Risk Score
Pending analysis
Investment Range
$322,700 - $449,000
Franchise Fee
$15,000
Total US Locations
53
Business Summary
Style Encore operates retail stores that specialize in selling quality used women's and men's clothing, as well as new and used accessories. The franchise focuses on offering consumer value by providing brand name used merchandise at significant savings compared to new items. Style Encore also purchases used products from customers, supplementing its selection with new accessories.
Corporate History
Winmark Corporation was initially incorporated on July 20, 1988, in Minnesota under the name Play It Again Sports Franchise Corporation. In July 1993, the company changed its name to Grow Biz International, Inc., and then again to Winmark Corporation in November 2001. Winmark began offering Style Encore franchises in April 2013. The corporation also operates several other franchise brands, including Play It Again Sports, Once Upon A Child, Music Go Round, and Plato's Closet, and has previously operated defunct brands like Disc Go Round and Computer Renaissance.
Financial Overview
Investment Range
$322,700 - $449,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$130,200
Equipment Costs (High)
$189,500
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD includes a special risk note indicating that the franchisor's financial condition, as reflected in its financial statements, calls into question Winmark Corporation's financial ability to provide services and support to Style Encore franchisees. However, the auditor's report from Grant Thornton LLP, dated February 26, 2025, provides an unqualified opinion on the consolidated financial statements for the period ending December 28, 2024, and states that no critical audit matters were identified.
Financing Details
Winmark Corporation does not offer direct or indirect financing to Style Encore franchisees and does not guarantee any notes, leases, or obligations.
Performance Metrics
Total US Locations
53
Franchised Units
53
Corporate Units
0
Avg Square Footage
3,500
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Style Encore has no litigation history to report. The franchisor, Winmark Corporation, has not been involved in any litigation that is required to be disclosed in this document.
Bankruptcy History
Style Encore, through its franchisor Winmark Corporation, has no bankruptcy information that is required to be disclosed in this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Style Encore franchise, franchisees must provide at least 180 days' written notice before the current agreement ends. They must have complied with all material provisions of their existing agreement, including financial obligations to Winmark and suppliers, and met all operating and quality standards. Franchisees are also required to remodel, modernize, and redecorate their store and update equipment to match the current look of new Style Encore locations. A renewal fee of $10,000 must be paid 30 days before renewal, and franchisees must sign Winmark's then-current franchise agreement, which may have different terms regarding royalties, advertising contributions, and territory definitions. Finally, franchisees must secure an extension of their lease or an approved new location within their development area.
Training & Support Program
Franchisor Assistance
Winmark Corporation provides Style Encore franchisees with both pre-opening and ongoing assistance. Before opening, the franchisor helps with site evaluation and leasing, provides store layout and design specifications, and offers a list of standard fixtures, equipment, supplies, and initial inventory. Franchisees receive a mandatory two-part training program in Minneapolis, MN, and online, along with confidential operations manuals. Winmark also offers pre-opening and grand opening assistance and helps develop a business plan. Ongoing support includes periodic store evaluations by field consultants, advisory services upon request, access to updates to the Business System and Manuals, and development of advertising and marketing materials.
Initial Training Hours
64
Training Location
Minneapolis, MN and online
Ongoing Support
After opening, Style Encore franchisees receive ongoing support from Winmark Corporation. This includes periodic evaluations of their store by field consultants, who also provide written reports to assist with operations. Franchisees can request advisory services related to their store's operations. Winmark also periodically provides updates and changes to the Business System, along with revised materials for the confidential Operations Manuals, which are accessible via the brand extranet site. Additionally, Winmark develops advertising and marketing materials for franchisees' use.
Franchise Requirements
Ideal Candidate Profile
Style Encore seeks individuals who will be the on-site owner/operator and personally manage their store, making the franchised business their primary job responsibility. If the franchisee is a corporate entity or a partnership, one individual must hold at least 50% of the equity and voting interest and be responsible for personally managing and operating the business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
exclusive
Territory Size Requirements
Style Encore franchisees receive an exclusive territory typically defined by a 3 to 5-mile radius around their store, determined by computer modeling based on population density, average household income, and consumer traffic patterns. For urban areas with a population over 250,000, the exclusive territory will generally have a minimum population of 75,000 to 100,000 people. In all other areas, the exclusive territory will generally have a minimum population of 50,000 people.
Staffing Notes
Style Encore requires that a designated management person be on duty at all times when the store is open for business, responsible for daily operations. Franchisees must employ a sufficient number of adequately trained and competent staff to provide efficient customer service. Franchisees are solely responsible for all aspects of employee management, including hiring, firing, training, setting hours, and supervising staff. Employees are considered the franchisee's staff, not Winmark Corporation's.