About Preloved Franchise
Preloved is an upscale, clean, organized boutique thrift store franchise.
Franchisees operate retail locations where third-party sellers rent booths to sell their new and used items to the public.
Store revenues are generated from booth rentals and from a share in the sales made at the location by both the franchisee and third-party sellers.
Preloved Franchise Cost & Fees
Minimum Investment
$115K
Average Investment
$201K
Maximum Investment
$287K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Revenue (2% for the first 6 months) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $2,500 per month (may increase up to $4,000 per month with 60 days notice) | National brand fund |
| Total Investment Range | $115,000 – $286,500 | Includes build-out, inventory, working capital |
The investment range of $115K–$287K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Revenue (2% for the first 6 months)) and marketing fee ($2,500 per month (may increase up to $4,000 per month with 60 days notice)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $35,000 | $35,000 |
| Initial training | $1,500 | $7,500 |
| Real estate improvements | $10,000 | $100,000 |
| Rent (3 months plus security deposit) | $7,500 | $37,500 |
| Equipment, furniture, fixtures, décor, and supplies | $20,000 | $30,000 |
| POS system, computer hardware, and software | $7,700 | $10,500 |
| Signs | $5,000 | $12,000 |
| Miscellaneous opening costs | $1,000 | $9,000 |
| Opening inventory | $300 | $500 |
| Grand opening assistance | $3,500 | $3,500 |
| Grand opening advertising | $2,000 | $3,500 |
| Additional funds (3 months) | $21,500 | $37,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 10% of then-current franchise fee |
| Technology Fee | $250 per month |
| Audit Fee | Cost of audit if understatement of 2% or more of gross revenue |
| Late Charges | $25 per day (up to 2x total amount owing per instance) |
| Non-Sufficient Fund Fees | $50 per bounced check or insufficient draft |
| Interest on Late Fees | 18% interest or maximum rate permitted by state law, whichever is less |
| Sales or Use Tax | Sum equal to tax imposed |
| System Non-Compliance Fines | $250 first violation; $500 second; $750 third and subsequent |
| New Operating Principal or Manager Training | $2,000 per person, per day |
| Additional Training | $500 per day, per person |
| Rescheduling Fee | $500 |
| Conference or Seminar Fee | $500 to $1,500 per person |
| Interim Management Fee | $500 per day, per person |
| Relocation Fee | $5,000 |
| Non-Compete Violations | $1,000 per day for each competing business |
| Transferee Training Fee | $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 to 4 days |
| Classroom Training | 10-16 hours |
| On-the-Job Training | 5-8 hours |
| Training Location | Utah County or Salt Lake County, Utah at a company-owned location |
| Additional Training | Additional training available at $500 per person per day depending on availability. Conferences and seminars may be held regionally; attendance mandatory for operating principal at $500-$1,500 per person. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Based on target population of approximately 100,000 people |
| Description | Exclusive territory where franchisor will not establish another franchise, affiliate, or company-owned unit using the Preloved trademark. Size set based on population density, business base, metropolitan vs rural area. Boundaries set by zip code, streets, highways, county lines, designated market area, radius, or other recognizable demarcations. Franchisor reserves right to adjust boundaries if population increases by more than 50,000. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years |
| Renewal Fee | 10% of the then-current franchise fee |
| Renewal Conditions | Must not be in default, must have complied with material terms throughout initial term, must have timely paid all monetary obligations, no pending litigation that could have material adverse effect, must give written notice of intent to renew 6-12 months prior to expiration, must modernize franchise business to then-current standards, must sign then-current successor franchise agreement which may have materially different terms, and must sign a release. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Must not be in default, all fees current, new franchisee qualifies under then-current standards, transfer and training fees paid, purchase agreement approved, training for transferee arranged, new franchisee signs then-current franchise agreement, release signed by transferor, must coordinate coverage during transferee training. Franchisor has 60-day right of first refusal. |
| Termination for Cause | Franchisor must have cause. Non-curable defaults include insolvency, bankruptcy, repeated breaches (3+ times in 12 months), unauthorized use, misrepresentation, abandonment, unauthorized transfer, false reporting, crimes, unauthorized competition, lease termination, failure to obtain financing. Curable defaults: 24 hours for public safety; 5 days for unauthorized closure, failure to use designated accounts, failure to maintain insurance; 15 days for failure to pay, failure to report, lease default notice, acts in contravention; 30 days for other breaches. |
| Non-Compete Period | 3 years |
| Non-Compete Details | No competing business for 3 years within former territory, within 30 miles of territory, or within 20 miles of any other Preloved franchise, company, or affiliate-owned business. If you compete within the restrictive period, the non-compete period is tolled and extended. For 3 years from termination, cannot divert or attempt to divert any business or customer from franchisor, affiliates, or franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Operating principal must personally participate in the direct operation and supervision of the franchise business but is not required to work a certain or minimum number of hours unless acting as full-time manager. Must work sufficient hours to operate the franchise or supervise managers, maintain inventory, and employ adequate personnel. A manager must be available during all regular business hours. On-premises supervision by the operating principal is recommended but not required. |
| Required Suppliers | Preloved, LLC is the only approved supplier for the Preloved platform software. Other items (furniture, marketing, tagging, POS system, software, snacks, clothing, products for sale, cameras, hardware, insurance) must meet franchisor specifications or come from approved suppliers. |
| Supply Restrictions | Franchisees must purchase or lease items according to franchisor specifications and/or from approved suppliers. Cannot deviate without prior written consent. 60% to 80% of overall purchases in opening and operating the business must come from required/approved sources. |
| Franchisor Revenue from Suppliers | In the last fiscal year ending December 31, 2023, the franchisor did not collect any money or obtain any revenues from the sale of products and services to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Preloved Franchise, LLC does not offer direct or indirect financing and does not guarantee notes, leases, or obligations. |
Preloved Franchise Earnings — Item 19
Average Revenue
$559K
Median Revenue
$567K
Revenue Range
$358K – $750K
Sample Size
3 units
Past financial performance does not guarantee future results. Individual results will vary.
Preloved Litigation & Risk Flags
Clean Litigation RecordPreloved has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Preloved System Growth
Total Units
7
Franchised
2
Company-Owned
5
Preloved currently operates 2 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 1 | 0 | 1 |
| 2022 | 2 | 0 | 3 |
| 2023 | 4 | 0 | 7 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$80K
Net Income
$10K
Total Assets
$120K
Preloved Franchise — FAQ
The total investment to open a Preloved franchise ranges from $115,000 to $286,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Preloved charges a royalty fee of 4% of Gross Revenue (2% for the first 6 months) of gross sales, plus a $2,500 per month (may increase up to $4,000 per month with 60 days notice) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Preloved Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Preloved to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Preloved franchise owners report average revenue of $559K and median revenue of $567K. This is based on a sample of 3 units. Past performance does not guarantee future results.
Preloved has been franchising since 2022. The FDD shows an investment range of $115,000-$286,500, a 4% of Gross Revenue (2% for the first 6 months) royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $115,000 to $286,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Preloved and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Preloved or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com