Established Plato's Closet Franchise - Top Ranked Brand - Reduced!

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Asking Price:
$300,000

Gross Revenue:
$900,000
Cash Flow:
 Not Disclosed
EBITDA:
 Not Disclosed
Inventory:
$101,000
included in asking price

FF&E:
$28,000
included in asking price

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Business Description

Since opening in 2008, Plato’s Closet Lyndhurst has developed an enthusiastic and loyal customer base drawn from the east side of Cleveland, Ohio and its suburbs, and has consistently been a top performer among the four Greater Cleveland Plato’s Closet stores. This is a terrific location situated between major upscale shopping malls and big box retail stores with an excellent lease for the area. The social media following is excellent including a VIP Text Club with well over 4,000 members, nearly 4,500 Facebook Likes, and over 1,600 followers on Instagram.

The Lyndhurst market is densely populated with 74,095+ people and 33,723+ households, with an average household income of $81,847 within a 3-mile radius and 176,483+ people and 78,626 households with an average household income of $79,428 within 5 miles (2015 data). There are 73,738 college age students from 2.5 to 7.2 miles of store, 6 public high schools between 1.8 and 10 miles of the store, multiple private schools within 5 miles of the store, and many middle schools.

Plato's Closet was ranked the #1 Retail Franchise Investment in the $150,000 - $500,000 range by Forbes Magazine for the last two years and has been #1 in its category in Entrepreneur's Franchise 500 on an annual basis.

The business and financial model for this brand is unparalleled. As such, the territories in the Ohio market are SOLD OUT which gives the buyer a rare opportunity to acquire an existing business with plenty of upside.

The system average sales for Plato's Closet as a brand is just under $1M with the top quartile (102 stores) averaging $1.4M in gross sales. As the established leader in the teen resale-retail space, Plato's Closet offers gently used brand name apparel and accessories to both girls and guys at a fraction of the retail cost.

About the Business

Location:
Lyndhurst, Ohio
Year Established:
2008
Franchise:
Yes
Real Estate:
Leased
Building Sq. Ft.:
4,800
Rent:
$7,823.00 Per Month
Lease Expiration:
9/1/2022
Facilities:
Just over 4,800 total sq. ft. with approximately 4,400 sq. ft. of selling space. There are 4 registers, 8 fitting rooms, an employee bathroom and break room with a kitchenette, an office, a customer bathroom and plenty of on-site storage, which includes a Mobile Mini right out the back door. The lease includes a prime location on the monument signage at the entrance to the plaza. The HVAC system was replaced with the most energy efficient model in 2012 as were the lights, which are all LED.

The store is conveniently located in The Greens of Lyndhurst plaza, an upscale family friendly plaza with a lot of neighborhood amenities. This is on a major 5 lane retail trade route from Cleveland going east through the major suburbs - South Euclid, Lyndhurst, Mayfield Heights, Gates Mills, Chesterland and beyond, and serves well established communities north and south of it including Cleveland Heights, Shaker Heights, Beachwood, Hunting Valley, Chagrin Falls, Richmond Heights and Highland Heights. It is also conveniently located between two highway exchanges off of I-271 so we get traffic from quite a distance because they can get to us quickly on the highway. One of the exits serves the largest upscale malls in the area, Beachwood Place and Legacy Village, which are just a six-minute drive from the store. The other exit ramp comes out on major retail destinations, Golden Gate and East Gate, with Marshall’s, Target, Toys R Us, Microcenter, Costco and other big box stores. Between the two exits Mayfield Road is completely commercial.

The shopping plaza has good co-tenancy in place. There is a Sam Ash music store, which attracts a lot of teen and twenty-somethings, Applebee’s, a Mexican restaurant and much more. The center provides a large, well-lit parking lot with beautiful and well-maintained landscaping, has current music playing outside for a cheery mood, and is decorated throughout the holidays.
Website:
www.platosclosetlyndhurst.com
Market Outlook/
Competition:
There are four Plato’s Closet territories in the Greater Cleveland area, the closest to us is in Mentor, about 20 minutes away on the highway. Another resale shop that caters more to an eclectic crowd is located 20 minutes west of us. Within ten minutes of the store there are some non-profit resale shops, but they pose no competition for Plato's Closet.
Growth & Expansion:
The most immediate impact to increasing sales is having a local owner with a full-time presence, and a hands-on management approach including close controls of inventory. Frequent and consistent training/coaching will drive higher staff performance which will continue to improve the customer experience and increase sales. The store already has strong average sales per transaction indicating a solid foundation on which to build by attracting more customers.

Opportunities for growing the customer base exist in marketing and local store promotion. An increase in the level of social media activity and digital marketing combined with local store marketing to middle schools, high schools, colleges and participation in community events will all drive new customers and increase top line sales.
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About the Sale

Reason For Selling:
Retirement
Training/Support:
Training required and provided by franchisor after purchase of store is completed. On-going franchisor support includes advertising, marketing, merchandising, inventory and financial management. Additional training and education opportunities available at the annual franchisee conference, trade show and regional meetings. In store support is provided through Field Operations Managers bi-yearly visits. Additional visits are possible if requested. Franchisor may require an additional investment in working capital and brand standard upgrades.

Listing Info

ID:
1335276
Ad Detail Views:
1413

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Business Listed by

Cat Eckstaedt

Winmark Corporation
License# 1

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