Best Clothing Franchise Opportunities for 2024
The clothing industry includes the men’s, women’s, and children’s fashion sectors, and ranges from affordable to luxury brands. As clothing becomes cheaper to manufacture, consumers are able to buy more of it, accelerating the cycle of buying new clothing on a seasonal basis rather than investing in a few staple pieces. The trajectory of the clothing industry is heavily reliant on what is trending at the time — currently, the prevalence of casual clothing and “athleisure” has led some brands who primarily advertised formal wear to shift their model. In this article, we will discuss the different trends in the retail products and services industry and the trends in the clothing industry. In addition, we will talk about the 5 best clothing franchise opportunities for 2023.
Retail Products and Services Industry Trends
The landscape of the retail industry has changed dramatically over the past decade, with the decline of brick-and-mortar establishments and the rise of e-commerce and online shopping. The closure of major department stores has only accelerated this major transformation of the retail industry, which has increased even more with the shutdown brought on by the COVID-19 pandemic. Operators in this industry will have to revamp their business model in order to attract a steady stream of customers, therefore competing with the convenience of online models.
Clothing Industry Trends
In response to the controversy of fast fashion in recent years, the trend of sustainable fashion and buying clothes second-hand has recently emerged. “Thrifting”, or buying clothing from consignment shops has been popularized by social media influences. Some brands have sought to revamp their image by promoting or incorporating social issues into their marketing, prominent examples including American Eagle Outfitters. Others have taken on the approach of being more inclusive, capitalizing on promoting models of all different body types. Like many other subsets of the retail industry, e-commerce has had a transformative impact, and many new forces in the industry have primarily relied on online platforms to launch their brand. The few established brands that have retained a presence in brick-and-mortar stores still rely on online shopping platforms to generate revenue.
Key Retail Franchise Industry Numbers
Average Retail Franchise Royalty Fee | 5.7% |
Average Retail Franchise Marketing Fee | 2.5% |
Average Retail Franchise Initial Investment | $271K |
SBA Loan Paid-in-Full Rate | 27.5% |
SBA Loan Charged Off Rate | 2.9% |
SBA Loan Success Ratio | 9:1 |
Best Clothing Franchise Opportunities in 2023
Uptown Cheapskate
Total U.S. Locations | 112 |
Net Unit Growth (3 years) | 32 |
Initial Investment | $377K-$611K |
Royalty Fees | 5% |
Estimated Profits | Click here |
Estimated Resale Value | Click here |
Uptown Cheapskate is a clothing franchise that started in 2008 by working in the clothing resale industry. They provide fashionable brands and clothes gently used for low prices. Also, they are growing tremendously in terms of branches (112 branches all over the US), customers, and profits. Also, they pay cash for gently used clothes and provide new clothes as well.
Once Upon a Child
Total U.S. Locations | 406 |
Net Unit Growth (3 years) | 11 |
Initial Investment | $277K-$418K |
Royalty Fees | 5% |
Estimated Profits | Click here |
Estimated Resale Value | Click here |
Once Upon a Child is a clothing franchise based on buying and selling gently used brands of kids’ clothes. They offer solutions for families to buy for their kids fashionable clothes with competitive prices. As a franchisee, Once Upon a Child offers you ongoing training and operational assistance, so your clothing franchise can succeed.
Plato's Closet
Total U.S. Locations | 461 |
Net Unit Growth (3 years) | 9 |
Initial Investment | $281K-$410K |
Royalty Fees | 5% |
Estimated Profits | Click here |
Estimated Resale Value | Click here |
Plato’s Closet is a clothing franchise based on buying and selling gently used brands of clothes. For its affordable prices, it became one of the most profitable clothing franchises that sells high-quality clothes to teens and young adults. Also, they offer training and support for their franchisees to help them succeed.
Kid to Kid
Total U.S. Locations | 91 |
Net Unit Growth (3 years) | 0 |
Initial Investment | $360K-$595K |
Royalty Fees | 5% |
Estimated Profits | Click here |
Estimated Resale Value | Click here |
Kid to Kid is one of the best clothing franchise opportunities that helps families save money and buy their kids the best clothes at affordable prices. This clothing franchise started in 1992 and succeeded in opening 91 locations in the US only. Kid to Kid offers training, assistance, and marketing as well.
This business model works by buying and selling gently used kid's clothes.
Mainstream Boutique
Total U.S. Locations | 76 |
Net Unit Growth (3 years) | 0 |
Initial Investment | $161K-$310K |
Royalty Fees | 8% |
Estimated Profits | Click here |
Estimated Resale Value | Click here |
Mainstream Boutique’s mission is to provide trendy clothes for all women of all ages at decent prices. Mainstream Boutique succeeded in opening franchise clothing stores in 24 states around the US. As a franchisee, you will be offered training and marketing.
Conclusion
In conclusion, there are different trends that are ongoing in the retail products and services industry and in the clothing industry. You should always consider the market trends before you start your own clothing franchise. In this article, we also discussed different clothing franchise opportunities that you should take into consideration as you make your investment decision.
