Franchise Information Report

No re-use or re-distribution of any of these materials is allowed without the express written consent of: Clothes Mentor®, LLC
Copyright © 2015 All Rights Reserved by Clothes Mentor, LLC

AFTER READING THE INFORMATION IN THIS REPORT, CONTACT:

One of our Franchising Representatives:

Direct: (952) 283-3411 | Toll-Free: (866)261-2030, Ext 1 | info@clothesmentor.com

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THANK YOU FOR YOUR INTEREST

The following information covers more details than what you may have already seen on our website. It will give
you a concise overview of the highlights of our Franchise Business Opportunity. You will receive considerably
more detailed information in our Franchise Disclosure Document (FDD) when you complete and return our
Clothes Mentor Initial Application.

If you experience any difficulty in using the link to complete your Clothes Mentor franchise application, please
email: info@clothesmentor.com with your contact info - including daytime phone number - or preferably, call us
at 952-283-3414 during business hours.

TABLE OF CONTENTS
Our Customers............................................................................................... 03
Why Women’s Fashion & Accessories............................................................ 03
Why a Franchise............................................................................................. 04
Clothes Mentor Going Strong......................................................................... 05
How Will I Know What To Buy........................................................................ 06
Training........................................................................................................... 07
Operation/Field Support................................................................................ 07
Point of Sale (POS) Computer System....................................................... 08-09
Store Fixture & Design Vendor....................................................................... 10
Store Size & Location...................................................................................... 11
Initial Investments.......................................................................................... 11
Financing & Business Plan.............................................................................. 11
Our Management Team............................................................................ 12-13
6 Easy Steps.................................................................................................... 14
How to Learn More........................................................................................ 15
Getting Started............................................................................................... 15

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OUR CUSTOMERS
Clothes Mentor stores are designed for ALL women sizes 0 through 26. All women will appreciate getting great
deals on “gently used” apparel, purses, shoes and accessories in the brands they love.

SOME SAMPLE BRANDS:

APPAREL: PURSES: SHOES: ACCESSORIES:
CHICO’S COACH JESSICA SIMPSON NECKLACES
ANN TAYLOR DOONEY & BOURKE NINE WEST BRACELETS
J. JILL KATE SPADE BORN EARRINGS
LANE BRYANT MICHAEL KORS COLE-HAAN RINGS
LOFT LOUIS VUITTON STEVE MADDEN BELTS
WHITE HOUSE BLACK MARKET MARC JACOBS NIKE SCARVES
All Brands are trademarked or registered by their respective companies or manufactures.

WHY WOMEN’S FASHION

& ACCESSORIES?
Experts agree that, in this economy, people will still buy
food, medicine and CLOTHING... and it’s a vast market:
• Women’s clothing is not a fad... it is a $78 Billion
Dollar per year business.
• This business has staying power because women
change sizes and they love to change their look
frequently... this creates continuous additional
business.
• Buying the most sought-after brands “gently-used,”
at about 70% off of mall store pricing... every day - is
smart and appealing.
• Best of all, our established stores have achieved 60%
+ Gross Profit Margins! That’s nearly double what
traditional retailers run!

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WHY A FRANCHISE?
PROVEN BUSINESS OPERATING SYSTEM - Avoid years of trial
and error - reduce costly mistakes - maximize the potential of this
business much sooner - shorten your learning curve - stack the odds in
your favor.

STORE OPENING ASSISTANCE - We have proven vendors already

in place to get you the best pricing and service on everything you
need for your store’s design and build-out: Fixtures, equipment,
interior/exterior signage, credit card processing and proprietary Point-
of-Sale system.

PROPRIETARY POINT OF SALE SYSTEM (POS) - Specifically designed

for the RESALE of women’s clothes - our POS has an automated
touch screen BUY Matrix with categories and brands built in - bar
coded price tags & integrated high speed credit card processing for
faster customer service and far less human errors - This is an inventory
management/cash flow tool that really helps you to measure and
manage your business to it’s fullest potential - truly one of our most
potent “secret” recipes.

