Plato's Closet Franchise

Plato's Closet, a Winmark Corp franchise, has been franchising since 1999 - 6 years after the concept was founded in 1993 , currently with 500 total locations in the retail sector, headquartered in MN. According to the 2024 FDD, the total initial investment ranges from $250K to $378K - a 51% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $25K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.0% of gross sales. Critically, Plato's Closet does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $800K, meaning the typical unit pays roughly $40K per year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Plato's Closet added units at a 2.0% net rate year-over-year (25 openings, 15 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.