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

Why this franchise?
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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?
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Prior Visa Franchise Clients?
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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.

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
$2,584
$2,944
Upon signing Franchise Agreement
Initial Training
$2,584
$2,944
30 days prior to training and as incurred during training
Lease for Premises
$2,584
$2,944
Upon signing lease or as agreed with landlord
Lease for Premises
$2,584
$2,944
As incurred
Equipment and Fixtures
$2,584
$2,944
As incurred
Signage
$2,584
$2,944
As incurred
Opening Inventory
$2,584
$2,944
As incurred
Shipping for Opening Inventory
$2,584
$2,944
As incurred
Supplies
$2,584
$2,584
As incurred
Licenses, Permits, Deposits and Prepaid Expenses
$2,584
$2,944
Before opening
Professional Fees
$2,584
$2,944
As incurred
Insurance (3 months)
$2,584
$2,944
Prior to opening
Database Management, Point of Sale System, Computer Hardware and Software Fee
$2,584
$2,944
At initial training
Additional Funds (3 months)
$2,584
$2,944
As incurred
TOTAL ESTIMATED INITIAL INVESTMENT:
$2,584
$2,944
$2,584
$2,944
$2,584
$2,944
$2,584
$2,944
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
2020
0
0
0
Franchised
2021
0
0
+2
2022
0
3
+2
2020
4
4
+2
Company Outlets
2021
4
4
0
2022
4
3
-1
2020
4
4
0
2021
4
5
+1
2022
5
6
+1
Total Outlets
-
-
-
-
-
-
-
-
Net Unit Growth (Recent year)
Net Unit Growth (Recent year)
Franchise Health Metrics
Franchise Value
Growth Rate
1 year / 3 years
Failure Rate
1 year / 3 years
Franchise for Sale Rate
1 year / 3 years
0
0
0
0
0
0
0
0
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
Historical financial performance representations
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

*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.