PROFESSIONAL ADVERTISING/MARKETING SUPPORT - Put your

business on the map in a big way. . . even before your Grand Opening. We
make available to you: Professionally designed templates, advertising
materials and marketing programs that can be customized to your
business location. This helps you to acquire the inventory needed to
open, operate, and promote your store.

ON GOING SUPPORT - YOUR SMALL BUSINESS CONSULTANT -

Because our royalty is a percentage of your sales, our success is directly
tied to your success. So we are very motivated to assist you in ongoing
support throughout the life of your business. We assign you a field-
support person to be your “small business consultant” - they see what
you see in the POS system reports and can be very helpful to you in
spotting opportunities to make corrections or maximize results (they
are in regular communication with you).

SITE LOCATION ASSISTANCE - We have a national system of retail leasing

brokers, who know their individual market areas AND requirements for
a Clothes Mentor store site, letter of intent and lease.

BANK FINANCING - We have a SBA preferred status lender who can

help with a pre-qualification before you commit to opening your store.
This lender knows our brand, business plan and how to process the
loans quickly and efficiently.
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RAISING IN THE RANKS!

Clothes Mentor started franchising in 2007. Out of thousands of different franchise opportunities in the USA,
Clothes Mentor made it into Entrepreneur Magazines Franchise 500 in 2009 and since then our ranking has
continued to steadily improve.

Entrepreneur Magazine Franchise 500® Ranking History

Clothes Mentor was ranked #210 out of appoximately 3,500 franchise brands in the USA.
2015 - #210
2014 - #221
2013 - #235
2012 - #329
2011 - #409 “This is way easier and takes a lot less time
2009 - #470
and effort. I LOVE this... It really works!”
- Clothes Mentor Franchisee

CLOTHES MENTOR STORE GROWTH 124

Stores Open
Clothes Mentor boomed during the economic downturn. That downturn
helped us gain value conscious women that continue to be repeat customers
and tell friends about us. As the stock market and economy improve, 93
we are seeing even further growth of our franchise system. Stores Open

81

a t I w a s u se d to in other Stores Open

“Compared to w h
th a t y ou r st or es a re bright,
resale shops... I love ev er b u y a dress at a
n g. I ’ll n
clean, and inviti 48
st or e a g a in !”
department Stores Open

omer
- Clothes Mentor Cust
36
Stores Open

19
Stores Open
12
Stores Open
4
Stores Open

2007 2008 2009 2010 2011 2012 2013 2014

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HOW WILL I KNOW WHAT TO BUY?

In addition to the “hands-on” owner training programs and an
automated Point-of-Sale system, you will receive:
STYLE/TREND REPORTS - An on-line and in-print guide
highlighting the hottest styles and trends for each upcoming
season.
BUYERS GUIDE/LABEL GUIDE - Training tools to ensure that
your buyers know specifics of assessing and evaluating each
piece of merchandise.
EXAMS - For training store staff based on the guides.
ON-SITE INVENTORY EVALUATIONS BY CM FIELD SUPPORT STAFF -
A feedback report is provided to you in writing after each store visit.
MALL VISIT PROGRAM - An organized maintenance course provided to you
on how your staff can keep up with styles and trends in your local market.
ADVANCED TRAINING WORKSHOPS - Annual National Conference hosted for
you and your management staff.
ON-DEMAND VIDEO TRAINING - Available 24/7 on our Clothes Mentor
convenient extranet.

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TRAINING
4 TO 6 DAYS - BUSINESS TRAINING
• Real Estate/Site Selection - What should go a into lease and what criteria to use in finding the correct site.
• Business Plan - Funding. Comprehensive business planning preparation and financing options.
• Franchise Communication/Extranet
• Intro to 3rd Party Vendors - Purchasing Power
• New Store Design & Build-out - All encompassing “how-to” on the store build-out, outlining every detail of
fixtures, counters, signage, floor coverings, hangars, bags, etc.
• Pre-Opening Marketing & Advertising

4 TO 6 DAYS - STORE OPERATIONS TRAINING

• Sales & Marketing
• Merchandising
• Computer Point-of-Sale Operations
• Inventory & Cash Flow Management
• Store Management, Personnel & Staffing
• Buying Used Fashions - What you should and shouldn’t buy.

