The Closet Trading Company - Franchise
Quick Summary
Founded in 2003, The Closet Trading Company™ is an unparalleled resale experience, offering a curated selection of designer and luxury labels. The ecosystem in which our model thrives creates a brand sentiment that enforces sustainability within the local community. We become an essential part of our customers shopping habits & buying cycle.
*Please contact "The Closet Trading Company" to confirm the accuracy of any information provided on this page.
The Closet Trading Company
Business Cost, Fees & Facts for 2025
Minimum Cash Required | $100,000 |
Available In These States:
- AK
- AL
- AR
- AZ
- CO
- CT
- DC
- DE
- FL
- GA
- HI
- IA
- ID
- IL
- IN
- KS
- KY
- LA
- MA
- MD
- ME
- MI
- MN
- MO
- MS
- MT
- NC
- ND
- NE
- NH
- NJ
- NM
- NV
- OH
- OK
- OR
- PA
- RI
- SC
- SD
- TN
- TX
- UT
- VA
- VT
- WA
- WI
- WV
- WY
- Overview
The Closet Trading Company - Franchise
WHY CHOOSE THE CLOSET TRADING COMPANY™?
BETTER THAN CASH
The Closet Trading Co. works primarily on consignment, which means franchisees pay for their inventory after they sell it! Most other resale outlets work mainly on a cash basis, which means they pay upfront for their inventory and then they try to sell it. Consignment creates a cash flow benefit that is a game-changer for our franchisees. And they are not stuck carrying the cost of unsold inventory.
WHAT COMPETITION?
Our stores do not compete with one another in the way that standard retail stores do, because each store carries a unique inventory. Upon opening a new store only 10 miles away from our existing store, we found that the proximity actually helped both stores thrive. Customers now continue to regularly check out the new inventory in both stores and consequently, the distance between stores can be shorter than with other retail concepts.
RECESSION-RESISTANT BUSINESS
We are a recession-resistant business and flourish in economic downturns. We opened two stores during the last recession, and observed a new dynamic to the rationale in the market. We found that customers are more open to selling some of their luxury goods when times are lean, and that more women grew open to the idea of shopping used, so it is a win-win. As other retailers shuttered, we also benefited from the higher overall vacancy and lower lease rates.
STARTUP INVENTORY
We provide our franchisees with the tools, training and advice they need to curate the majority of their starting inventory. We'll even provide inventory from our existing stock, if needed, to ensure a well-stocked grand opening! This saves our franchisees time and money! No need for the franchisee to be out-of-pocket for months paying rent, payroll and other expenses while they are trying to build their inventory. They can start selling and generating revenue as soon as they open their doors.
PERSONALIZED SERVICE
Outstanding customer service is second to none at The Closet Trading Company™! We prioritize a FUN and engaging customer experience that results in customers becoming loyal, regular clients. They key ingredient is our staff of professionally trained stylists who offer complimentary one-on-one styling tips to help nurture customer relationships and increase loyalty. Our focus on "wow-ing" the customer increases the frequency of store visits. Customers come in more frequently to see the new inventory, and to visit their favorite stylist!
FLEXIBILITY
As an emerging franchise company with an entrepreneurial spirit, our team prides itself on its flexibility in collaborating with our franchisees. We welcome feedback and ideas from them and actively seek input to find creative solutions that can result in cost savings or increased revenues for our franchisees!
SCALABILITY
The initial franchise fee for one TCTC franchise is $40,000. Qualified individuals can purchase additional franchises at a reduced initial franchise fee through an Area Development agreement.
OWNERSHIP OPTIONS
Franchisees can choose to run the business full-time, or be semi-absentee. With the semi-absentee option, the franchisee will hire a full-time store manager who will be required to attend our initial training program along with the franchisee.
REVENUE STREAMS
The Closet Trading Company™ business model presently includes three revenues streams: consignment sales, resale sales and wholesale sales. Our future plans call for adding Consignment Concierge services, Authentication Services and Studio Services.
MARKETING
The Closet Trading Company™ has developed a comprehensive integrated marketing program that includes: digital marketing, print media, social media and a robust organic campaign to assist our franchisees in gaining a solid, repeat customer base to become a leader in their markets.
SUSTAINABILITY
Our business model creates a natural buying cycle that reduces the environmental impact of the retail clothing industry. This inspires a greater sense of responsibility in local communities and the impact we have on this planet.
HOLLYWOOD AFFECT
Our close proximity to the movie industry gives us great access to the closets of celebrities, Hollywood elite, and movie studios. The benefit of these show stopping ensembles can be passed along to our franchisees by providing them access to this exclusive inventory.
OUR IDEAL FRANCHISEE
As a franchisee you are expected to be a motivated, friendly, driven, ambitious, and ethical individual that possesses:
- Business and/or retail management experience
- Entrepreneurial outlook and sales oriented mindset
- Willingness for cooperation and communication
- Ability to generate growth through hands-on business/marketing activities
- Embrace and contribute to the ethos/sentiment of the brand that is The Closet Trading Company™
There are hundreds of reasons to franchise, and hundreds of franchise opportunities out there. We want to be sure you are doing it for the right reasons, and have the emotional intelligence to accompany your abilities. As in, you have an affinity for hard work, but your ability to develop deeper connections with your employees and customers will create an unrivaled loyalty and trust that have the potential to make you more successful.
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