Clothes Bin Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$161,940 - $216,980
Franchise Fee
$29,500
Total US Locations
74
Business Summary
Clothes Bin franchises operate a business focused on the collection and resale of clothes, shoes, and textile items. The business involves placing specified recycling collection bins in various locations such as gas stations, convenience stores, shopping centers, and residential areas. Franchisees are responsible for managing, monitoring, and servicing these bins, as well as collecting, transporting, distributing, and reselling the collected items. Clothes Bin franchisees utilize a proprietary system, including specialized bins, signage, and software for mapping, tracking, and optimizing bin performance. The primary revenue for Clothes Bin franchisees is generated from the resale of collected textiles to businesses in the recycling, thrift, and other retail industries.
Corporate History
FLSC Recycling, LLC, which operates as Clothes Bin, was formed in Florida in December 2014. Clothes Bin began offering franchises in January 2015. The company's business model involves placing recycling collection bins for clothes, shoes, and textiles, and then managing the collection, transportation, and resale of these items using a proprietary system. Its parent company, Recycling Brands, LLC, was formed in Delaware in May 2021 and became the parent of FLSC Recycling, LLC in July 2021. An affiliate, FLSC, LLC, has operated a similar clothes bin collection business in Florida since October 2007 but does not offer franchises.
Financial Overview
Investment Range
$161,940 - $216,980
Franchise Fee (Low)
$29,500
Franchise Fee (High)
$49,500
Equipment Costs (Low)
$70,600
Equipment Costs (High)
$82,300
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
FLSC Recycling, LLC (Clothes Bin) demonstrates strong financial performance and health. Its audited financial statements for the year ended December 31, 2024, received an unqualified opinion from its independent auditor, indicating that the financial statements present fairly in all material respects. The company experienced significant growth in 2024, with total revenues increasing from $1,875,043 in 2023 to $6,389,467, and net income soaring from $64,949 in 2023 to $1,592,223. The company also maintained a positive cash position, with cash balances rising from $890,588 in 2023 to $1,054,433 in 2024. No substantial doubt about Clothes Bin's ability to continue as a going concern was raised by the auditors. Additionally, the company successfully obtained default judgments in a legal claim in 2023 and 2024, contributing to other income and accounts receivable.
Financing Details
Clothes Bin offers financing to its current franchisees who are in good standing, specifically for the purchase of additional bins. This financing can cover up to 75% of the costs, with a minimum down payment of 25% plus related freight costs. Repayment is structured in weekly payments of principal and interest at an annual rate of 9%, over the remaining term of the Franchise Agreement, not exceeding 24 months. The first payment is due 60 days after the financing begins. There is no penalty for early prepayment. Franchisees' principal owner(s) must personally guarantee the Promissory Note, and Clothes Bin takes a security interest in the bins, filing a standard UCC-1 financing statement. Clothes Bin does not intend to sell or assign these financing arrangements to third parties. In the future, Clothes Bin may also extend similar financing terms for a franchisee's initial 20 bins.
Performance Metrics
Total US Locations
74
Franchised Units
70
Corporate Units
4
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Clothes Bin has no litigation history to report as no litigation is required to be disclosed in Item 3 of the FDD.
Bankruptcy History
Clothes Bin has no bankruptcy history to report as no bankruptcies are required to be disclosed in Item 4 of the FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Clothes Bin franchise, franchisees must have substantially complied with all provisions of their agreement during the initial or first renewal term, and must bring the business into full compliance with current specifications and standards. Franchisees must provide written notice of their desire to renew between 9 and 12 months before the current term expires. All monetary obligations to Clothes Bin and its affiliates must be satisfied and have been met in a timely manner throughout the agreement term. Franchisees will need to pay a renewal fee equal to 20% of the then-current Initial Franchise Fee charged to new franchisees. They must also sign Clothes Bin's then-current Franchise Agreement, which may have materially different terms and conditions, and comply with all current qualification and training requirements. Finally, franchisees are required to execute a full general release of any claims against Clothes Bin and its affiliates.
Training & Support Program
Franchisor Assistance
Clothes Bin provides extensive support to its franchisees. Before opening, Clothes Bin assists with providing a list of potential bin locations, approving signage, lending the Confidential Operating Manual, designating opening inventory, and furnishing lists of approved suppliers. Clothes Bin also sells the initial bins to franchisees and approves advertising. They provide an Initial Training Program. Clothes Bin offers a mandatory Bin Unload and Placement Service for the first shipment of bins for a fee, and an optional Bin Location Services program for finding bin locations, also for a fee. Once open, Clothes Bin offers ongoing assistance through updates to supplier lists and specifications, approval of advertising materials, and general operational support by various means (in-person, phone, email, internet) based on personnel availability. Clothes Bin also provides franchisees with the option to sell collected items through its National Buyer Program and may require attendance at annual conferences and refresher training programs for a fee.
Initial Training Hours
8
Training Location
Online/virtual
Ongoing Support
After opening, Clothes Bin provides ongoing assistance through regular updates to its list of approved supplies and suppliers, and approval of all advertising, direct mail, identification, and promotional materials. Clothes Bin may, at its discretion, offer general assistance with the operation of the franchised business via in-person visits, telephone, email, or the internet, with timing depending on staff availability. Franchisees have the option to sell their collected clothes, shoes, and textiles through Clothes Bin's National Buyer Program, subject to specific policies and procedures. Clothes Bin may also offer optional Bin Location Services for a fee. Franchisees may be required to attend mandatory annual refresher or additional training programs at Clothes Bin's corporate headquarters or other designated locations, or participate in webinars or online courses, for which fees (up to $750 per person, per day) and attendee expenses apply.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Clothes Bin territories are defined geographic areas containing approximately 150 to 350 potential bin locations, specifically gas stations and convenience stores, within their boundaries. The exact size and population of each territory may vary and will be identified by a map, zip codes, or a written description.
Staffing Notes
Clothes Bin requires its franchisees to employ a sufficient number of competent and trained employees for efficient operation. If the franchisee or their Operating Partner does not actively manage the day-to-day business, then a competent manager must be employed. The Operating Partner, if applicable, must hold at least a 5% equity interest in the franchise and be approved by Clothes Bin. All managers and personnel with access to confidential information are required to sign confidentiality and non-compete agreements. Franchisees and their staff must wear uniforms or attire as specified by Clothes Bin. At least one employee's salary and benefits are included in the estimated initial operating funds.