From the filings

HQ-led decisions

Clothes Mentor

Retail non food

Software purchasing decisions at Clothes Mentor are driven by its Minnesota-based headquarters, where President Ronald G. Olson and COO Chad Olson lead a 113-unit, all-franchised network. The brand mandates Shopify and QuickBooks by Intuit, creating both integration requirements and whitespace opportunities for complementary tools. With an average unit volume of $819,550, this resale-focused retail chain represents a concentrated, single-owner operator base for vendors to target.

For software vendors selling into US franchise brands.

Live signals

Total units
113
113 franchised
Unit growth YoY
0%
vs prior filing
AUV
$820K
Item 19, 2025
Royalty
4%
of gross sales
Ad fund
—
national + local
Initial fee
$25K
per unit
Investment range
$308K–$432K
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.

4%+of gross sales (FY2026)

Ongoing fees: 4% of gross sales (FY2026)Royalty 4%. Total 4% of gross sales, from the fees this filing discloses. Drawn against a 15% reference scale.

15% reference

Royalty 4%

Mandated & recommended tech

The systems vendors compete with

1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.

QuickBooks
Mandatory
AccountingItem 11

Personnel and Labor 2.0 0 Plymouth, MN, or a Planning location we designate Marketing 1.0 0 Plymouth, MN, or a location we designate Accounting Basics and 3.5 0 Plymouth, MN, or a QuickBooks location

Franchisor behaviours

What the franchisor requires

20 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 10 questions the text does not settle, which is not a no.

Accounting

Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?

Yes

Franchise agreement

You must use our designated vendor to provide bookkeeping services for your Store, and pay our designated vendor a then-current monthly fee for those services.

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We have independent access to certain operational and financial information and data produced by your POS System.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

by the fifteenth (15th) of each month monthly financial statements for the previous month that include a complete profit and loss statement and a balance sheet;

How the franchisor buys

Is there a franchisee advisory council, association or committee?

Yes

Item 11

We have an advertising council composed of franchisees that advise us on advertising policies.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

0

Item 8

During our fiscal year ended December 31, 2025, neither we nor our affiliates received any revenue as a result of Clothes Mentor® franchisees’ purchases of goods, products and services.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

We reserve the right to receive rebates or other payment and estimate that this revenue will range between 1% to 5% or more of the total purchase price of those items.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

45

Item 8

We estimate that the purchase of supplies, inventory and advertising and sales promotions materials which meet our specifications will represent approximately 45% to 55% of the total cost to operate your Store.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you want to use any unapproved material, fixture, equipment, furniture or sign, or purchase any items from any supplier that we have not approved, you must first notify us in writing and must submit to us, at our request, sufficient specifications, photographs, drawings or other information or samples for us to…

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

You acknowledge that we have the sole right to and interest in all telephone numbers and directory listings associated with the Licensed Marks, and you authorize us, and appoint us as your attorney- in-fact, to direct the telephone company and all listing agencies to transfer such numbers and listings to us;

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

To determine whether you are complying with this Agreement, we may, at any time during business hours and without prior notice to you, inspect the Store.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

We may add to, and otherwise modify, the Operations Manual to reflect changes in authorized products and services, and specifications, standards and operating procedures of a Clothes Mentor® store.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Franchise agreement

You will not open the Store for business without our prior written approval.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Franchise agreement

You will not register, as Internet domain names, any of the Licensed Marks or any abbreviation, acronym or variation of the Licensed Marks, or any other name that could be deemed confusingly similar.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

You must spend at least 5% of the Net Sales of your Store during each calendar year on “approved” local advertising and promotional activities in your local geographic area.

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Item 11

You also must participate in and contribute to the local or regional advertising cooperative (the “Cooperative”) established in the area where your Store is located.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 8

You must purchase the POS System. You will purchase the POS System directly from our designated vendor, Resale1.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Franchise agreement

hereby authorize Clothes Mentor, LLC to withdraw or deposit funds, utilizing the following account, by ACH draft or electronic debit for payment or receipt of funds relating to royalty fees, technology access fees, advertising fund contributions, or payment of goods or services.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You must use in your Store a computerized multi-purpose point-of-sale system (“POS System”) that we have selected for use in Stores.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

We have independent access to certain operational and financial information and data produced by your POS System.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Franchise agreement

We may charge you a reasonable fee for the supplemental and refresher training programs.

