1851

<a href="https://www.platoscloset.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Plato's Closet</a> is a resale clothing franchise that purchases and sells used brand-name children's and teenagers' clothes, shoes and paraphernalia. Unlike consignment shops, Plato's Closet pays sellers on the spot. The used clothes are purchased at between 30% and 40% of what Plato's Closet intends to sell them at, creating a profitable model for both franchisees and customers. The store's name was inspired by Dennis and Lynn Blum’s son's school work about the philosopher Plato, who had been an early proponent of recycling.&nbsp;Eager to see more consumers recycle gently used clothing, the founders wanted to expand Plato’s Closet to markets all over the country and knew that the brand was built to grow. When the founders realized that would require an investor with some muscle to get the job done, they turned to <a href="https://www.winmarkcorporation.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Winmark Corporation</a>.&nbsp;In 1993, Winmark Corporation, parent company of Winmark Franchise Partners, had purchased the franchising rights to <a href="https://onceuponachild.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Once Upon A Child</a>, the Blum’s other resale concept that targets parents of infants through preteens. In 1999, <a href="https://www.winmarkfranchisepartners.com/about-us/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Winmark</a> purchased the franchising rights to Plato’s Closet and started to franchise the concept in March of that year with just four existing Ohio stores in operation.&nbsp;For Winmark, Plato’s Closet represented a phenomenal growth opportunity. In fact, Plato’s Closet was the first brand where the parent company was able to successfully plan and grow a concept into a franchise superstar. Winmark focused on the core strengths of the brand and utilized a combination of marketing and public relations, as well as digital and social media, to accelerate the growth rapidly throughout North America.<a href="https://www.webcitation.org/6kJLjfJNm?url=http%3A%2F%2Finfoweb.newsbank.com%2Fresources%2Fdoc%2Fnb%2Fnews%2F0F54B84B0FAC9AC1%3Fp%3DAWNB&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">A 2001 article in the Star Tribune</a> brought the brand national attention by noting that Plato's Closet stocked up on brand-name items from retailers like <a href="https://en.wikipedia.org/wiki/Abercrombie_%26_Fitch?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Abercrombie &amp; Fitch</a>, <a href="https://en.wikipedia.org/wiki/Gap_Inc.?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Gap Inc.</a>, <a href="https://en.wikipedia.org/wiki/Silver_Jeans_Co.?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Silver Jeans Co.</a>, <a href="https://en.wikipedia.org/wiki/Sean_John?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Sean John</a>, <a href="https://en.wikipedia.org/wiki/Express,_Inc.?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Express, Inc.</a> and <a href="https://en.wikipedia.org/wiki/Dr._Martens?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">Dr. Martens</a> that they sold at a markdown of between 50% and 75%. <a href="https://www.webcitation.org/6kJLh8PEC?url=http%3A%2F%2Finfoweb.newsbank.com%2Fresources%2Fdoc%2Fnb%2Fnews%2F0F5925ACEE19C923%3Fp%3DAWNB&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">According to a 2002 article in Winston-Salem Journal</a>, Winmark spent around $67,000 for each television advertisement for Plato's Closet.With this business model and marketing strategy, the Plato’s Closet concept caught on like wildfire. As more and more young adults started shopping at Plato’s Closet, more and more franchisees started buying up locations. In 2001 there were 45 units and by 2008 there were 281. <a href="https://www.webcitation.org/6kJLGmNZE?url=http%3A%2F%2Finfoweb.newsbank.com%2Fresources%2Fdoc%2Fnb%2Fnews%2F129E6CB3EE5CBA88%3Fp%3DAWNB&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">In a 2009 interview with Star Tribune</a>, CEO John Morgan said Plato's Closet did the best during the Great Recession among Winmark's franchises because people were more likely to sell used clothing to make money and to buy used clothing to save money.&nbsp;In 2011 Plato’s Closet featured over 280 franchises in North America, and by 2018 the number nearly doubled, <a href="https://www.winmarkfranchisepartners.com/our-successes/growth-story/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">reaching 480 units</a>. Over the past 20 years, Plato’s Closet has turned into one the great success stories in franchising, currently boasting over 500 stores and growing at a rate of 25 to 40 new stores on average a year.<a href="https://www.winmarkfranchisepartners.com/blog/2017/july/the-story-behind-platos-closet-/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow">This incredible growth story required a solid concept, strong </a>unit-level<a href="https://www.winmarkfranchisepartners.com/blog/2017/july/the-story-behind-platos-closet-/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow"> economics, an efficient operational plan and franchisee success in both the short and long run</a>. Now, as new markets and new franchisees continue to enter the system, new technology platforms in digital and social media give franchisees better access than ever before to their customers.Plato’s Closet has received its share of accolades over the years, including<a href="https://www.businesswire.com/news/home/20170201006304/en/Child%C2%AE-Plato%E2%80%99s-Closet%C2%AE-Rated-Top-Retail-Franchises?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669" target="_blank" rel="nofollow"> top retail franchise by Entrepreneur magazine</a> and <a href="https://www.forbes.com/pictures/ggmh45ehd/no-1-platos-closet/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-platos-closet-was-built-to-sell-2713669#5bce76245b18" target="_blank" rel="nofollow">the No. 1 franchise investment by Forbes magazine</a>. Moving forward, there is no doubt that Plato’s Closet will continue to impress both its franchisee partners and the industry for years to come.&nbsp;

