In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on the Style Encore franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Style Encore franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Style Encore franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Style Encore’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- 2016 average, high, and low gross sales and average gross profit of the 35 franchised Style Encore Stores in the United States that had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2016, grouped by year opened (2015, 2014, and 2013)
- 2016 average gross sales for the first, second, third, and fourth quartiles of the 35 franchised Style Encore Stores that had been in operation for the 12-month period ended December 31, 2016
Section I – Background Information
11 Things You Need to Know About the Style Encore Franchise
First Canadian Location
1. In early 2017, Style Encore opened its first Canadian location in Guelph, Ontario. According to a press release, the company hopes to rapidly expand its Canadian operations. There are more than 40 territories throughout Canada that are available for franchising.
2. Style Encore is working with Don Gregor of Aurora Realty Consultants to open its Canadian locations. A deal for a second Canadian Style Encore was recently signed and will open sometime in the future in Oakville, Ontario.
3. In addition to growing the franchise in Canada, Style Encore has continued to open new locations across the United States. So far in 2017, the franchise has opened two new locations in Vermont and Indiana. Throughout 2016, new locations were opened in Pennsylvania, Iowa, Tennessee, and Ohio.
4. Several of the new Style Encore locations are being opened by franchisees who own other Winmark franchises. Franchisees of Plato’s Closet and Once Upon A Child feel that Style Encore is a great sister store for their existing franchises.
Expanding on the Resale Fashion Business
5. With Once Upon A Child and Plato’s Closet covering fashion for babies, children, teens, and young adults, Style Encore rounds out the trio of resale franchises by catering to women who are older and need more professional attire.
6. Similar to Plato’s Closet, Style Encore buys and sells the latest fashion and accessories for women. While each location carries different brands and products, in general Style Encore is looking for items from Ann Taylor, Banana Republic, Anne Klein, J. Crew, Louis Vuitton, Michael Kors, and Marc Jacobs. Style Encore sells dresses, activewear, blazers, skirts, sweaters, trousers, and blouses.
7. Style Encore tries its best to ensure that no items are counterfeit, especially handbags. High end designer products will be checked by employees for authenticity, and any counterfeit items will be rejected.
8. As with Winmark’s other franchises, sellers will be paid upfront for any products that a location wants to purchase.
9. Style Encore was founded by the Winmark Corporation in 2013 and franchising began that same year. The first location opened in Louisiana during the summer. Winmark owns four other resale franchises: Plato’s Closet, Once Upon A Child, Play It Again Sports, and Music Go Round.
10. As of 2017, there are around 50 Style Encore locations throughout the United States and one location in Canada, with more planned for the future.
Entrepreneur’s Franchise 500
11. Since Style Encore is a newer franchise, it has not yet earned a spot on Entrepreneur’s annual Franchise 500 list. However, the company did rank at No. 49 on Entrepreneur’s Top 100 New Franchises in 2016.
Section II – Estimated Costs
- Please click here for detailed estimates of Style Encore franchise costs, based on Item 7 of the company’s 2017 FDD (updated).
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Style Encore’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.