for those looking a business in clothes, accesories and fashion. This is good retail shop, which is flexible and the inventory is granted by consigment.