Feasibility Study 1-20-10[1]

8/9/2019 Feasibility Study 1-20-10[1]

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Feasibility Study: Purchasing a FranchiseSarah E. Wantiez

January 21, 2010

Trinity Christian College


2/18

Mission Statement

Platos Closet is all about being fashionsavvy and shopping smart. Were a

nationwide unique recycling retail store

specializing in clothes for teens andtwenty-something - we buy and sell thelast looks in gently used clothing and

accessories from the hottest brand namedesigners for girls and guys.

(1998, Winmark Corporations)


3/18

Winmarks Requirements

Purchase Price: $25,000

$52,980 to 98,655 Cash or liquid assets.

$123,620 to $230,195 to be used ascollateral

Investigate rental location

2,500 to 3,600 square feet


4/18

Franchise Benefits

Developing a 3 year Business Plan.

Retail Selection, Demographic Study andMarket Analysis

75 hours of classroom instruction and in-store training.

On-site support Pre-opening andOpening

Employee Training

Merchandising

Store Operations

Service Procedures


5/18

Cont.

Specially Designed Computer System

Also 24 hour access to computer assistance

Professionally produced advertising andmarketing resources

Television

Radio Commercials

Direct Mail Print Ads


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Winmark Supplies

Building permit and business license

Carpentry

Equipment- register, racks ect. Electrical, Plumbing

Grand Opening Advertising andPromotion

Heating, Venting, and Air Conditioning

Initial inventory

Interior Finished: Paint and Signage


7/18

Market Trends

Q3 Winmark reported an 11.6% increase

Q3 Platos Closet 23 Opened

3 Did not Re-new and Closed

4 Re-new Leases

Current Franchise Ranking of 97

Up 2 points from 2008


8/18

Customer Demographics

Middle to upper-middle-incomehouseholds with Junior/senior highschool and college girls and boys.

Core CustomerGroup

Females age 12 to 24 Secondary CustomerGroup

25-45 year old females (moms included)

Tertiary CustomerGroup

Males age 12-24

Product selection

Girls' juniors size 0 - 15/16

Guys' waist size 28 - 40


9/18

Location and Market Size

Oak Lawn IL, 60453

Population: 53,407

Average Age: 43

Average Income: 53,752

2 Middle Schools 7 others within a 3.5 mile radius

2 High Schools 5 others within a 3.5 mile radius

2 Colleges within a 3.5 mile radius


10/18

Surrounding Communities

Burbank

Chicago Ridge

Bridgeview Worth

Palos Heights

Palos Hills

Palos Park


11/18

Competitive Environment

Discovery

Family Owned and Operated for over 20

years

Sells latest trends

Low Prices

Power Strip-mall Locations throughout

Chicagoland

No Name Brands

Medium to PoorQuality Clothes


12/18


Forever 21 and Forever XXI

Mall Locations throughout the United States,

Canada, and Japan.

Sell New Clothes

Own Brand Also a Plus-Size Brand

Moderate Prices


13/18


Charlotte Russe

Approaching 500 stores in mall locationsworld wide and a $900 million in sales.

Corporate Backing

Sells New Clothes Variety of Clothing lines along with their own

brand.

HigherPrices

Moderate Quality Clothes


14/18

Location and Rent

TSF PPSF 12 Months=Monthly Rent

MallR

ange: $18 to $13 per square foot

3000 $15 12 months= $3,750


15/18

Interviews Quotes

Michael Salvati I am the hardest boss I ever had to work

for.

Michael Lally

I felt like I did not get a good-night sleep forthe first five years.

Dawn Lally

Devotion and patience are key to opening upa franchise and raising a family.

Robert Kuenster

Over the next twelve months we are justlooking to maintain.


16/18

Incorporation orLLC

Incorporation

Annual meetings and keeping detailedcorporate records (minutes)

Personal liability protection

Tax savings

Increased opportunities for raising capital

LLC

Offers all the same personal liabilityprotection minus the corporate Minutes.


17/18

PROS & CONS

PROS

Multi-Million DollarCompany backs the

franchise Winmark will assist you

in preparing businessplans to help insure a

successful franchise First step in becoming

an entrepreneur

CONS

Requires about $200,000

in start-up capital.

Requires a lot of time &Devotions to the

franchise


18/18

At this point a franchise is not for me.

Documents

Feasibility Study 1-20-10[1]