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Style Encore Franchise ProfileRetail Franchises > Clothing Stores |
How Much Does It Cost to Open a Style Encore Franchise?
To open a Style Encore franchise, you should be prepared for an initial investment ranging from $322,700 to $449,000. This includes an initial franchise fee of $25,000. Prospective owners are required to have a net worth of at least $400,000 and liquid cash available between $75,000 and $105,000. Once operational, franchisees pay a 5% royalty fee and a 2% marketing fee based on gross sales. The brand currently operates 69 franchised units as of 2024, maintaining a purely franchised model with no corporate-owned stores.
What is the Financial Performance and Payback for Style Encore?
Style Encore presents a compelling business model with an average annual revenue per unit of approximately $901,981. Based on recent data, the franchise shows a relatively quick path to operational stability, with a breakeven time of about 9 months. For those looking at the long-term return on investment, the typical investment payback period is estimated at 41 months. These figures highlight the brand's potential for consistency in the resale fashion industry, catering to women who seek high-quality, gently used clothing and accessories.
Why Should You Consider Starting a Style Encore Franchise?
Starting a Style Encore franchise allows you to enter the sustainable fashion industry with a proven system. The brand focuses on buying and selling name-brand, second-hand women's apparel, which appeals to eco-conscious and budget-savvy consumers alike. With a median annual revenue of $901,981 per unit, the financial upside is significant. Furthermore, the company provides a structured environment for growth, as evidenced by the stability in unit counts over the last few years, growing from 66 units in 2023 back to 69 units in 2024.
Is Owning a Style Encore Franchise the Right Career Move?
If you have a passion for fashion and a desire to run a business that promotes recycling and value, Style Encore could be the right fit. Success in this franchise requires meeting specific financial thresholds, including a $400,000 net worth. While the initial investment is substantial, the support system of a 69-unit network and a clear path to breakeven within the first year provides a solid foundation for new entrepreneurs. You will need to manage daily operations effectively to reach the high-performance benchmarks set by the top-tier locations in the system.
Style Encore Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Style Encore Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Units | 71 | 66 | 69 |
| Net Change YoY | N/A | -5 | +3 |
| Franchised Units | 71 | 66 | 69 |
| Net Change YoY | N/A | -5 | +3 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | N/A | 0 | 0 |
Financial Investment and Requirements
Starting a Style Encore franchise requires a total initial investment ranging from $322,700 to $449,000. Prospective franchisees must meet specific financial qualifications, including a minimum net worth of $400,000 and liquid cash between $75,000 and $105,000. These figures cover the essential startup costs to establish a professional retail presence in the resale industry.
Ongoing Fees and Royalties
Franchisees are required to pay an initial franchise fee of $25,000 to join the system. Once operational, the brand maintains a royalty fee of 5% of gross sales for new units. Additionally, there is a 2% marketing fee which supports brand awareness and national advertising efforts to drive customer traffic to individual store locations.
Unit Growth and Network Scale
Style Encore has maintained a consistent presence in the resale market with 69 franchised units operational as of 2024. The brand operates under a 100% franchised model, meaning there are currently no corporate-owned stores. While the unit count saw a slight dip to 66 in 2023, the network rebounded in 2024, demonstrating the brand's resilience and ongoing appeal to entrepreneurs.
Performance and Revenue Outlook
The franchise demonstrates strong earning potential with an average annual revenue per unit of approximately $901,981. While revenue can vary by location, the median performance remains robust. This high volume of sales reflects the growing consumer demand for high-quality, gently-used women's designer clothing and accessories at a fraction of retail prices.
Investment Recovery and Breakeven
Data from the disclosure document indicates a relatively efficient path to operational stability. The typical breakeven time for a new Style Encore location is approximately 9 months. Furthermore, franchisees can anticipate an investment payback period of roughly 41 months, allowing owners to recoup their initial capital through consistent business performance.
The Style Encore Opportunity
Style Encore offers a unique niche in the Winmark Corporation family, focusing exclusively on buying and selling gently used high-end women's apparel, shoes, and handbags. By providing a sustainable shopping alternative that rewards customers with "cash on the spot," the franchise taps into the eco-conscious and budget-savvy consumer market, supported by a proven business model and no corporate competition.
Frequently Asked Questions
The total initial investment for a Style Encore location typically ranges from $322,700 to $449,000. This range covers various startup costs, including the initial franchise fee, equipment, and leasehold improvements.