OPERATION/FIELD SUPPORT
Pre-Opening Visit - takes place 2 weeks after opening your store to begin buying
inventory.
• Duration: 1-2 days
• Focus: Helps to ensure proper buying of product, making sure fixtures are
installed properly and that the POS system is functioning correctly.

Store Opening Visit - Takes place the day before and the day of opening your
store to begin selling merchandise
• Duration: 2 days
• Focus: Final tweaks to merchandising and staff training - CM support staff
member will be there as a resource for answering questions at store opening.

Follow Up Visit - Takes place approximately 90 days after opening your store
• Focus: Operations, full analysis of customer service, computer POS training, ascertain whether or not bad
habits are arising - confirmation of small business practices like hiring, bookkeeping, business planning/
forecasting, etc. Attain a clear picture of cash flow.

On-Going Visits - Take place every 9-12 months

• Focus: CM support staff member is there as a small business analyst and counselor.

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RESALE 1
POINT-OF-SALE (POS) COMPUTER SYSTEM
– A powerful inventory and cash flow management tool
PRODUCT BUYING MATRIX - System automation allows new employees
and managers to quickly get up to speed on how to effectively buy the
right store inventory at the right price.
EMPLOYEE ACCOUNTABILITY - You can track each individual employee’s
sales, buys, returns, etc., and review inventory sell-through rate
performance per employee. You can now objectively measure and manage
employee productivity.
ON-LINE INTERNET REPORTING CAPABILITY - You can monitor your store’s POS remotely at high speed (via
secured internet log-on) directly from the RESALE 1 central server located in Columbus, Ohio. The Clothes
Mentor field support team has this same information to analyze and give you helpful, timely feed-back. You will
also receive vital statistics on other CM stores to benchmark against your stores performance.
EXTENSIVE OWNERSHIP/MANAGEMENT REPORTING FUNCTIONALITY - Lesser systems require enormous
amounts of your time to manually compile info from a variety of sources before analysis can even begin to take
place – RESALE 1 automates the compiling of information for you – so you now can focus your valuable time
analyzing the built-in reports, make informed decisions, and then take timely action on your business.
DAILY SUMMARY REPORTS - You will receive a daily e-mail with a simple yet effective one page “executive
summary” report of the previous days’ store performance - you can then use it to drill down further to the specific
details that interest you most.
BUILT ON A STRONG & CAPABLE DATABASE SYSTEM - RESALE1 can handle hundreds of thousands of transactions
and maintain years of valuable statistical history without bogging down. This helps you to schedule, budget, and
plan effectively.
SOFTWARE UPDATES ARE TIMELY AND READILY AVAILABLE - NO discs or complicated special instructions are
shipped to you... because it is a central database system and uses
flexible software code, updates are easily complete remotely by
the RESALE1 staff.
AUTOMATIC DATA BACK-UP AND INFO REDUNDANCY - Your
store’s POS info is stored on both your local store server and also
the RESALE1 central server located in Columbus, Ohio. This info is
additionally backed up to an off-site location. If you ever experience
a disaster at your store, this centralized back up makes it easier for
you to file insurance claims and quickly get your business up and
running again.
INSTANT ON-LINE TECH SUPPORT - The tech can see what you see and
they can quickly analyse your in-store computer.

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RESALE 1
POINT-OF-SALE (POS) COMPUTER SYSTEM (CONTINUED)
ACCESS TECH SUPPORT BY ANY STORE EMPLOYEE
- There is NO requirement that the owner make direct
contact with the tech before support can take place - this
dramatically speeds up curing a problem and provides
better service yo your store customers.
INTEGRATED, SECURE CREDIT CARD PROCESSING
- There is NO double entry into the computer and then
to an outboard swipe terminal - with RESALE1, there is
just one swipe - and with a high speed connection saving
processing time, it provides fast customer service - reduces
mistakes - and makes it much easier to reconcile the day’s
transactions.

What are the tangible benefits of our Point of Sale system?

