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CLOTHES MENTOR: Just One Franchise Article

Clothes Mentor was recently the subject of an article written by AmericasBestFranchises.com, a website that highlights different franchise opportunities around the country. The article takes a look at profit margins in the retail clothing industry, and compares standard clothing franchises to the Clothes Mentor resale clothing franchise. What they found was a franchise that had changed the profit margin numbers to give a bigger return for the investment.

The article also focuses on Clothes Mentor’s Cash on the Spot program. Unlike normal consignment shops, customers are paid cash in hand for their items when they bring them in, not when they sell. This simplified process provides instant gratification to the customers looking to sell their clothing. This is but one of the many factors that makes Clothes Mentor such a fantastic franchise opportunity.

The full article is sourced below, and the original can be found on the America’s Best Franchise Blog – Just One Franchise: Clothes Mentor.

 

Just One Franchise: Clothes Mentor

In 2011, Forbes took a close look at net profit margins in various retail industries to find out just how well businesses were doing. Despite gains, pretax net profit margins were hovering at just around 5% for clothing retail stores and luxury goods were at just under 6%. If you’re looking into a business, these might seem like completely dismal numbers. One franchise system, Clothes Mentor, is looking to change the profit margins game to make their franchises more profitable.

Most clothing retailers have gross profit margins of 30-40% on individual items of clothing which involve complex processes of appropriate price predictions and markdowns until all the stock is sold. Clothes Mentor, however, wants to help franchisees gain gross profit margins in the 60% range—that’s 20% more than the highest profit margins for ordinary clothing retailers. Clothes Mentor is a resale shop, so they have a completely different situation from your average local clothing store. Clothing stores are earning net profits of around 5%, but Clothes Mentor franchisees can earn 25% net profits through the Clothes Mentor franchise system. The only other industry that comes close to that amount of profitability is oil and gas at 24.1%.

The system is based on like-new and gently used clothing that can be sold at lower than retail price to customers. Clothes Mentor specializes in women’s fashions for all sizes, from 0 on up, and has a wide appeal to women looking to save money on the latest hot fashions. While it might seem farfetched that franchisees can make such high profit margins, Clothes Mentor franchisees have already achieved this goal.

Clothes Mentor is not a consignment shop. Consignment shops typically have much lower margins. While they represent less risk for owners, they also have lower profit and more headaches.

Customers can sell name-brand clothing to Clothes Mentor locations on the spot for cash anytime when the store is open. Selling customers can even then turn around and take that money to buy clothing in franchisee’s stores. Because Clothing Mentor’s stock changes rapidly between visits, there’s always something new and that keeps customers coming back, especially those who want to score a good bargain on lower than retail priced brand clothing.

The unique POS system helps franchisees manage their business to find the best profits and to price clothing correctly to sell immediately, instead of having to go through a series of markdowns. The buyback system also has integrated technology to keep Clothes Mentor’s locations stocked at the right price with the latest fashions in women’s clothing to capture sales in the moment. Instead of having to predict trends months in advance like other clothing retailers, Clothes Mentor can respond to trends immediately.

On top of a business model made for profitability, Clothes Mentor franchisees receive support and training from the corporate team that makes Clothes Mentor a full-service and support franchise. After signing contracts, Clothes Mentor franchisees go through extensive retail training with the goal of running a profitable franchise.

Ronald G. Olson

President

Ron Olson has been President and a Director of NTY Franchise Company since October 2006. Ron’s background included starting his career at Dayton’s Department Store, where he held many management positions. In 1977 he opened his own furniture store in Minnesota, which was a Drexel Heritage prototype store. In 1988 he co-founded Grow Biz International, now called Winmark. The first franchise rights that Olson purchased and started marketing was Play It Again Sports. Olson continued buying the Franchise rights for Once Upon A Child, Plato’s Closet, and Music Go Round. Today there over 1,000 Franchise locations.

Under NTY Franchise Company, the franchise rights were bought for Clothes Mentor and New Uses. In 2013 Olson bought Laptop Exchange and changed the name to Device Pitstop. In 2014 the company opened NTY Clothing Exchange and NTY Kids, now Children’s Orchard. There are currently 204 stores sold and 133 stores opened under the NTY Franchise umbrella.

Chad Olson

Chief Operations Officer

Chad Olson has been Chief Operations Officer of NTY Franchise Company since January 2007. From May 1994 to December 2006, he held various positions for Winmark Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for the Once Upon a Child concept from 1999 to 2002, and Regional Operations Manager for the Plato’s Closet concept from 2002 to 2006.

Sarah Primmer

Vice President of Finance & Human Resources

Sarah Primmer is the Vice President of Finance and Human Resources for NTY Franchise Company. She joined the company in January 2014. Prior to joining NTY, Sarah spent over 25 years as the controller and business manager of a local sales and marketing firm calling on Target stores.

Michael D. Smith

Vice President of Strategic Planning

Michael D. Smith has held numerous roles with NTY Franchise since 2010. He is currently the Vice President of Franchise Development and Strategic Planning. From December 2000 to July 2010, Michael held the position of Chief Executive Officer and Co-Founder of the franchise company Laptop Xchange. From June 1994 to December 2000, Michael held numerous roles within the Grow Biz International brands of Play It Again Sports and Computer Renaissance. These roles included Corporate Store Management, Field Operation Specialist, and Franchisee.

Jenny Mann

Vice President of Operations | Executive Director of IT

Jenny Mann is the Senior Vice President Clothes Mentor and Children’s Orchard. In February of 2024, Jenny took on her current role overseeing IT, Marketing and the e-commerce platforms for both brands. Prior to this, Jenny was the Director of Marketing for NTY Franchise Company since January 2013. Jenny started with the NTY Franchise Company in 2008 with Clothes Mentor and has held many roles, including; Store Manager, New Store Opener, and Regional Operations Manager. Before joining NTY Franchise Company, Jenny worked for Old Navy (Gap, Inc.) and Target in management roles.

Michelle Vaudrin

Senior Director of Operations

Michelle Vaudrin is the Senior Director of Operations for Clothes Mentor and Children’s Orchard. Prior to joining NTY Franchise Company in March 2016, she worked in leadership roles for Burlington, American Eagle and Macy’s. Michelle attended University of Wisconsin-Stout with a degree in Retail Merchandising and Business Administration. She brings extensive background in training of strategies, merchandising, customer service and multi-unit store operations to the team.

Ashley Huebner

Director of Marketing

Ashley Huebner oversees NTY Franchise Company’s marketing and advertising efforts to drive sales, build brand awareness and lead the planning on how to effectively market both brands. She leads creative initiatives for NTY Franchise Company, driving the brands’ vision in aesthetics, tone, and trends to elevate our brand position as a leader in the resale category. Ashley joined the Clothes Mentor team in March of 2015. Ashley has 8+ years of Graphic Design experience. Ashley holds a strong background in design, user experience, and a passion for creativity. She holds a BA degree in Advertising and Art.

Jessica Fix

Franchise Contract and Office Administrator

Jessica Fix is the Franchise Contracts and Office Administrator for NTY Franchise Company. She started with the company in January of 2018. Jessica works alongside the Franchise Development Team and provides office support to the headquarter office. She has 20 years in the franchise industry, previously working for Carlson Leisure Group/Travel Leaders Franchise Group in a variety of roles, such as Database Coordinator, Legal Contract Administrator, and Executive Assistant to the Franchise Sales Team.