Established
2003
Franchise Units
5
Minimum Investment
$150,000
Franchise Fee
$35,000
Total Investment Range
$300,000
Home Based
No
Description
The Closet Trading Company is redefining the resale retail space by blending sustainability, style, and smart entrepreneurship into a modern secondhand fashion concept. Built around the fast-growing recommerce and circular fashion movement, the brand focuses on buying and selling gently used, on-trend clothing and accessories while delivering a boutique-style shopping experience.
Unlike traditional thrift stores, The Closet Trading Company positions itself as a curated resale destination. Inventory is carefully selected, quality-checked, and merchandised to appeal to value-conscious yet fashion-forward consumers. This approach allows franchise owners to attract repeat customers who appreciate affordable pricing without compromising on style or presentation.
In the U.S. market, where sustainability, conscious consumption, and resale fashion are no longer niche trends but mainstream behaviors, The Closet Trading Company holds a strong competitive position. Its community-driven model, approachable price points, and constantly refreshed inventory make each location dynamic and locally relevant—while still benefiting from a recognizable brand identity.
Why Invest in This Franchise?
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Booming Resale Market – The U.S. resale apparel market continues to grow faster than traditional retail, driven by sustainability awareness and value-driven purchasing habits.
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Recession-Resilient Model – Secondhand retail often performs well during economic slowdowns as consumers seek affordability without sacrificing quality.
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Curated Retail Experience – A boutique-style layout differentiates the brand from thrift stores, supporting stronger margins and repeat visits.
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Diverse Revenue Streams – Income is generated through resale inventory, trade-ins, seasonal promotions, and special events.
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Community Engagement – Local buying and selling create built-in customer loyalty and consistent foot traffic.
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Scalable Operations – Systems, processes, and training are designed to support both single-unit and multi-unit franchise growth.
Background
- Established Year: 2003
- Founders: Founded by experienced retail entrepreneurs with backgrounds in fashion resale and specialty retail
- Brand Journey & History:
- The Closet Trading Company was created to modernize the resale experience by combining fashion trends, organized merchandising, and transparent trade-in practices. What began as a single location quickly gained traction due to strong customer demand and consistent inventory turnover.
- Ownership Structure: Privately held, franchisor-led organization
- Market Presence in the USA: Multiple franchise and corporate locations across key U.S. markets, with expansion opportunities in suburban and mid-sized metro areas
- Industry Category: Resale retail, sustainable fashion, specialty apparel
- Franchise Active Units:5
The brand’s steady growth reflects increasing consumer acceptance of resale fashion as a smart, stylish, and environmentally responsible choice.
Support Training
The Closet Trading Company provides comprehensive support designed to help franchisees launch, operate, and scale successfully.
Pre-Launch Support
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Site selection guidance and demographic analysis
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Store layout, design standards, and merchandising plans
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Inventory intake systems and pricing frameworks
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Pre-opening planning and launch coordination
Training Programs
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Initial training covering operations, inventory evaluation, pricing strategies, and customer experience
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Buying and trade-in assessment training to ensure consistent quality
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Hiring, onboarding, and staff management guidance
Operational Support
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Standard operating procedures for daily store management
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Inventory rotation and markdown strategies
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Ongoing coaching and performance optimization
Marketing & Brand Support
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Grand opening marketing playbooks
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Local advertising and digital marketing guidance
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Social media strategies and seasonal promotions
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Brand-approved creative assets and messaging
Ongoing Support
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Dedicated franchise support team
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Continuing education and system updates
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Network-wide best-practice sharing
Ideal Candidate
This franchise is ideal for owner-operators or semi-absentee investors who enjoy retail, community engagement, and sustainability-focused businesses.
Best-Suited Candidates Include:
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Individuals with retail, fashion, hospitality, or customer service experience (preferred, not mandatory)
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Strong leadership, organizational, and people-management skills
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Passion for resale, sustainability, and customer experience
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Willingness to be hands-on, especially during the initial launch phase
Investment & Location Preferences:
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Comfortable with a mid-range retail investment
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Interested in suburban shopping centers, lifestyle plazas, or high-foot-traffic areas
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Open to single-unit ownership with long-term multi-unit expansion potential
Financial Detail
| Cost Component | Estimated Amount (USD) |
|---|---|
| Franchise Fee | $35,000 |
| Total Initial Investment | $150,000 – $300,000 |
| Minimum Investment Required | $150,000 |
| Store Build-Out & Infrastructure | $50,000 – $120,000 |
| Initial Inventory & Supplies | $25,000 – $60,000 |
| Equipment & POS Systems | $10,000 – $20,000 |
| Marketing & Grand Opening | $10,000 – $20,000 |
| Working Capital (3–6 Months) | $20,000 – $40,000 |
| Ongoing Royalty Fee | Percentage of Gross Sales |
| Advertising / Brand Fund | As per franchise agreement |
| Estimated Break-Even Period | 18 – 30 Months |
| Expected ROI | Competitive, location-dependent |
