TCTC Franchise FAQs
Why should I invest in a resale boutique as opposed to a traditional retail boutique?
Resale has grown 21x faster than the retail apparel market over the last 5 years with 70% of consumers saying they plan to spend more on secondhand clothing in the next 5 years. Consumers everywhere are prioritizing value and accelerating the shift to secondhand, a trend that TCTC is perfectly positioned to capitalize on. Being a part of a sustainable business not only carries with it a pride of ownership, but also offers a unique set of marketing and PR opportunities.
What makes TCTC different from the competition?
There are a few things that make TCTC stand out from other resale franchises
- Lifestyle. Our contemporary designer inventory is showcased in artfully designed boutiques–no plastic hangers here! Discerning consumers buy with their eyes first, and our elegant, refined boutiques encourage clients to both buy & sell their premium inventory. You’re going to feel proud of the beautiful space you own & the amazing selection of clothing & accessories we help you curate.
- Inventory support. TCTC is committed to helping you get off the ground as quickly as possible, with as little investment & headache as possible. Inventory acquisition is one of the costliest & most time-consuming tasks prior to opening a boutique. Having the significant advantage of access to premium out-of-market goods from HQ, with no up-front costs, will be especially useful in shortening the ramp-up phase for new boutiques, as well as freeing up cash for store renovations and other start-up expenses
- Unique hybrid model- our concept is a hybrid of resale and consignment. Since 85% of our inventory is on consignment, we do not pay for a product until that product has sold. When cash is not tied up in piles of unsold stock, the result is a lean business model that has the liquid assets to capitalize on growth opportunities as they arise.
- E-Commerce- Most resale or retail franchises do not have an e-commerce component. Our E-commerce platform gives franchisees the ability to sell to TCTC clients throughout the country, well outside of their market, by marketing the webshop to our extensive customer database.
How do I get started?
Simply fill out a request for information here: https://www.tctcfranchise.com/request-franchise-info/
How much does it cost to open a TCTC franchise?
There are many variables (location, size of boutique, etc;) to consider that can affect the cost of opening a boutique but the investment to open a new store starts at $142,000 for the first-time franchisee which includes the Franchise Fee of $40,000. Ongoing Royalty Fees are 5% of gross revenue. The Technology fee and the Advertising Fee are each 1% of gross revenue.
Can I get help with financing?
Most franchise candidates find they can fund their business by accessing capital they already have available through the equity in their home or by accessing qualifying retirement plans such as a 401k without incurring penalties or experiencing tax consequences. Financing options may also include third-party (friends, family, existing business partners), SBA loans or commercial bank loans. If you’re planning to obtain financing through a bank, they will require you to provide up to 30% of the investment from your own resources. While TCTC does not provide in-house financing, we can refer you to one of our preferred lender partners.
What are the steps to becoming a franchisee?
- Intro Call: We’ll take a moment to get to know you and why TCTC might be a great fit for your goals
- Brand Tour: Get to know The Closet Trading Company franchise opportunity with our Franchise Development Manager
- FDD Review: You will receive a copy of our Franchise Disclosure Document, then we will have a call to review any questions that you may have
- Executive Call: Meet with our founder and CEO, Johanna Zlenko, where you will get to know her and understand the TCTC culture
- Validation: Get to know our current franchisees and long-time staff
- Discovery Day – Los Angeles, CA: Visit some of our California locations and meet the TCTC team in person, or virtually if needed
- Franchise Agreement: After your Discovery Day, our team will discuss and potentially approve you to be a franchisee with The Closet Trading Company! Once the agreement is signed, we’re ready to welcome you to the TCTC family and get a move on training!
What kind of support & continuing education will I receive?
We believe extensive support & comprehensive training is pivotal for your success as a TCTC Franchise Owner so along with your initial 2-week intensive training, you will experience comprehensive & ongoing sales training, monthly calls & expert guidance throughout the pre-opening operations, Grand Opening & into maintenance or even scalability! You’ll also be introduced to our multi-channel sales process to drive sales from the start!
What Return on Investment can I expect?
Actual results vary from location to location, but we do post annual sales for all locations in Item 19 of our Franchise Disclosure Document (Provided to you as you enter our approval process). Our goal is to offer full transparency so that you have all the information that you need to make an educated decision.
What do you look for in a franchisee?
Owning an upscale, fashion-forward consignment franchise might sound like a pipe dream, but we can help make your entrepreneurial dreams come true. At TCTC, we’re looking for driven franchise owners who are ready to learn new skills and take the next step in their careers. Even if your prior business experience is limited, you should have a driving interest in learning more about the thriving sustainable fashion industry, the ability to forge connections with your community, and have the ability and willingness to cooperate and communicate. Above all else, it’s important to have a strong entrepreneurial spirit with the drive to grow your business through hands-on business activities & marketing.
It’s also important to remember: you won’t be in it alone. A TCTC resale boutique franchise offers you a proven business model in a growing industry, built-in brand awareness, and an infrastructure of training and support that is an attractive draw for many trapped in a corporate career. We fully understand that the process can be daunting, so we try to make taking advantage of our franchise opportunity as uncomplicated as possible.
What is the term of the Franchise Agreement?
10 year term with an additional 10 year renewal period.
Can I keep my job or do I need to work in the store full time?
As a new store owner, you have options. In most instances we do recommend you have a strong managerial presence in the store for at least the first 3-6 months. However, you can choose to manage the store yourself, or you can hire a full-time store manager to handle day-to-day operations. In either case, you will need to build a team of 4-6 individuals, and we will train you on the characteristics and qualifications of the ideal employee so you know what to look for.
What is the typical size of a TCTC boutique?
With the added value of e-commerce we are able to scale the TCTC footprint down to only 1000 square feet, reducing build-out and real estate costs. However, the ideal size is somewhere between 1000-1400 square feet based on location and the lifestyle of the owner.
Can I own multiple locations?
Absolutely! Our model is proven in a variety of settings: from downtown tourist destinations to shopping malls to small neighborhood centers. Additionally, we found that after opening a new location within 10 miles of an existing location both units thrived as customers from each would visit the other in search of unique inventory. We offer a discounted franchise fee for multi-unit owners.
How long will it take to open my store after securing the location?
In most cases it is reasonable to expect to open a store within 4 months of securing a lease. Depending on a variety of factors including, location, scale of build out, local permitting processes, etc; it could take up to 9 months.
Do you assist with finding the right location?
Our dedicated staff will help you in the site selection & lease negotiation to find the ideal site for your TCTC boutique.
Do I have to do the planning & build out all by myself?
We’ll guide you through the entire build-out process from approved layout and general construction, to interior design, music and technology.
Can I speak with existing franchisees?
Absolutely! We think speaking with franchisees in various stages of development is a crucial step in determining if TCTC is the right fit for you. To respect our franchisees’ time, communication is reserved for prospective franchisees who have completed our application process and spoken with a member of the executive team. When that is completed, they can speak to any TCTC franchise owner who is available. We also recommend speaking with staff in our corporate locations to get a feel for the day-to-day life of a TCTC operator.
How is merchandise acquired for the store?
Franchisees will be expected to use the marketing strategies that we provide to cultivate a consignor base in their local market. You can acquire inventory through cash purchasing, trade credit, or through consignment which means you pay the customer for the item after the item sells. In addition to sourcing inventory from your local market, TCTC will help supplement your inventory for up to 18 months.
When will I start making money?
You can potentially start making money before you even open your doors! With our e-commerce platform, you can begin submitting inventory to be featured as soon as you receive it.
INTERESTED IN FRANCHISING?
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