FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Plato's Closet using its latest 2026 FDD coverage.
Based on 2026 FDD · 4 filings in corpus · Latest FDD: 2026
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Plato's Closet franchise shows an estimated initial investment of $356K – $468K. Reported owner economics show $133K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $25K franchise fee · 7% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Plato's Closet requires a total initial investment of $356K to $468K (midpoint approximately $412K), with an initial franchise fee of $25K. The ongoing fee burden is 7% (5% royalty plus 2% advertising fund). This is below the industry average of approximately 22.3%, leaving more margin for the operator.
According to Item 19 of the 2026 FDD, the median revenue for Plato's Closet locations is $1.2M. The implied franchisee EBITDA is approximately $133K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 32.2% with a payback period of approximately 3.1 years.
Plato's Closet operates approximately 6 franchised units. The SBA 7(a) loan default rate of 0.9% is well below the industry average of approximately 4.9%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2026 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2010-2025). 157 loans across 39 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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