Franch Monsters

Winmark Corporation franchises Plato's Closet, resale stores that buy and sell used brand-name clothing and accessories for teens and young adults; the only new merchandise they may sell is accessories. Winmark also franchises Once Upon A Child, Play It Again Sports, Music Go Round, and Style Encore.

Key figures

Investment

from $355,700

Payback

not disclosed

Royalty

5% of Gross Sales

Initial fee

$25,000

Listing updated October 21, 2026. Investment, royalty, and initial fee are from the franchisor's Franchise Disclosure Document (FDD) and may be out of date; check them with the franchisor and in its current FDD. Franch Monsters is not affiliated with Plato's Closet; this page is not an offer to sell a franchise.

About the franchise

According to its 2026 Franchise Disclosure Document (FDD), Winmark Corporation, incorporated in Minnesota in 1988 as Play It Again Sports Franchise Corporation, has offered Plato's Closet franchises since March 1999 (Item 1). The Systemwide Store Summary in Item 20 shows a fully franchised network with no company-owned stores, which grew from 506 stores in the USA and Canada at the end of 2023 to 526 at the end of 2025; Item 20's Status of Franchised Stores table puts 476 of them in the USA.

A typical Plato's Closet store is 3,500 to 4,500 square feet. You buy the point-of-sale (POS) system through Winmark and license Winmark's proprietary software under a separate Software License Agreement. The initial cost of both, paid to Winmark, is from $23,200, including a $6,000 software license fee (FDD Items 5 and 7). From the month after the store opens, you also pay a Software Fee of $295 per month plus applicable taxes, which covers maintenance, repairs, and updates of the software. The fee is subject to an annual increase of 10%, compounded and cumulative, so an increase in a given year may be greater than 10%. Winmark may also change its amount or frequency with at least 60 days' prior written notice (FDD Items 6 and 11).

Before opening, Winmark helps you evaluate a site and handle leasing issues for it, reviews your lease before you sign it, and provides store layout and design specifications (FDD Item 11 and the Franchise Agreement). Its mandatory training program has two parts, held at Winmark's training center in Minneapolis and online; Winmark charges no fee for it, but you pay your own travel and living expenses and the cost of the online financial management course you must register for during the training, currently $395, and you cannot open until you complete both parts (FDD Items 7 and 11). Winmark also provides 1 to 2 days of pre-opening assistance, typically 3 to 5 weeks before opening, and opening assistance on the day before and the day of the opening (FDD Item 11).

Item 19 of the 2026 FDD is a statement of average annual sales and gross profit for the 12 months ended December 27, 2025. It is based on figures reported by the franchised Plato's Closet stores in the USA and Canada that opened from 1998 through 2024 and were not transferred during 2025. The gross profit figures "do not reflect the operating expenses that must be deducted from the gross profit figures to obtain your net income or profit." Item 19 adds: "Your individual results may differ. There is no assurance that you will sell or earn as much."

Among the risks on the FDD's Special Risks page: "The franchisor's financial condition, as reflected in its financial statements (see Item 21), calls into question the franchisor's financial ability to provide services and support to you." The same page states: "You must make minimum advertising, and other payments, regardless of your sales levels. Your inability to make the payments may result in termination of your franchise and loss of your investment." It also states: "Your spouse must sign a document that makes your spouse liable for all financial obligations under the franchise agreement even though your spouse has no ownership interest in the franchise." Under Item 15, every individual who owns 10% or more of a franchisee entity is a principal owner, and all principal owners and their spouses must sign the Personal Guaranty attached to the Franchise Agreement.

Included in the franchise

Help with site evaluation and leasing issues for the store location (FDD Item 11)
Store layout and design specifications, plus a list of standard fixtures, equipment, supplies, signs, and initial inventory (FDD Item 11)
Winmark's mandatory two-part training program (no training fee; you pay your travel and living expenses and the online financial management course, currently $395), pre-opening assistance, and opening assistance on the day before and the day of the opening (FDD Items 7 and 11)
Field consultants who periodically evaluate the store and give you written reports, plus Winmark's confidential operations manuals (FDD Item 11)

Franchisee requirements

Capital: Winmark's "Plato's Closet Franchise Cost and Requirements" page lists a minimum net worth of $400,000 and cash or liquid assets in a range that starts at $75,000, "either individually or with a financial partner." Its "How to Buy a Plato's Closet Franchise: 4 Steps" page lists the same amounts and adds that not having these assets "does not necessarily disqualify you." Winmark's "Winmark Franchise FAQs" page gives the same range for Plato's Closet but also says that every Winmark brand requires a minimum of $90,000 in non-borrowed liquid assets. The FDD sets no net worth or liquid capital minimum
Capital sufficient for a Plato's Closet store (total initial investment from $355,700, per FDD Item 7); Winmark does not offer direct or indirect financing (FDD Item 10)
Use Winmark's required point-of-sale system and license its proprietary software (FDD Items 5 and 11)
A retail location approved by Winmark; a typical store is 3,500 to 4,500 square feet (FDD Items 7 and 11)
Sign a separate Franchise Agreement for each store (FDD Item 5)
Manage the store yourself: if you are an individual, you must be the on-site owner/operator and personally manage the store unless Winmark consents in advance to delegating this; if the franchisee is a corporate entity or partnership, one individual must keep at least 50% of the equity and voting interest and personally manage and operate the business (FDD Item 15)

Franchise agreement

The Franchise Agreement term is 10 years. You can renew for additional 10-year periods if you meet the renewal requirements: give advance written notice, comply with your current agreement, pay a $10,000 renewal fee, remodel the store, meet current brand standards, extend your lease, and sign the then-current Franchise Agreement, whose terms may be materially different from your original agreement (FDD Items 6 and 17). During the term, Winmark can also require you to modernize the store, but not more than once every 5 years (FDD Item 6).

