How much does a Style Encore franchise cost?
The 2026 Style Encore Franchise Disclosure Document estimates $339,200 to $458,900 to open one U.S. Style Encore retail location and cover the first three months of operation. The range applies to the standard retail format, typically 3,000 to 4,000 square feet. It includes the $25,000 Initial Franchise Fee, the required Point-of-Sale System, premises and build-out costs, Opening Inventory, pre-opening expenses, first-three-month rent, and Additional Funds.
Estimated Initial Investment for one new Style Encore location under the FDD issued March 16, 2026. The total includes $40,000 to $50,000 of Additional Funds for the first three months; it is not an extra amount to add again. Source: 2026 FDD, cover and Item 7, pp. 10–13.
Winmark’s public investment page, checked July 19, 2026, displays a $485,900 maximum. Its listed maximum line items add to $458,900, and both the 2026 FDD cover and Item 7 state $458,900. This article therefore uses the controlling FDD total of $458,900.
What does the 2026 investment range include?
The $339,200 to $458,900 range contains twelve cost categories. Five relate directly to the franchise fee, store fixtures, signage, security and Winmark’s POS System; seven cover the premises, inventory, pre-opening work and the first three months.
Franchise, fixtures and store systems
These expenditures are due at signing, when equipment is ordered, or before opening. The Initial Franchise Fee and POS System are paid to Winmark; the other categories are generally paid to third-party suppliers.
| Cost category | 2026 range | When due | Payee |
|---|---|---|---|
| Initial Franchise Fee | $25,000 | When the Franchise Agreement is signed | Winmark |
| Fixtures and Supplies | $50,000–$65,000 | Before opening | Third-party suppliers |
| Signs | $11,000–$16,000 | Before opening | Approved third-party suppliers |
| Security Cameras | $1,500–$4,000 | Before opening | Third-party suppliers |
| Point-of-Sale System | $23,200–$30,900 | Upon order, before training | Winmark |
Premises, inventory and the first three months
These categories are paid to landlords, government agencies, employees, contractors, consumers and other suppliers. The total assumes a leased retail location rather than a land or building purchase.
| Cost category | 2026 range | When due | Primary payee |
|---|---|---|---|
| Leasehold Improvements | $10,500–$20,000 | As incurred before opening | Contractors and architects |
| Build-Out | $35,000–$55,000 | As incurred before opening | Contractors and architects |
| Deposits and Business Licenses | $8,000–$18,000 | Before opening | Landlord, utilities and agencies |
| Opening Inventory | $70,000–$80,000 | Prepaid when ordered before opening | Suppliers and consumers |
| Miscellaneous Pre-Opening Expenses | $45,000–$65,000 | As incurred before opening | Suppliers and utilities |
| Rent – First 3 Months | $20,000–$30,000 | As incurred | Landlord |
| Additional Funds – 3 Months | $40,000–$50,000 | As incurred | Employees, Winmark and suppliers |
Miscellaneous Pre-Opening Expenses include travel, lodging and meals for two people attending initial training; the online financial management course, currently $395; internet and telephone setup; legal and accounting expenses; building permits; financing costs; pre-opening labor and advertising; website development; and shipping. Winmark does not charge a separate training fee, but the franchisee pays these travel and course costs. Source: 2026 FDD, Item 7, p. 12; Item 11, p. 25.
Additional Funds – 3 Months cover initial wages and fringe benefits, insurance premiums, advertising, taxes, office, paper and cleaning supplies, and interest payments on business loans. First-three-month rent is listed separately. The line excludes owner compensation and inventory purchases beyond Opening Inventory. Source: 2026 FDD, Item 7, p. 13.
Except where noted, amounts paid to Winmark are non-refundable; third-party landlords, contractors and suppliers determine whether their payments are refundable. Utility and security deposits are generally refundable, while business license fees are not. Source: 2026 FDD, Item 7, pp. 11–12.
The six categories with the highest maximums show why inventory, pre-opening work, fixtures and premises decisions drive much of the total range. Scale: $0 to $80,000.
Interpretation: Opening Inventory has the highest disclosed minimum and maximum. This chart shows selected official line-item ranges, not a separate total or midpoint. Source: 2026 FDD, Item 7, pp. 10–13.
When is the money paid?
The cash commitment starts when the Franchise Agreement is signed, continues through equipment ordering and construction, and extends through the first three months of operation. Winmark says the normal period from agreement acceptance to opening is approximately nine to twelve months, with a contractual twelve-month opening deadline.
At Franchise Agreement signing
Pay the $25,000 Initial Franchise Fee in a lump sum for a first location. It is non-refundable under the standard FDD terms.