How Plato’s Closet Was Built to Sell

1851 Franchise

1851 Franchise takes a look at how the number-one clothing resale franchise reached its industry-leading position.

how-platos-closet-was-built-to-sell

Children's Lighthouse

Why Children’s Lighthouse Is a Great Multi-Unit Franchise Opportunity

why-childrens-lighthouse-is-a-great-multi-unit-franchise-opportunity

Why Franchise Prospects Should Consider Opening a Children’s Lighthouse in Up-and-Coming Markets

why-franchise-prospects-should-consider-opening-a-childrens-lighthouse-in-up-and-coming-markets

Caring Transitions

How Personal Experience Shaped My Entrepreneurial Path With Caring Transitions

how-personal-experience-shaped-my-entrepreneurial-path-with-caring-transitions

United Water Restoration Group

United Water Restoration Group: Maximizing Revenue with Emergency Services 

United Water Restoration Group: Maximizing Revenue with Emergency Services — Be There When Your Community Needs You

united-water-restoration-group-maximizing-revenue-with-emergency-services-be-there-when-your-community-needs-you

Right at Home

Right at Home 2025 Caregiver of the Year Award

Right at Home Honors Caregivers Worldwide:  Celebrating the 2025 Caregiver of the Year Awards

right-at-home-honors-caregivers-worldwide-celebrating-the-2025-caregiver-of-the-year-awards

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Subway Pushes Global Growth Despite U.S. Closures 

subway-pushes-global-growth-despite-us-closures

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

HTeaO Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-hteaos-franchise-costs-fees-profit-and-data

Lumin Lash Franchise Deep Dive - Costs, Fees, Profit and Data - 1851 Franchise

Lumin Lash Franchise Costs, Fees, Profit and Data for 2025

lumin-lash-franchise-deep-dive

KFC Franchise Costs, Fees, Profit and Data for 2025

kfc-franchise-deep-dive

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

Franchisee spotlight graphic with photo of Amy Lepke and family and Papa Murphy's logo

After 14 Years as a Stay-At-Home Mom, Amy Lepke Returned to Papa Murphy’s — This Time as an Owner

papa-murphys-franchise-amy-lepke

Franchisee Spotlight with Micki Waters and Papa Murphy's Logo

Work Mom: How Micki Waters Became a Mother Figure to Her Entire Papa Murphy’s Team

work-mom-how-micki-waters-became-a-mother-figure-to-her-entire-papa-murphys-team

Franchisee Spotlight with Huanyu Li and Paris Baguette Logo

A Longtime Love for Paris Baguette Led Huanyu Li To Open One of Her Own

a-longtime-love-for-paris-baguette-led-huanyu-li-to-open-one-of-her-own

How Plato’s Closet Was Built to Sell

MORE STORIES LIKE THIS