Tobias Janke: “The system was designed and is now
developed, enhanced, and supported by people who
run stores.This makes a huge difference compared to
other systems out there. My personal favorites: Easy
export to Quickbooks, integrated high-speed credit
card processing, back room inventory management Owns 2
and reporting capabilities.” Clothes Mentor stores

Shawn and Alyssa Cox: “The buying/selling process

is kept organized and made efficient. Recordkeeping
and day-to-day reports are made easy to access
and view to judge trends and evaluate business
operations. We would not want to work without it!”
Own 3
Clothes Mentor stores

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WE PROVIDE YOU WITH A

STORE FIXTURE & DESIGN VENDOR
• A single-source provider of brand environments, displays and kiosks.
• A knowledgeable staff providing personalized service.
• An experienced, state-of-the-art production facility and construction
management program with an extensive supplier network to ensure a
project’s timely completion.

Store in-a-box package

• One-stop shopping experience: Handle ordering of fixtures, equipment,
graphics and other décor pieces.
• Coordinate delivery and installation: Everything ships on one trailer,
saving you multiple shipping charges. Nationwide installation is
available by their fixture experts.
• Warranty program: Fixtures come with a 1-year warranty for materials
and craftsmanship and a lifetime warranty on all hardware.

Fixture Provider Highlights Not Published. All rights

• Over 35 years in business • 100+ construction build outs annually

reserved. this drawing,
specification are the property of
F.M.S., Inc. No parts thereof shall
be reproduced, copied, adapted,
disclosed or distributed to others.
sold published or otherwise used
without prior written consent and
appropriate compensation to
Not P
F.M.S., Inc.
reser
spec
F.M.S

• 40+ franchise brands • 300+ fixture, equipment and decor

Visual contact with this drawing
or specification will constitute be re
evidence of acceptance of these disclo
restrictions. sold
witho
appro
F.M.S
C FIXTURE
MANUFACTURING
SPECIALIST, INC. Visua
or sp
evide

packages produced annually.

restri

C
M

MILLWORK AND FURNITURE SCHEDULE

1 NO SCALE

FIXTURE MANUFACTURING
SPECIALISTS, INC.
N1043 CRAFTSMEN DR.
SUITE 2
GREENVILLE, WI 54942
Phone: 920-757-1486

N.I.C.
FAX: 920-757-1492 N.I.C.
REVISIONS: DATE:
FIXT

REV
AS NOTED
MILLWORK AND FURNITURE PLANS AND SCHEDULES

SCALE
BY KLV
DRAWN
ARLINGTON HEIGHTS, IL

19379
JOB #
CLOTHES MENTOR
LOCATION
PROJECT

2/7/14

ELECTRIAL AND COMMUNICATIONS PLAN

1
TITLE

DATE

MILLWORK AND FURNITURE PLAN

2 1/4" = 1'-0"

WHAT MAKES THEM DIFFERENT?

1/4" = 1'-0"

NOTE: Fixture Manufacturing Specialist, Inc. (FMS) is not a licensed Engineer or Architect. Such as this drawing
can not be used for any Engineering purposes, as Electrical, Plumbing, HVAC or any other Mechanical

2
DWG NO.

specifications. It is the Owners responsibility to hire the license Engineer or Architect to coordinate the required
specifications and/or codes. Fixture Manufacturing Specialist. Inc. drawings are for schematic reference and
information only. Fixture Manufacturing Specialist, Inc takes no responsibility or liability for the information on this

TITLE
drawing.

NOTE: Fixture Manufacturing Specialist, Inc. (FMS) is not a licensed Engineer or Architect. Such as this drawing
can not be used for any Engineering purposes, as Electrical, Plumbing, HVAC or any other Mechanical

DWG NO.
specifications. It is the Owners responsibility to hire the license Engineer or Architect to coordinate the required
specifications and/or codes. Fixture Manufacturing Specialist. Inc. drawings are for schematic reference and
information only. Fixture Manufacturing Specialist, Inc takes no responsibility or liability for the information on this
drawing.

• A customized project approach with a partnership • They familiarize themselves with every aspect
mentality. of your business and your Franchise Disclosure
• All of their services are handled in-house. Document. This helps them serve your best
• Increased project continuity and quality assurance interests during build out.
results in faster response and turnaround times. • The same project support team manages your
• Their Project Managers take on many of the day- account from the beginning. This ensures a
to-day details, freeing up your time so you can smooth hand-off from the Franchisor when your
focus on promoting Clothes Mentor and building store build-out begins.
your business.
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STORE SIZE & LOCATION

• 2,500 to 3,500 square feet in suburban power-strip centers.
• Preferably near Regional Malls or Fashion Malls where
women over the age of 25 shop for high-quality, name
brand apparel, shoes, accessories, and designer purses.
• You will receive training and assistance in the Real Estate/
Site Selection process.