Before training and the open-to-buy period
Order the $23,200 to $30,900 POS System and Proprietary Software from Winmark. Item 5 says this generally occurs about four weeks before the open-to-buy period.
During site preparation and before opening
Pay fixtures, signs, security cameras, leasehold improvements, build-out, deposits, licenses, Opening Inventory and Miscellaneous Pre-Opening Expenses as orders, permits and construction milestones occur.
During the first three operating months
Pay $20,000 to $30,000 of first-three-month rent and use the included $40,000 to $50,000 Additional Funds for disclosed operating expenses as they are incurred.
The standard sequence can be changed by a State-Specific Addendum. The 2026 FDD includes escrow, impound or deferral provisions affecting initial payments in Illinois, Maryland, North Dakota, Virginia and Washington. Current state effectiveness can change after issuance, so verify the applicable addendum and the official franchise offer disclaimer before paying. The FTC franchise buyer guide and FTC Franchise Rule explain the federal disclosure framework and fourteen-day review period.
Which Style Encore costs vary the most?
The largest variables are the premises, inventory plan and pre-opening execution. The investment table assumes a 3,000- to 4,000-square-foot retail location, and several costs rise with square footage, condition of the premises, contractor and permitting costs, transportation, local rent and the landlord’s contribution to improvements.
Opening Inventory is not a token starter amount. The FDD assumes substantially all opening inventory will be used women’s and men’s clothing, with a mix of used and new accessories. Winmark may refuse to allow opening with less than $70,000 in used inventory.
Premises costs are split between Leasehold Improvements of $10,500 to $20,000 and Build-Out of $35,000 to $55,000. The disclosure describes typical locations as strip shopping malls and smaller free-standing locations. Rent for the first three months is $20,000 to $30,000, based on an annual rent estimate of approximately $80,000 to $120,000, although actual local rent and negotiated free-rent periods may differ. Source: 2026 FDD, Item 7, pp. 12–13.
The security-camera range is $1,500 to $4,000. Winmark recommends four to eight cameras depending on the location’s size, so the required layout and coverage plan should be priced with the other equipment before opening. Source: 2026 FDD, Item 7, pp. 10–12.
The $23,200 to $30,900 POS System estimate includes a $6,000 Proprietary Software license fee, but excludes sales tax and shipping. Item 8 separately says Winmark charges an approximately 4% handling fee on computer hardware component purchases. The FDD does not expressly state whether that handling amount is already embedded in every quoted POS configuration, so the buyer should obtain an itemized system quote. Source: 2026 FDD, Item 7, p. 12; Item 8, pp. 13–14.
What fees continue after opening?
The principal recurring obligations are a 5% Continuing Fee on Gross Sales, a $1,500 annual Marketing Fee, a combined local and cooperative advertising minimum, and a $295 monthly Software Fee. A North American Ad Fund and a separate Technology Fee are not currently charged under the 2026 FDD, but Winmark retains the right to establish them with notice.
| Recurring obligation | Amount or basis | Payment timing | Important qualification |
|---|---|---|---|
| Continuing Fee | 5% of Gross Sales | Weekly, by Wednesday for the prior week | Winmark withdraws continuing and other fees from the franchise bank account. |
| Marketing Fee | $1,500 per year | First year prorated and invoiced immediately; then January 1 | May increase with 60 days’ notice, by no more than $1,000 during the agreement term. |
| Cooperative Advertising | 0.5% minimum if a cooperative exists; up to 5% | Set by Winmark or the cooperative | Cooperative and local advertising interact with the combined annual minimum below. |
| Local Marketing Expenses | Combined minimum of 5% of Gross Sales | Spent during each calendar year | Applies after counting cooperative advertising; a shortfall may be collected for later market spending. |
| North American Ad Fund | Currently $0; up to 3% of Gross Sales if imposed | Weekly if established | The total advertising minimum may rise to 6%, with up to half paid to the Ad Fund. |
| Software Fee | $295 per month, plus tax | First day of each month | Starts on the later of the month after opening or September 1, 2026; annual increases may compound. |
| Technology Fee | Currently $0; estimated $500–$2,500 per year if established | Periodic, after at least 60 days’ notice | Per franchised location; amount and frequency are not presently fixed. |
Winmark may change the Software Fee’s amount or frequency with at least 60 days’ notice. The Software Fee, and a Technology Fee if established, can be subject to annual increases of up to 10%; permitted adjustments are compounded and cumulative. Source: 2026 FDD, Item 6, pp. 9–10.