Frequently asked questions

Item 7 of the 2026 Franchise Disclosure Document (FDD) puts the total initial investment from $355,700. Of that amount, from $48,200 is paid to Winmark: the initial franchise fee plus the initial cost of the point-of-sale system and proprietary software. The total is an estimate of your pre-opening initial investment and your expenses during the first 3 months of store operations. Item 7's estimate for those 3 months does not include inventory costs beyond the opening inventory or your own compensation (FDD Item 7).

The initial franchise fee is $25,000 for a first store and $15,000 for a second or subsequent store, or for an existing franchisee of another Winmark concept (Play It Again Sports, Once Upon A Child, Music Go Round, or Style Encore). For the first store, the fee is paid in a lump sum when you sign the Franchise Agreement and is non-refundable (FDD Item 5). The $15,000 fee is set by the Additional Store Addendum. You sign it if you are an existing franchisee of Plato's Closet or another Winmark brand in good standing, have been a Winmark franchisee for at least 12 months, and are opening an additional store. Winmark may waive the 12-month requirement in special circumstances. Under that addendum, Winmark "may, but will not be required to, provide location, training or opening assistance" (FDD Item 1 and the Additional Store Addendum to the Franchise Agreement).

Besides the initial franchise fee, you pay Winmark the initial cost of the point-of-sale (POS) system and proprietary software, from $23,200, which includes a $6,000 software license fee (FDD Items 5 and 7). Winmark charges no fee for its training program, but you pay travel and living expenses and the cost of the online financial management course you must register for during the training, currently $395 (FDD Items 7 and 11). Your first Marketing Fee payment is prorated based on the effective date of your Franchise Agreement and invoiced immediately (FDD Item 6). Pre-opening advertising expenses are part of Item 7's miscellaneous pre-opening expenses (FDD Item 7). For broadcast media placement and online advertising in your pre-opening and first-year marketing, you must use, at your expense, an approved supplier designated by Winmark (FDD Item 8). Item 7 estimates opening inventory from $75,000, and Winmark may refuse to allow you to open your store if you have less than $75,000 in used inventory (FDD Item 7). Winmark does not offer direct or indirect financing (FDD Item 10).

Winmark's "Plato's Closet Franchise Cost and Requirements" and "How to Buy a Plato's Closet Franchise: 4 Steps" pages list a minimum net worth of $400,000 and cash or liquid assets in a range that starts at $75,000. The first page applies these amounts "either individually or with a financial partner," and the second adds that not having these assets "does not necessarily disqualify you." Winmark's "Winmark Franchise FAQs" page gives the same range of non-borrowed liquid assets for Plato's Closet, but the same page also says that every Winmark brand requires a minimum of $90,000 in non-borrowed liquid assets plus equity to collateralize the remaining balance. The FDD sets no net worth or liquid capital minimum, so confirm the amounts with Winmark before you apply.

The royalty, which the Franchise Disclosure Document (FDD) calls the Continuing Fee, is 5% of Gross Sales, paid weekly. Other recurring fees include a $1,500 annual Marketing Fee, a $295 monthly Software Fee, and a 2% Advertising Fee to the North American Ad Fund, which took effect July 1, 2026. The Advertising Fee, cooperative advertising, and local marketing must together come to at least 6% of Gross Sales a year (FDD Item 6). You must contribute to the local advertising cooperative in your store's Designated Market Area (DMA) if the DMA contains 2 or more unaffiliated franchisees. The cooperative sets the amount, but your contribution is at least 0.5% of Gross Sales. The FDD states that you "will not be obligated to contribute more than 4% of the Gross Sales for your Store to your local advertising cooperative" (FDD Items 6 and 11).

The $295 monthly Software Fee is charged plus applicable taxes from the month after your store opens, and Winmark may change its amount or frequency with at least 60 days' prior written notice (FDD Items 6 and 11). The fee is subject to an annual increase of 10%, compounded and cumulative, so an increase in a given year may be greater than 10% (FDD Item 6). As of the FDD's issuance date (March 16, 2026), Winmark charges no technology fee, but it may establish a periodic technology fee with a minimum of 60 days' prior written notice. If it does, Winmark may later change that fee's amount or frequency with at least 60 days' prior written notice. That fee would also be subject to an annual increase of 10%, compounded and cumulative, so an increase in a given year may be greater than 10% (FDD Item 6). You must buy the computer hardware components for the POS system from Winmark; Item 8 estimates the handling fee on these purchases at 4% (FDD Item 8). Winmark may require you to update your POS system every 5 years or more often, with no contractual limitations on the frequency and cost of this requirement (FDD Item 11). You will also need to replenish your store inventory, both new and used items, regularly; Item 6 estimates quarterly inventory costs from $65,000 (FDD Item 6). A $10,000 Transfer Fee is due before a transfer is completed when the Franchise Agreement, a substantial portion of the store's assets, or any controlling interest in the franchisee is transferred, and a $10,000 Renewal Fee is due 30 days before renewal (FDD Items 6 and 17).

Item 20 of the 2026 FDD counts 526 Plato's Closet stores in the USA and Canada at the end of 2025, all franchised: 476 in the USA and 50 in Canada. The total was 515 at the end of 2024 and 506 at the end of 2023.
Updated: October 21, 2026113 views

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