INITIAL INVESTMENT
Everything needed to get the “doors open,” have a working capital reserve, be stocked with opening inventory,
and ready for customers:
Estimated Range -
Low end of approximately $161,500
High end of approximately $259,000
Targeted Budget Range $225,000 to $250,000
It is likely that most stores will budget for - and land in - the targeted range listed above, but this is dependent
upon a number of variables - further detailed information is outlined in our Franchise Disclosure Document
(FDD). To get a copy of this please contact your Clothes Mentor franchise representative. (See Page 15)

FINANCING & BUSINESS PLAN

You will receive assistance in your preparation of a comprehensive business plan tailored specifically to the
RESALE business model... and coaching on how to approach and speak with leaders.

Most banks will want to see you put cash down equal to 33% of the total investment, and the provide collateral
assets equal to the amount you borrow.

If needed, you can achieve financial qualification with the assistance of a financial partner or family member.

Additionally, we have a specific SBA preferred status lender that can help you through a pre-qualification process
before you commit to opening your store. You must contact us directly to set this up.

Email: info@clothesmentor.com with your contact info - including daytime phone number or preferably call us
at 952-283-3414 during business hours.

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MANAGEMENT TEAM:
The Clothes Mentor management team has well over 80 years of franchising & retailing industry experience
in this specialized business niche called RESALE. This experience will help you to shorten your learning curve,
minimize potential costly mistakes and maximize this opportunity... your investment.

MEET OUR MANAGEMENT GROUP

PRESIDENT: RONALD G. OLSON
Ron Olson has been President and a director of NTY Franchise Company since October 2006.
Olson’s background includes starting his career at Dayton’s Department Store and held many
management positions. In 1977 he opened his own furniture store in Minnesota, which was
a Drexel Heritage prototype store. In 1988 he co-founded Grow Biz International now called
Winmark. The first franchise rights that Olson purchased and started marketing was Play It
Again Sports. Olson continued buying the Franchise rights for Once Upon A Child, Plato’s
Closet and Music Go Round. Today there over 1,000 Franchise locations.

Under the NTY Franchise Company the company bought the Franchise rights for Clothes Mentor and New Uses.
In 2013 Olson bought the Franchise company called Laptop Exchange and changed the name to Device Pitstop.
In 2014 the company opened NTY Clothing Exchange and NTY Kids. There are currently 204 stores sold and 133
stores opened under the NTY Franchise umbrella.

CHIEF OPERATIONS OFFICER: CHAD OLSON

Chad Olson has been Chief Operations Officer of NTY Franchise Company since January
2007. From May 1994 to December 2006, he held various positions for Winmark
Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for
the Once Upon a Child® concept from 1999 to 2002 and Regional Operations Manager
for the Plato’s Closet® concept from 2002 to 2006.

VICE PRESIDENT OF FRANCHISING: JAMES WOLLMAN

James Wollman has been Vice President of Franchising for NTY Franchise Company
since January 2007. From April 2004 to December 2006, he was Director of Franchising
for Dunn Bros Coffee Franchising, Inc., located in Minneapolis, Minnesota From
December 1991 to April 2004, he served in franchise sales and development for Winmark
Corporation (f/k/a Grow Biz International, Inc.), located in Golden Valley, Minnesota.

VICE PRESIDENT OF SOFT LINES: TED MANLEY

Ted Manley has been Vice President of Clothes Mentor since November 2013 and Vice
President of NTY Clothing Exchange and NTY Kids since January 2014. Ted has held many
management positions with Grow Biz International now called Winmark. He was President
of all Winmark Brands, including Once Upon a Child, Plato’s Closet, Music Go Round and
Play It Again Sports. There are currently over 1,000 locations for the four brands.

