Clothes Bin Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$49,500
Investment required
$140,000 – $194,000
Royalty fee
$120 -$180 per week
Clothes Bin®: Revolutionizing Textile Recycling Through Franchise Innovation
Clothes Bin® is a pioneering franchise dedicated to textile recycling, offering communities convenient solutions for disposing of unwanted clothing and shoes. Founded in 2014 and headquartered in Davie, Florida, Clothes Bin® has established a national presence with independently owned Bins operated by franchisees across the United States.
The franchise began its operations in 2014 and has since developed a semi-absentee business model that allows franchisees to maintain other professional pursuits while contributing to environmental sustainability. Clothes Bin® provides a scalable investment opportunity with low initial costs, utilizing technology-driven systems that are simple to run and require few employees.
Clothes Bin® differentiates itself through its proprietary Bin Location Information Program (BLIP®), which monitors each Bin's capacity and optimizes collection routes, enhancing operational efficiency.
By focusing on environmental stewardship and economic stimulation, Clothes Bin® offers a unique franchise opportunity that aligns entrepreneurial success with positive community impact.
Initial investment
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure |
Amount |
Initial Franchise Fee |
$49,500 |
Real Property |
$1,700 – $8,000 |
Computer and Software |
$300 – $800 |
GPS Bin Technology |
$400 – $800 |
Initial Purchase of Bins |
$54,900 – $59,900 |
Freight Fees |
$7,995 |
Trailer and Parking Space Rental |
$800 – $2,800 |
Mandatory Bin Placement (for first 20 Bins) |
$5,995 |
Bin Location Services |
$0 – $7,490 |
Truck Rental for Placement and Collections |
$1,600 – $2,400 |
Pallet Jack, Locks & Supplies |
$400 – $1,200 |
Business Licenses, Permits or Registrations |
$400 – $1,100 |
Insurance |
$300 – $600 |
Initial Training |
$0 – $500 |
Legal and Accounting |
$750 – $3,000 |
Additional Bin Signage |
$0 – $1,000 |
Business Cards, Uniforms, and other items |
$300 – $800 |
Additional Funds for First 3 Months of Operations |
$15,000 – $40,000 |
Total Estimated Initial Investment |
$140,340 – $193,880 |
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Franchise Disclosure Document
Training
Clothes Bin provides various training programs to its franchisees as follows:
- Initial Training Program: This program includes at-home online and virtual training sessions, such as introductory calls and virtual classes, typically involving at least four two-hour sessions. It is designed to be completed within 60 days of the franchise agreement. The training covers general franchise operations, software systems, and business-specific topics like bin location and school programs.
- On-Site Training (Optional): Additional on-site training can be provided at the discretion of the franchisor. If approved, franchisees must pay fees not exceeding $750 per day, along with related expenses like travel and lodging.
- Ongoing Training and Refresher Courses: Franchisees or their designated managers may be required to attend annual refresher training at the corporate headquarters or other designated locations. Web-based training, webinars, and online courses may also be mandatory.
- Re-Training (If Necessary): If the franchisor deems the franchisee or their manager has not successfully completed the initial training, they may re-enroll in subsequent training sessions at a fee of no more than $750 per person, per day, along with associated expenses.
- Managerial and Employee Training: Franchisees are responsible for ensuring that all replacement managers and employees are adequately trained. Successor operating partners may also need to complete reasonable training programs specified by the franchisor.
Territory Protection
Clothes Bin provides its franchisees with a defined territory as outlined in the franchise agreement. Franchisees are permitted to operate their business exclusively within this specified territory, which is described in the agreement through maps, zip codes, or written descriptions.
The franchisor and its affiliates commit not to operate a similar Clothes Bin business or grant new franchises within the same territory, provided the franchisee complies with all terms of the agreement. However, Clothes Bin imposes certain limitations on franchisees regarding business activities outside their territory.
Franchisees cannot solicit, advertise, or place bins outside their designated territory without prior written consent from the franchisor, which is granted at its sole discretion. This structure ensures territorial protection while allowing the franchisor some flexibility in managing operations across different regions.