Is Plato's Closet right for you?
Proven Scale
526 franchised stores in operation as of year-end 2025 with net unit growth each of the past three years.
the financial-performance disclosure Disclosure
492 stores reported average annual gross sales of $1,307,875 and average gross profit margin of 63.7 percent for the 12 months ended December 2025.
Low Continuing Fees
5 percent royalty plus combined advertising and marketing obligation of 6 percent of gross sales.
About Plato's Closet
Plato's Closet is a retail franchise concept founded in 1988 and operated by Winmark Corporation of Minneapolis, Minnesota. The brand operates a chain of 526 franchised stores across the United States that buy and sell gently used and new brand-name clothing, shoes and accessories targeted at teens and young adults. Plato's Closet is one of five complementary resale concepts franchised by Winmark alongside Play It Again Sports, Once Upon A Child, Music Go Round and Style Encore.
Franchisees operate buy-sell-trade stores of 3,500 to 4,500 square feet in which they purchase inventory directly from the public and resell it at a discount to the target demographic. The model relies on high inventory turnover, strict quality standards and a computerized point-of-sale system supplied by Winmark. Store operations center on appraisal, buying, merchandising, sales and community marketing within an exclusive territory typically defined by a 3-to-5-mile radius and minimum population of 50,000.
The business model
How a Plato's Closet territory actually makes money at the unit level.
Initial Investment
Total estimated initial investment ranges from $355,700 to $467,900 including franchise fee, build-out, POS system, opening inventory and three months of working capital.
Revenue Streams
Franchisees generate revenue from retail sales of consigned and purchased apparel and accessories. Gross profit is driven by the spread between buy and sell prices on gently used name-brand merchandise.
Ongoing Fees
Royalty is 5 percent of gross sales. National advertising fund contribution is 2 percent of gross sales (increasing to a possible 3 percent from July 2026). Local cooperative advertising brings the total marketing obligation to 6 percent of gross sales. Monthly technology fee is currently $295.
Territory Rights
Each franchisee receives an exclusive territory based on population density, household income and traffic patterns. Winmark will not open another Plato's Closet location inside the protected area.
Supply Chain
Franchisees must purchase the POS system and proprietary software from Winmark and source signs, fixtures and certain marketing services from approved suppliers. Inventory sourcing is largely discretionary provided quality standards are met.
Renewal and Transfer
Renewal fee is $10,000. Transfer fee is $10,000. Remodeling to current standards is required no more frequently than once every five years.
Quick facts
Initial franchise fee
$25,000
Total investment range
$355,700 to $467,900
Royalty
5.00% of gross revenue
Marketing fund
6.00% of gross revenue
Founded
1988
Headquarters
Minneapolis, MN
Active US franchisees
n/a
Total US units
n/a
Training & support
What the franchisor + parent platform provide. And what they don't.
What's provided
- +Mandatory initial training program conducted at the franchisee's location totaling 40 hours.
- +One to two days of pre-opening assistance delivered three to five weeks before opening.
- +On-site assistance the day before and the day of store opening.
- +Periodic field consultant visits with written evaluations and recommendations.
- +Access to an extranet containing business system updates and marketing materials.
- +Ongoing advisory services available upon request.
Honest disclosure: what's NOT provided
Winmark is not required to provide any assistance except as expressly listed in Item 11 of the publicly filed disclosures.
Multi-unit growth path
Multi-unit ownership is permitted but not required. As of 2025, the majority of operators run single units. Development of additional stores follows the same site-selection, build-out and training process. Incremental units benefit from established operating knowledge yet require separate franchise agreements and full initial investment for each location. Winmark does not offer formal multi-unit development incentives or reduced fees.
Capital + financing paths
Most operators use one of these four paths to fund the initial investment.
SBA 7(a) Loans
Many franchisees utilize SBA-guaranteed loans to cover a significant portion of the initial investment. Winmark does not finance any part of the investment.
Traditional Bank Financing
Local and regional banks may finance equipment, leasehold improvements and working capital when the borrower presents a strong personal credit and liquidity profile.
Home Equity or Retirement Funds
Some owners use home-equity lines of credit or self-directed IRA rollovers to meet equity requirements for the $355,700 to $467,900 investment range.
Seller Financing on Existing Stores
When purchasing an existing Plato's Closet location, the seller may carry a portion of the purchase price, subject to Winmark approval.
Process timeline: inquiry → grand opening
Typical 12-16 week path from first call to launching your first customer route.
Validation
Review the filed disclosures, speak with existing franchisees, visit stores and confirm market fit.
Franchise Agreement
Sign franchise agreement and pay the $25,000 initial franchise fee.
Site Selection
Secure location within the approved exclusive territory meeting Winmark criteria.
Build-out & Setup
Complete leasehold improvements, install fixtures, signage and POS system.
Training & Inventory
Attend mandatory training, purchase opening inventory and prepare store for launch.
Grand Opening
Receive on-site support for opening days and begin operations.
Ongoing Operations
Implement buying, merchandising and marketing programs with periodic field support.
Match assessment
Are you a Plato's Closet match?
12 questions. Math-first. No high-pressure sales call afterwards. Just your match assessment and the reasoning behind it.
Start nowCommon questions
How much does a Plato's Closet franchise cost?
The estimated initial investment ranges from $355,700 to $467,900 according to the investment disclosure of the the filed disclosures. This includes the $25,000 franchise fee, build-out, POS system, opening inventory and three months of working capital.
What is the royalty fee for Plato's Closet?
The continuing royalty is 5 percent of gross sales. Combined national and local advertising and marketing contributions total 6 percent of gross sales.
Does Plato's Closet provide financial performance representations?
Yes. the financial-performance disclosure discloses average annual gross sales of $1,307,875 and average gross profit of 63.7 percent for 492 stores open at least 12 months under the same ownership for the 12-month period ended December 2025. Gross profit does not include operating expenses.
How many Plato's Closet locations are there?
There were 526 franchised units in operation at the end of 2025. All stores are franchised; Winmark operates no company-owned Plato's Closet stores.
What is the typical size of a Plato's Closet store?
Stores are typically 3,500 to 4,500 square feet. Investment costs increase with larger square footage.
Does Plato's Closet offer exclusive territories?
Yes. Each franchisee receives an exclusive territory defined by population density, household income and traffic patterns, typically a 3-to-5-mile radius with a minimum population of 50,000.
How long is the initial training program?
The mandatory initial training program totals 40 hours and is conducted at the franchisee's location. Additional pre-opening and opening-day support is provided on-site.
Can I own multiple Plato's Closet stores?
Yes. Multi-unit ownership is allowed but not required. Each additional unit requires a separate franchise agreement and the full initial investment.
Does Winmark finance the franchise?
No. Winmark does not provide direct financing. Franchisees typically arrange third-party financing through SBA loans, banks or personal equity sources.
How does Plato's Closet compare to other resale franchises?
Plato's Closet focuses exclusively on the teen and young-adult demographic within the Winmark family of resale brands. It shares operational systems, POS platform and supplier relationships with Once Upon A Child and Style Encore but maintains distinct branding and inventory standards.
What ongoing support does Plato's Closet provide?
Support includes periodic field consultant visits, access to an extranet with manuals and marketing materials, advertising fund administration and advisory services upon request.
Are there any restrictions on sourcing inventory?
Franchisees may purchase inventory from any supplier that meets Winmark quality standards. The POS system, proprietary software, signs and certain marketing services must be obtained from Winmark or approved suppliers.
Brand logos displayed for identification purposes only. Hot N Fresh is not affiliated with the brands listed unless explicitly stated.