Uptown Cheapskate Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$328,002 - $596,502
Franchise Fee
$25,000
Total US Locations
143
Business Summary
Uptown Cheapskate operates retail stores that buy and sell used and new brand-name products, primarily clothing and accessories, for teens and young adults. The business model focuses on purchasing gently used merchandise from customers in the local community and then reselling it at a significant discount compared to new items.
Corporate History
Uptown Cheapskate Franchise System, LLC, the current franchisor, was organized in Delaware on July 15, 2022. It acquired the Uptown Cheapskate franchise system assets on September 30, 2022, from its predecessor, Uptown Cheapskate, LLC (UCF). UCF, which was co-founded in 2008, opened the first company-owned Uptown Cheapskate store on February 26, 2009, and had operated as the franchisor of the system from September 2008 until September 2022. The current entity, Uptown Cheapskate Franchise System, LLC, began franchising in October 2022.
Financial Overview
Investment Range
$328,002 - $596,502
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Royalty %
5%
Marketing %
0.5%
Equipment Costs (Low)
$138,502
Equipment Costs (High)
$291,502
Working Capital
$53,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
BaseCamp Franchise Holdings, LLC and its Subsidiaries, which includes Uptown Cheapskate Franchise System, LLC, reported net losses for the past three years. Specifically, there was a net loss of $1,766,402 in 2024, $2,438,512 in 2023, and $904,008 in 2022. However, the independent auditor issued an unqualified opinion on the consolidated financial statements, indicating they present fairly in all material respects and did not include a going concern qualification.
Financing Details
Uptown Cheapskate itself does not offer direct financing. However, its affiliate, BaseCamp, may offer loans to franchisees for purchasing furniture, fixtures, and equipment. There is no down payment required for these loans, but franchisees must pay a non-refundable $500 documentation fee upfront. Loans carry an annual interest rate of 15% to 20%, compounded monthly, with payments automatically debited from the franchisee's account over terms of 12, 24, or 36 months. BaseCamp requires a security interest in the financed assets and a personal guarantee from the franchisee and their spouse or domestic partner. Uptown Cheapskate also works with third-party lenders like Wells Fargo, Key Bank, and Lendio to help franchisees secure financing, but it does not receive any payments from these referrals.
Performance Metrics
Total US Locations
143
Franchised Units
129
Corporate Units
14
Avg Square Footage
4,500
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Uptown Cheapskate's predecessor was involved in one arbitration claim filed on August 11, 2014, by a franchisee, Maribeth Vanderbeck and M Three, Inc., alleging unlawful earnings claims and poor support. Uptown Cheapskate denied the allegations. The arbitrator ruled on December 21, 2015, that the franchisee breached their agreement, entitling Uptown Cheapskate to terminate the franchise. However, the arbitrator also found that Uptown Cheapskate failed to advise the franchisee on lease negotiation and held Uptown Cheapskate (along with its affiliate and predecessor) jointly liable to the franchisee for $186,750 to offset some rent obligations. This award was confirmed by a U.S. District Court in January 2016. There is no other litigation required to be disclosed for Uptown Cheapskate.
Bankruptcy History
Uptown Cheapskate has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Uptown Cheapskate franchisees must meet several conditions. They must demonstrate that they are not in default and have substantially complied with all terms of their current agreements, and that all accounts with Uptown Cheapskate, vendors, and contractors are current. Franchisees are required to sign the then-current franchise agreement, which may have different terms and conditions, pay a renewal fee equal to 25% of the initial franchise fee, and renovate, paint, redecorate, and modernize their store's fixtures and equipment to meet current brand standards within two months of renewal. They must also sign a general release of claims and attend a refresher training if deemed necessary by Uptown Cheapskate. Additionally, franchisees owning other Uptown Cheapskate or affiliate stores must update those agreements to the then-current terms.
Training & Support Program
Franchisor Assistance
Uptown Cheapskate provides significant support to its franchisees. Before opening, assistance includes site selection and lease guidance, consulting with architects or contractors for store design and remodeling, providing specifications for fixtures and equipment, offering 4 days of in-person training and a 6-day, 50-hour internship, access to an online portal with training and operations tools, and advice for computer system installation. For a franchisee's first store, on-site assistance is provided the day before, during, and after the grand opening. After opening, ongoing support includes familiarization with products, training materials for managers and employees, help with system modifications, POS-related computer technical support from its affiliate BaseCamp (at no additional cost if computer system standards are met), purchasing and pricing strategy advice, and administrative, operational, bookkeeping, accounting, reporting, and inventory control procedures. Uptown Cheapskate also offers refresher trainings if sales targets are not met and organizes annual and regional conferences. Marketing support includes providing designs for digital and non-digital advertising, administering the National Marketing Program (NMP) for turnkey digital advertising, and the New Store Service (NSS) for grand opening digital marketing. Franchisees may also be required to participate in a Local Advertising Cooperative and contribute to a Marketing Fund.
Initial Training Hours
101
Training Location
Online/virtual, corporate office in North Salt Lake, UT, and existing Uptown Cheapskate stores in the Salt Lake City, UT area or other approved locations.
Ongoing Support
After opening, Uptown Cheapskate provides ongoing support to its franchisees in several areas. This includes assistance in familiarizing franchisees with product characteristics and features, and access to training materials and best practices for managers and employees. Franchisees receive POS-related computer technical support through the affiliate BaseCamp at no additional cost, provided they meet computer system standards. Uptown Cheapskate also offers advice on purchasing and pricing strategies under certain circumstances, and provides administrative, operational, bookkeeping, accounting, reporting, and inventory control procedures. Franchisees may be required to attend refresher training if their sales do not meet the system average for two consecutive years, and they are encouraged to attend annual and regional conferences or performance groups to discuss operational issues.
Franchise Requirements
Ideal Candidate Profile
Uptown Cheapskate seeks franchisees with the financial capacity, organizational ability, and marketing experience. Ideal candidates should also demonstrate an interest in promoting the brand's image and goodwill, and a desire and commitment to meet performance standards in areas such as sales, promotion, personnel, training, and financial obligations. Owners are required to directly supervise their business full-time for at least six months after opening, and for the entire term, the store must be under the full-time direction of a manager who has completed the required training and internship.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
Uptown Cheapskate defines its territories based on a circular geographic area. For both the Development Area (where a franchisee can search for a location) and the Protected Area (around the established store), the territory is typically defined as a circle with a radius equal to the lesser of five miles or an area containing a minimum residential population of 100,000 people. These measurements are determined using selected mapping software and consider factors like the local market, competition, and natural barriers.
Staffing Notes
Uptown Cheapskate requires that an owner-manager dedicate full-time effort to directly supervise the business for at least the first six months after the store opens. After this initial period, or when opening additional stores, either the owner or a manager who has successfully completed the franchisor's In-Person Training and Store Internship must directly manage the business on-site. Uptown Cheapskate recommends that a franchise owner always manages the store on-site. Franchisees are solely responsible for hiring, training, scheduling, compensating, and terminating all other store employees, referred to as 'Associates.' Franchisees must employ and train competent sales Associates, requiring them to participate in training sessions and register on the BaseCamp Training Portal. All Associates and related parties must sign confidentiality agreements and non-compete covenants.