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Clothes Bin®

Retail Year: 2025
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What Is Clothes Bin?

Clothes Bin is a franchise that operates in the textile recycling/collection sector, providing recycling collection bins for clothes, shoes and textiles. The operational model centers on placing and managing franchisor‑specified collection bins at leased third‑party locations within a designated territory and using the franchisor’s Bin Location Information Program (BLIP) and proprietary systems to map, track, and monitor bins while collecting, transporting, distributing and reselling collected items. It engages the general public as no‑cost donors (B2C) and derives revenue by reselling collected goods to businesses in the textile recycling, thrift and retail sectors (B2B). Franchisees are required to purchase an initial package of 20 Bins and use franchisor services for unloading and initial placement as part of training.

Clothes Bin Franchise: Pros and Cons

A major strength is its unusually low operator turnover with 0 outlet terminations and a spotless legal record (zero lawsuits, judgments, penalties), but a notable risk is that 2 outlet nonrenewals and 27 signed but not open units suggest potential franchisee dissatisfaction or problematic expansion delays.

Pros

0 outlet terminations is well below what's normal in Retail (bottom 5%), indicating unusually low operator exits and stronger-than-typical retention among franchisees.
Zero disclosed lawsuits, zero franchisee-initiated judgments/settlements, zero government penalties or orders, zero franchisor-initiated enforcement, and zero fraud cases - all well below typical for Retail - point to a clean legal and regulatory record that reduces litigation risk and oversight friction.
Manager required equity of 0% is well below typical for Retail, giving you flexibility to recruit and compensate on-site managers without being forced to sell or assign ownership stakes.

Cons

2 outlet non-renewals is well above typical for Retail (top 10%), suggesting some franchisees have chosen not to renew their agreements and signaling possible satisfaction or economics issues for operators.
27 signed-but-not-open units is well above typical for Retail (top 10%), which often reflects delays in approvals or build-outs, or that the franchisor may be selling agreements faster than it can support actual openings.

Territory Protection

43/100
NORMAL

Clothes Bin grants a protected exclusive territory (map/ZIP/description) of ~150–350 potential gas station/convenience-store Bin sites, allowing intra-territory Bin relocation but not Territory amendment. Rights depend on compliance and performance quotas; franchisor may develop nearby units and sell via alternative channels in or near the territory, without offering first refusal.

Training & Support

54/100
NORMAL

The brand provides a streamlined 8-hour training curriculum designed to prepare two individuals for launch. The program includes on-site launch support to assist operational readiness, with travel and lodging expenses and any additional on-site support fees the responsibility of the franchisee.

Franchisee Stability

40/100
NORMAL

Clothes Bin receives a Normal Stability Score. Three-year turnover of 9.00% is well above the typical Retail franchise (around 4%), sitting near the high end of the retail range reported by peers. Out of 9 total exits, non-renewals and ceased operations dominated with 3 each, alongside 2 terminations and 1 franchisor buyback, and about 38 franchised outlets operated in the most recent year.

The tied dominance of non-renewals and ceased operations suggests a mix of contract-maturity departures and location-level economics: some franchisees opted not to renew at term end, while others closed underperforming locations rather than being reclaimed by the franchisor. That pattern points to local market or site-selection issues in some areas rather than system-wide enforcement, though the presence of terminations shows the franchisor does sometimes remove operators. For prospective franchisees, retention is in line with industry peers.

Unit Growth Analysis

Unit Growth Chart

This franchise is on an accelerating growth trajectory: unit counts moved 37 (2022) → 36 (2023) → 43 (2024) → 74 (2025), with YOY rates of -2.7%, +19.4% and a sharp +72.1% most recently. For investors, the rebound from a slight contraction in 2023 to rapid expansion through 2025 signals improving franchise health and strong demand, but the jump from 43 to 74 units in one year raises execution and sustainability risks (operations, training, unit economics) that should be monitored.

How Much Do Clothes Bin Franchise Owners Make?

Clothes Bin franchise locations reported average gross sales of $358,953 and median gross sales of $241,537 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:
$358,953
Median Gross Sales:
$241,537
High Gross Sales:
$1,139,889
Low Gross Sales:
$69,887
Sample Size:
13
Percent Attaining Average:
30.8%
Audit Status:
Unaudited
Franchise vs Corporate Performance: Only franchised-unit data are reported (13 franchisees); no company-owned or corporate-operated outlet financials are provided, so direct comparison to corporate performance is not possible.
Performance Variability Analysis: There is substantial variation among franchisees in 2024 - the median gross revenue (241,537) is well below the mean (358,953) and the range spans from 69,887 to 1,139,889, indicating a skewed distribution with several high outliers.
Data Scope and Limitations: The representation covers only 13 of the franchisees that met the reporting criteria in 2024 (limited sample) and while income is reported, detailed numeric COGS figures are not provided, which limits full P&L analysis.

Frequently Asked Questions

Is Clothes Bin a good franchise to own?

Whether Clothes Bin is a good franchise depends on your goals, experience, and local market. Key factors from the 2025 FDD: Clothes Bin operates 74 locations, received a legal risk score of 100/100, a training and support score of 54/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

What is the failure rate of Clothes Bin franchises?

In the 2025 FDD, Clothes Bin reported 0 terminated franchises and 2 non-renewals out of 74 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.

How long does it take to break even with a Clothes Bin franchise?

Break-even timelines for Clothes Bin franchises are not disclosed in the 2025 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is Clothes Bin a franchise or a corporate-owned business?

As of the 2025 FDD, Clothes Bin operates 70 franchised locations and 4 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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