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Franchise Deep Dive: Uptown Cheapskate Franchise Costs, Fees, Profit and Data
Uptown Cheapskate is one of the fastest-growing brands in the $36 billion resale clothing industry. Here’s why.
LAST UPDATED: March 15, 2023
FRANCHISE WEBSITE: https://uptowncheapskatefranchise.com/
NUMBER OF LOCATIONS: 102
REPORTED COST TO GET IN: $346,279 to $544,339
REPORTED ROI (Item 19): $372,049 (average net income for top 25% of stores in 2022)
Uptown Cheapskate is a trendy resale clothing store for teens and young adults. The franchise focuses on giving young professionals and eco-conscious individuals a place to buy and sell fashionable, name-brand items, saving them money and keeping their gently used clothing out of landfills.
How Many Uptown Cheapskate Locations Are There?
In 2008, Uptown Cheapskate was founded in Salt Lake City, Utah by brother-and-sister duo Chelsea Sloan Carroll and Scott Sloan. Carroll originally began thinking about starting her own resale company before she left to serve a church service mission in Anchorage, Alaska in 2006. Her mission was to “disrupt the resale industry by offering an upscale, hip environment for young adults to buy and sell fashion that didn’t feel like a typical mom & pop thrift store.”
On the day Carroll came home from her mission, she and her brother initiated plans for what would be known as Uptown Cheapskate. They weren’t strangers to this world. They had both worked at their parent’s resale franchise, Kid to Kid, which sells new and gently used children’s clothing, toys, baby gear and maternity wear.
The first Uptown Cheapskate franchise location was opened just a few months after the pilot store. This environmentally friendly concept caught on quickly. Today, the company has more than 100 locations across the country. Uptown Cheapskate has ranked nine years in a row on the Entrepreneur Magazine’s “Franchise 500 list,” including No. 200 in 2023.
What Is the Uptown Cheapskate Business Model?
Uptown Cheapskate franchisees open a brick-and-mortar storefront that provides customers with the ability to purchase near-new fashion items at thrift prices. Instead of following the traditional method of consigning clothes, the store buys slightly used fashion garments and accessories and sells them for a fraction of their regular prices—generally marked down as low as 70% off original retail.
This eco-friendly business model ensures tens of thousands of items find new homes instead of going to landfills. Conscious consumerism is huge for younger demographics. Millennials and Gen Z shoppers want to know that the brands they frequent are doing good things for the world, which is part of the reason why Uptown Cheapskate is so popular with the younger crowd.
“There’s a high cost for shopping new, and consumers are waking up to the fact that fast-fashion brands are big polluters,” said Carroll. “The resale industry is growing faster than anyone expected, and our business model is going to be more relevant as people are going to need to save money on clothing, as well as make money from selling their clothes to us. The service that we provide to our customers is invaluable, and our strong unit economics reflects that.”
How Much Can Uptown Cheapskate Franchise Owners Make?
According to the brand’s 2022 Franchise Disclosure Document (FDD) Item 19, the top 25% of stores in sales volume boasted average sales of $1,563,885 and an average net income of $372,049. The second 25% saw average sales of $1,189,083 and an average net income of $247,326
How Much Does It Cost to Open an Uptown Cheapskate?
According to the brand’s most recent Item 7, the startup costs required to open an Uptown Cheapskate location are as follows:
| Initial Franchise Fee | $25,000 | $25,000 |
| Travel and Living Expenses While Training | $2,000 | $5,000 |
| Real Estate Deposit and Improvements | $15,000 | $115,000 |
| Exterior Signage | $8,400 | $16,800 |
| Interior Signage | $4,000 | $6,000 |
| Fixtures (Racks, Displays, Counter, etc.) | $95,040 | $118,800 |
| Computer System Hardware and Software | $15,239 | $15,239 |
| BaseCamp® Software Suite | $10,000 | $10,000 |
| Security System | $1,800 | $6,000 |
| Grand Opening Promotion | $20,000 | $25,000 |
| Opening Inventory | $48,000 | $65,000 |
| Incorporation Docs | $500 | $1,000 |
| Loan Fees | $3,500 | $8,500 |
| Licenses, Permits, Utility Deposits | $1,000 | $2,000 |
| Supplies, Misc. Expenses | $6,000 | $9,600 |
| Pre-Opening Working Capital | $48,000 | $60,600 |
| Additional Funds/Working Capital | $42,000 | $54,000 |
| TOTAL | $345,479 | $543,539 |
What Is the Franchise Fee for Uptown Cheapskate?
- The initial franchise fee is $25,000.
- Interested franchisees must be financially fit, with liquid capital available ($100,000 to $125,000) and a net worth of $200,000 (minimum).
Who’s On Uptown Cheapskate’s Leadership Team?
- Chelsea Sloan Carroll—President
- Scott Sloan—Founder
- Brighton Sloan—Chief Operating Officer
- Craig Smith—Chief Financial Officer
- Dave Martell—Director of Franchise Development
- Rhett McNamara—Director of Information Technology
What Helpful Articles Can I Read to Learn More About Uptown Cheapskate?
- Shopping for the 5 Best Clothing Store Franchises
- 10 Emerging Retail Franchise Brands That Are About to Take Off
- Explore Uptown Cheapskate’s Unit Economics
- New Year, New Career with Uptown Cheapskate
- Secondhand’s Role in Holiday Shopping
- A Day in the Life of an Uptown Cheapskate Franchisee
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