Franchisor Support: Initial training, on-going support, National Buyer Program, help lines, field support, annual meetings, Franchisee Advisory Council and Franchisee Business Reviews 

• On-Site Training & Training at HQ

• Bin Location Services - To Help Franchisees too busy or not interested in signing up Bin Locations

• Bin Placement Services Field Support

• E-Training

Financial strength of franchisor

• Franchisor is well capitalized through a private equity partner.

• Industry specific experience starting in 1986

• Key management includes team leadership with multiple franchisor brand experience.

Recession Resistance

• As the economy suffers, more people shop at second hand stores, which increases the demand for the contributed clothes, shoes and textiles. When the economy is improving the contributions increase as people buy more new clothes, shoes and textiles.  People gave away more clothing during Covid with more time at home.

• People are always looking for quality goods at a discounted price.

COVID Updates:

• During Covid most franchisees saw an increase of over 20% in the collection of clothing in their Bins, and some franchisees nearly doubled their collections.

• Clothes Bin's corporate team did an in-depth analysis of every franchisee's individual territory/municipality/city/county/state guidelines and provided to each franchisee their proof of Clothes Bin's recycling efforts being deemed an essential business

  • One employee in a truck, servicing a Bin, with no interaction with the general public

  • Textiles were deemed safe from an exposure standpoint of Covid

  • Semi-absentee nature ‐ Franchisees continued to manage the business with access to BLIP

  • No government authority across 15 states forced a Clothes Bin Franchisee to close down

• A franchisee during a review call in June 2020 reported to corporate that their expenses are down 50% from no royalties and BLIP, their SBA loan paid through December by the government and their renegotiated/deferred/abated rents for locations, so even if prices dropped by 40% they are more profitable.

CURRENT CHALLENGES:

• Clothes Bin did not know if people being forced by law to stay home would make clothing contributions stop. Clothes Bin pleasantly saw that contributions actually increased as our Bins are located at essential businesses, people had extra time on their hands to clean out their closets and there was no interaction with our employees (just our Bins) so the fear of Corona from an in-person contact was not a factor

• Clothes Bin let all franchisees know all information in relation to PPP & EIDL, and let them know corporate was stopping royalties and blip charges

Issues and Ambushes

• Since we are the first company to introduce textile recycling to the franchise industry, we have to educate people about the opportunity to recycle the 17 billion pounds of clothes, shoes and textiles that end up in local landfills each year.

• Charities: Are we taking away from charities? "No, in our experience people will seek out their favorite charity because they believe in their cause, and can continue to call them for home pickups, or will drop off to their locations. Charities offer tax receipts, but Clothes Bin franchise does not. All of the charities, for-profits and non-profits combined only recycle 15% of textiles, while 85% still end up in landfills."

• Clothes Bin Clearly states on each Bin "Clothes Bin is Not a Charity, Textile Contributions Made Here are Not Tax Deductible."

• We offer a convenient way for people to recycle their textiles in high-traffic, visible and easy to access locations.

• We are a recycling company helping the environment and reducing the unnecessary dumping of textiles into local landfills

• We take all clothing and textiles. We do not discriminate based on quality, brands or condition.

• We do not sort or touch the clothing. Everything is sold as-is to the buyers.

• We have clear contact information with very well constructed and aesthetically pleasing Green Bins which are regularly serviced and have permission to be in their assigned location

Hooks and Hangers

• Low cost, few employees, semi-absentee, work from home ownership.

• Simple to operate

• No Cost of Goods Sold or inventory costs; all items are contributed to the Bins for free.

• 40 Bins is the minimum package. Can add 10, 20 or more Bins to EXISTING territory and not need to pay an additional franchise fee. 

• One operating franchisee in the middle of 5 other operating franchise territories has 70 Bins in one territory (DFW)

• On-site training, members of Clothes Bin Team in your territory at least 3 times in the beginning of your franchise

• Retain your job or career, or continue running business during job transition

Training and Corporate Support

• 2 Days of Training at CBF Corporate HQ (can be remote/hybrid) 

• Service full Bins Create routes using the BLIP? 

• Technology Training on how to drive, load and unload trucks 

• Training on how to properly load trailers with clothing/textiles 

• Training on how to handle, place and move Bins 

• 1 Week of On-Site Training in Franchisee's Territory 

• Training covers all aspects of acquiring Bin locations Clothes Bin 

• Corporate Places First Set of 20 Bins in Franchisee's Territory 

• Clothes Bin Corporate Places Second Set of 20 Bins in Franchisee's Territory 

• Local Buyer Sales Training 

• Electronic and Live Webinar Based Training
  
  

Candidate Sales Process

1. Initial Call with Franchisee (one hour)

2. Fill out Clothes Bin Personal Profile Form (make sure they are financially qualified)

3. After receiving Personal Profile Form send out FDD and send back ITEM23 receipt for review prior to second call. Schedule second call.

4. 60-minute FDD review call

5. Second call (60 minute presentation, 15-30 minute conversation afterwards) with Shared Computer Screen access for Presentation

6. Discovery Day is Optional since typically a few weeks after signing the new franchisees visit corporate for training