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VICE PRESIDENT OF NEW USES
AND DIRECTOR OF NEW STORE DEVELOPMENT: PETE PALMISANO
Pete Palmisano was promoted to Vice President of New Uses in 2014. Mr. Palmisano
has been our Director of New Store Development and oversees New Store Development
for Clothes Mentor, Device Pitstop, NTY Clothing Exchange and NTY Kids. Pete started
his career with Dayton Hudson department stores. Pete joined Grow Biz in 1992 with
Once Upon a Child and held many management positions. He was a Multi-Site Operations
Manager with Macy’s based in Minneapolis, Minnesota and then General Merchandise
Manager with Linder’s Greenhouse, Inc. in St. Paul, Minnesota before joining NTY
Franchise company.

DIRECTOR OF STORE OPERATIONS: BECKY GEYER

Becky Geyer has been Director of Store Operations since May 2014, overseeing
our company store operations for Clothes Mentor, NTY Clothing Exchange and NTY
Kids. Prior to joining NTY Franchise Company, Ms. Geyer was the Vice President of
Marketing for the Carlson Companies under the Carlson Wagonlit Travel Franchise
Group. Becky also held various management positions with Grow Biz International–
now called Winmark Corporation. While there, she headed up the Once Upon A
Child and Plato’s Closet franchise brands and managed the systems’ growth to over
250 locations.

DIRECTOR OF TRAINING AND NEW STORE DEVELOPMENT:

LAURA THUERINGER
Laura Thueringer has been our Director of Training and New Store Development
since April 2014. Laura started with NTY Franchise Company in 2008 with Clothes
Mentor and has held many roles including; Store Manager, New Store Opener,
Regional Operations Manager and Senior Operation Manager. Prior to joining
NTY Franchise Company Laura spent 12 years working many different positions
with Old Navy (Gap, Inc.).

DIRECTOR OF MARKETING: JENNY MANN

Jenny Mann has been the Director of Marketing since January 2013. Jenny started
with the NTY Franchise Company in 2008 with Clothes Mentor and has held many
roles including Store Manager, New Store Opener and Regional Operations Manager.
Prior to joining NTY Franchise Company Jenny worked for Old Navy (Gap, Inc.) and
Target in management roles.

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OUR 6 STEP FRANCHISING PROCESS:

1 SCHEDULE AND ATTEND A PRIVATE WEB MEETING (WEBINAR)

Our Brand Overview.

2 SCHEDULE AND ATTEND A PRIVATE WEB MEETING

PREVIEW of the Franchise Disclosure Document (FDD). The FDD contains individual store financial
performance info, detail on the investment, territory protection, overview of our training and
support, and much more… The FDD is then e-mailed to you right after the webinar.

3 FULLY REVIEW THE FDD

Review FDD and develop your list of additional questions.

4 PHONE CALL TO ADDRESS FURTHER DETAILED QUESTIONS

We hold a call to address your additional questions from your full review of the Franchise
Disclosure Document or any other questions you may have.

5 VALIDATIONS & RESEARCH

In addition to the lists provided in the FDD, you will receive personal contact information so you
can make calls and e-mail correspondences with our existing franchisees to validate the system
and our operational support.

6 DISCOVERY DAY
You can then schedule and attend our Discovery Day at our Minneapolis, Minnesota main office
and company store.

SEE NEXT PAGE TO GET STARTED >

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AFTER READING THIS FRANCHISE INFORMATION REPORT

YOU MAY WANT MORE DETAILED INFORMATION.
Please click the link below to complete our brief Initial Application.
Clothes Mentor Initial Application
This application simply helps us to see if you may be a good
fit for us - and if Clothes Mentor may be a good fit for you.
After completing this application you will get information on:
• Store financial performance history.
• Items that make up the initial investment.
• Funding/finance, training & store design/build-out.
• Initial and ongoing fees.
• Real estate/site selection support.
• Training tools & advanced programs/workshops.
• Technology tools & system support for inventory
and cash flow management.
• Advertising/marketing programs & support.
• Ongoing store operations support.

GET THE INFO LISTED ABOVE BY

SPEAKING WITH US DIRECTLY:

Direct: (952) 283-3411 | Toll-Free: (866) 261-2030, Ext 1

info@clothesmentor.com

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