At Uptown Cheapskate, we know our upscale resale clothing franchise spells success for store owners. But we don’t want to just tell aspiring franchisees that—we want to show them!
Three important ingredients have produced favorable returns on investment for Uptown Cheapskate owners: our low cost of ownership, strong profit potential, and bright industry outlook. Take a closer look at the numbers and see for yourself.
Uptown Cheapskate’s investment costs
Given our upscale appearance, many new owners are surprised to learn how affordable it is to launch a new Uptown Cheapskate store. We strive to make our franchise system accessible to veteran and new business owners alike with a modest franchise fee and affordable upfront investment. Interested franchisees must be financially fit, with liquid capital available ($100,000 to $125,000) and net worth of $200,000 (minimum).
The total investment to open a new Uptown Cheapskate store ranges from $346,279 to $544,339. This range is inclusive of a $25,000 franchise fee as well as things like real estate leasing, opening inventory, sales racks, and grand opening promotion. Item 7 in our 2022 Franchise Disclosure Document provides more specific details on the exact costs required to open your franchise location.
Uptown Cheapskate franchisees may be eligible for financing through the SBA or another lender. This makes startup financing even more achievable, since SBA loans can cover up to 80% of your initial investment.
Our franchise earning potential
Once your store is up and running, you’ll see first-hand how high our profit potential truly is! Our business model allows for fast scaling and maximized profitability over the course of your partnership with us. There’s no guarantee on how much you’ll make as an Uptown Cheapskate owner. However, you can influence your success by choosing a strong market, hiring and training a dedicated team of employees, and working hard.
According to Item 19 in our 2022 Franchise Disclosure Document, the average Uptown Cheapskate store in the top 25% of owners saw $1,563,885 in sales. Their average gross profits were $993,716, and their average net income was $372,049. The average store owner in the second quartile saw $1,189,083 in sales and had a net income of $247,326. That means 50% of Uptown Cheapskate stores earned nearly a quarter of a million dollars in average net income–or higher!
One important thing to remember is that Uptown Cheapskate stores are not siloed away from each other. Transparency is a core piece of our culture, which is why we share up-to-the-minute sales information to allow franchisees to compare their store’s performance to others across the country. This isn’t to create competition—it’s to demonstrate each store’s potential, urge owners to keep striving for more success, and foster a sense of encouragement and support throughout the system.
The resale apparel industry is growing
Considering return on investment isn’t just about today’s numbers. You also need to consider what the future looks like for the industry you’re joining. In Uptown Cheapskate’s case, we’re excited for the immense potential that awaits the resale apparel industry. As that market grows, our store owners stand to earn even more money!
ThredUP’s 2022 Resale Report says that the U.S. secondhand market is anticipated to more than double, reaching $82 billion by 2026. The apparel segment of resale is particularly strong and is expected to outpace the growth of traditional retail clothing. Experts predict that resale clothing will grow 16 times faster than the broader clothing sector in the next four years.
Resale franchising, specifically, is also a growing segment. Franchise Times magazine notes that 2021 sales in the retail category for franchising reached $147.9 billion. Uptown Cheapskate has captured a sizable portion of that market. If our 100+ locations weren’t enough, our sales grew 62.6% to $96 million in 2021.
It doesn’t take much calculation to see that Uptown Cheapskate’s low cost of ownership, combined with our high profit potential and industry growth, spells good news for prospective and current franchisees. To learn more about our secondhand clothing franchise opportunity—or to explore the potential return on investment—request more information today.