Gross Sales means total revenue from goods and services connected with the franchised business, including permitted Internet sales and payments by cash, check, credit card or trade, less customer refunds and returns. It excludes sales tax actually paid to the proper authority and wholesale transactions between Style Encore franchisees in good standing. This definition is the denominator for the Continuing Fee and percentage advertising obligations. Source: 2026 FDD, Item 6, p. 8.
The obligations below are not additive. In particular, a future Ad Fund contribution would be part of the possible 6% total advertising minimum, not 3% on top of 6%. Scale: 0% to 6%.
Interpretation: the fixed 5% Continuing Fee is separate from advertising. The current advertising obligation is a 5% combined local/cooperative spending minimum; Winmark can raise the total minimum to 6% and route up to 3% through an Ad Fund. Source: 2026 FDD, Item 6, pp. 7–10.
Winmark recommends $60,000 of advertising during the first year of sales operation, but the FDD presents that amount as a recommendation, not a separate fixed fee. The contractual floor remains the percentage-based local and cooperative advertising requirement described above. Source: 2026 FDD, Item 6, p. 9.
Which fees arise only after a transfer, renewal, default or system change?
Item 6 also creates event-triggered costs that are not part of ordinary monthly operating fees. The largest known fixed amounts are the $10,000 Transfer Fee and $10,000 Renewal Fee; several other obligations are variable or not currently estimable.
How much liquid capital and net worth does Winmark currently require?
Winmark’s official franchise pages currently list $75,000 to $105,000 in cash or liquid assets and $400,000 in Net Worth for a Style Encore candidate. These are qualification thresholds, not the $339,200 to $458,900 opening budget and not a promise that the remaining capital can be borrowed.
The official financial qualification page describes liquid assets as cash or stocks. Winmark’s current franchise FAQ describes the amount as non-borrowed personal resources and says additional equity may be needed to collateralize the balance. The 2026 FDD itself does not publish a Liquid Capital or Net Worth threshold.
Net Worth is not available cash. It is the value of assets minus liabilities. Liquid Capital is not the total investment. It is the portion of readily available, qualifying funds used in Winmark’s screening process. The FDD’s Personal Guarantee provisions can also place owners’ and, in some circumstances, a spouse’s personal assets behind the franchise obligations without increasing the opening total. Source: 2026 FDD, Special Risks cover page and Item 15, p. 31.
Item 10 says Winmark does not offer direct or indirect financing and does not guarantee a note, lease or obligation. The official Winmark franchise FAQ says franchisees use third-party lending sources, often SBA loans, and that Winmark assists with business-plan preparation. That assistance is not loan approval, a financing commitment or a guarantee. Source: 2026 FDD, Item 10, p. 17.
Does a second location have a different cost?
A qualified additional location receives a lower Initial Franchise Fee of $15,000, but the 2026 FDD does not publish a separate second-location total. All other location costs remain dependent on the new premises, equipment, inventory and opening plan, so the $10,000 fee reduction should not be treated as a complete second-location budget.
Winmark’s FDD requires a separate Franchise Agreement for each location. An existing Style Encore franchisee or franchisee of another Winmark brand generally must be in good standing for at least twelve months before opening an additional location and signing the Additional Store Addendum. Winmark’s official FAQ says it does not offer multi-unit agreements.
Winmark also markets purchases of operating Style Encore locations. Those transactions are not the new-location investment schedule: the purchase price, working capital, lease assignment, transfer conditions and refurbishment needs are deal-specific. The official Style Encore resale-opportunities page identifies available resales, but it does not replace transaction-level financial records or the Transfer Fee disclosure.
What does the official range leave unresolved?
The official range is detailed, but it does not eliminate local-price risk or cover every future cash need. The most important unresolved items are owner compensation, inventory replenishment, site-specific overruns, future technology and modernization requirements, and state-specific payment rules.
What capital figure should a prospective franchisee use?
Use $339,200 to $458,900 as the verified 2026 FDD Estimated Initial Investment for one new Style Encore location. The range already includes the $25,000 Initial Franchise Fee, first-three-month rent and $40,000 to $50,000 of Additional Funds. The most consequential variables are Opening Inventory, pre-opening expenses, fixtures, build-out and the leased premises.
Keep that range separate from Winmark’s current $75,000 to $105,000 Liquid Capital and $400,000 Net Worth screening figures. After opening, budget for the 5% Continuing Fee, annual Marketing Fee, monthly Software Fee, required advertising spending, ongoing inventory purchases and conditional obligations such as transfer, renewal, modernization and technology replacement. The central unresolved question is not the franchise fee; it is whether local premises, inventory and opening execution can remain inside the FDD assumptions.