An important step in your research is reviewing the Franchise Disclosure Document (FDD). It’s filled with a lot of useful information, but it can often be a bit overwhelming. First, check out our short videos. Clothes Mentor’s Vice President of Franchising James Wollman will walk you through the highlights.
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Check out even more highlights from the Clothes Mentor Franchise Disclosure Document below.
Items 1 and 2: Background
We have been involved in resale retail franchising this type of business model for more than 25+ years.
Item 3: Litigation
None. This shows that we are good business partners.
Item 4: No Bankruptcies
We have been very wise in our financial investments.
Item 5: Initial Fee
Some of the lowest in the franchise business.
Item 6: Other Fees
These are fees you will see in the operation of your business. You can view the breakdown on the chart listed in Item 6 in the FDD.
Item 7: Estimated Initial Fees
These are the fees to open your store, they can vary from store to store or state to state. This is the estimated amount to get the “doors open for business.” There is a chart with the breakdown of the fees listed in Item 7. We also have a relationship with Wells Fargo, which will help with setting up your financing. We are also listed on the SBA registry, which makes it easier to work with all SBA approved banks.
Item 11: Franchisor Assistance
This is an explanation of the assistance we as the franchisor will give to you. This is the minimum you will receive from us, hopefully, you have seen today that we have much more for you to use in the development of your business.
Item 12: Protected Territory
Describes your protected market, this area will be exclusive to you as a franchised location and will be outlined in the “Exhibit A” portion of the Franchise Agreement. We will go through a mapping session to layout your territory with you before the Franchise Agreement is prepared.
Item 17: Renewal
The term of our Franchise Agreement is 10 years, which you are able to renew as stated in this item.
Item 19: Financial Performance Representations
Everyone wants to look at this, as it explains our sales history for our franchise locations. Make sure you read the explanation at the top of Item 19, as it will explain what information was used in putting the chart together.
Item 21 and Exhibit A: Financial Statements
This represents our franchise brands, not individual stores. We’ve invested a lot in staff, tools, and technology in advance of our brand growth.
Exhibit B: Franchise Agreement
Ours is only 27 pages long. Everyone signs the same agreement. You will want to read the Franchise Agreement first because it is what you sign, what we sign, and what we both abide by in our business relationship. The only difference between the Franchise Agreement, which is contained within the FDD, and the original printed document that you would sign is that we fill in your name and protected territory.
Exhibit C: List of Franchised Stores
This is where you’ll find locations and contact information for all of our stores. You should make phone calls to validate our information.
Exhibit I: Receipt
A signed receipt is our proof that we provided you with the FDD, which is required by the Federal Trade Commission.