Uptown Cheapskate FAQ
To help you in your discovery process, we have compiled a list of Frequently Asked Questions below. We encourage you to reach out to our Franchise Development team for more information about Uptown Cheapskate and the path to ownership.
Frequently Asked Questions
I’m interested in becoming a franchisee of Uptown Cheapskate, how do I apply?
Your discovery process starts right here on our website. Once you have submitted your information through our online form, a member of our Franchise Development team will reach out to schedule an introductory call.
Do I need prior retail or business ownership experience?
No. Most of our franchise owners had no prior business ownership experience before joining Uptown. We’re proud of the comprehensive training and support we provide to franchisees with a wide range of backgrounds.
Is there a typical profile for an Uptown franchisee?
Our franchisees come from all walks of life but tend to have a few things in common. They embrace the opportunity to personally manage their store, motivate their team, and build a strong customer experience. They are also highly determined and consistently go above and beyond to achieve their goals. Given the fast-paced environment in our stores, our owners are also typically highly organized and adept at multi-tasking. Finally, our most successful owners are very active members of our franchisee community and enjoy helping others find success.
Do I need to be a hands-on owner?
Yes. Owning and operating an Uptown Cheapskate isn’t a side hustle. If you aren’t ready to work in your store every day for at least a year, owning an Uptown likely isn’t right for you. In general, new franchisees should expect to work long hours – well in excess of a typical 9-5 job.
How much does it typically cost to open an Uptown Cheapskate store?
Based on results from recent Uptown Cheapskate store openings, the total investment for new stores typically falls between $328,002 and $596,502, with a midpoint of $462,252. Store startup costs vary based on a range of factors, including the square footage of the store and the scope of the buildout.
What fees does Uptown Cheapskate charge?
Our initial franchise fee is $25,000. We also charge a $15,000 software installation fee. Throughout the life of your franchise, you will pay a 5% monthly royalty fee, a 0.5% monthly marketing fee, and a $350 monthly technology fee.
Does Uptown offer discounts for veterans?
Yes. We are proud to support our veterans and offer a 20% discount to our franchise fee. Veterans are often natural leaders, which can make them excellent store operators. If you are a veteran, we thank you for your service and would be excited to meet you.
How do I obtain my starting inventory?
After you finish your store’s buildout and complete training, you will open your store to acquire inventory from your surrounding community. We call this phase the “Open to Buy” period. During the Open to Buy period, you will utilize our proprietary product appraisal program Baseline Appraisal and supporting tools to help you accumulate the right mix of merchandise ahead of your Grand Opening.
It typically takes 7-10 weeks to build sufficient inventory. At that point, a store is ready to hold its Grand Opening weekend. Typically, hundreds of people show up during the opening weekend, many of whom were vendors to the store during its Open to Buy period.
How much can I expect to earn as an Uptown franchisee?
As stated in our current Franchise Disclosure Document (FDD), the average Uptown Cheapskate store generates $1.3MM of sales and $188K of net income, while stores in the top quartile generate $1.9MM of sales and $354K of net income. Ultimately, the most important ingredient for success is hard work, although the performance of our existing Uptown Cheapskate franchisees illustrates the power of our business model.
How quickly do stores typically achieve profitability?
While every store ramps up at a different pace, Uptown Cheapskate stores typically become profitable within the first 12-18 months – sometimes sooner. With that said, we condition new franchisees to expect that they will not take a material amount of income out of their business during its first year of operation.
How do franchisees typically fund their investment?
Every situation is unique, although our franchisees typically utilize Small Business Administration (SBA) loans or other debt financing to fund 80% or more of their total project cost. Our in-house finance team will assist you in developing a business plan, guide you through applying for loans, and leverage our banking relationships to support your new venture.
What are the personal financial requirements to open an Uptown store?
We require that franchise candidates have a minimum net worth of $200K, cash available to invest of at least $100K, and no bankruptcy in their financial history. These parameters typically align with SBA requirements and are designed to ensure that you have a solid foundation to launch, build, and grow a strong enterprise.
Is there an opportunity to open multiple stores?
Yes. There are several dozen multi-unit franchisees across the Uptown system. We have territories available across most markets, leaving space for both new and existing franchisees to scale to multiple stores over time.
How big is the secondhand apparel industry?
The secondhand apparel market is both massive ($49BN) and growing rapidly (9% expected annual growth rate through 2029). When you combine these industry tailwinds with the strong underlying financial profile of our stores, we believe there has never been a better time to become an Uptown Cheapskate franchisee.