The filing answers no to 4 questions
  • Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
  • Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
  • Is a minimum grand opening advertising spend required?Franchise agreement
  • Must the franchisee participate in a customer loyalty or rewards program?Franchise agreement

The vendor opportunity at Clothes Mentor

Clothes Mentor operates 113 franchised resale clothing stores, all under a single, independent ownership group based in Minnesota. The brand generated an average unit volume of $819,550, with a 4.0% royalty rate flowing back to the franchisor. For software vendors, the addressable market is precisely these 113 locations, heavily clustered in Ohio (43 units), Texas (11), and Illinois (9). The operator base skews toward single-unit owners: 90 franchisees run just one location, while 22 operate between two and nine units. No franchisee controls 10 or more locations. This fragmented ownership means the franchisor’s technology mandates carry significant weight, but individual franchisees may still have discretion over non-mandated tools, creating a two-tier sales motion.

Who controls software purchasing

The buying center at Clothes Mentor is lean and concentrated at the corporate level. President Ronald G. Olson and Chief Operations Officer Chad Olson are the primary executives listed in the FDD’s Item 1. Michael D. Smith, Vice President of Strategic Planning, is also named and likely plays a key role in evaluating operational and technology initiatives. With no parent company and a small executive team, vendor outreach should be directed to this group. The absence of a named CIO or CTO suggests that technology decisions are handled by the operations and strategic planning functions, making a value proposition tied to store efficiency, inventory management, or franchisee profitability the most direct path to a conversation.

Mandated and current tech stack

The 2026 FDD mandates two core systems: Shopify and QuickBooks by Intuit Inc. Shopify serves as the e-commerce and likely point-of-sale backbone, while QuickBooks handles accounting. This creates a clear integration landscape for vendors. Any software pitched to Clothes Mentor must either enhance the Shopify ecosystem—such as inventory forecasting, customer relationship management, or marketing automation tools that plug into Shopify—or complement QuickBooks with advanced financial planning, payroll, or analytics. The mandate also signals that the franchisor is willing to enforce technology standards, which can accelerate adoption if you secure a corporate endorsement. Vendors offering tools that conflict with or duplicate these mandated systems will face an uphill battle.

Procurement, renewals, and timing

Clothes Mentor’s FDD does not include an Item 8 procurement extract, meaning the franchisor does not publicly disclose whether it uses designated suppliers, approved supplier lists, or an open procurement model. This lack of disclosure is a signal in itself: vendors should prepare to navigate an ad-hoc evaluation process rather than a formal RFP cycle. Similarly, Item 17 provides no extract on renewal terms, and the initial franchise term length is not disclosed in the available data. Without a visible contract cycle, there is no predictable window for technology stack reviews. Proactive engagement with the HQ team is the only reliable way to uncover timing. Given the small executive team, a concise, data-backed pitch that respects their time will outperform a lengthy sales cadence.

How to read the Clothes Mentor FDD

The Franchise Disclosure Document is the single most valuable research asset for any vendor evaluating this account. Item 1 lists the executives who control purchasing. Item 11 reveals the mandated technology systems—here, Shopify and QuickBooks—which define your integration requirements and competitive landscape. Item 19 provides the financial performance representation, including the $819,550 AUV, which helps you size the total addressable market and build a return-on-investment case. The operator footprint data, often found in Item 20, shows you exactly where franchisees are located and how many units each controls, allowing you to prioritize multi-unit operators for faster deal velocity. For a deeper dive into the full document and a ranked target list of franchisees, FranCloud can help you move from research to pipeline.

Questions vendors ask

Clothes Mentor, answered from the filing

The buying center includes President Ronald G. Olson, COO Chad Olson, and VP of Strategic Planning Michael D. Smith. As a small HQ team overseeing a fully franchised system, they control technology mandates and likely evaluate vendor pitches directly.
The 2026 FDD mandates Shopify and QuickBooks by Intuit Inc. for franchisees. These systems form the core operational stack, meaning any new vendor must integrate with or complement this existing infrastructure.
The system has 113 total units, all of which are franchised. There are no company-owned locations. The footprint is concentrated in Ohio (43), Texas (11), and Illinois (9), with 90 single-unit operators and 22 multi-unit operators.
The most recent FDD does not disclose a specific procurement or designated supplier structure in its Item 8 disclosures. Vendors should inquire directly about approved supplier processes during initial outreach to HQ.
The FDD does not disclose a standard initial term length or renewal window in Item 17. Without a fixed term cycle, vendors should engage HQ directly to understand contract timelines and any upcoming technology reviews.
The 2026 Clothes Mentor Franchise Disclosure Document is filed with state franchise regulators. You can review the full document in the embedded PDF viewer below to analyze Item 11 technology mandates and Item 1 executive disclosures in detail.
Source

Read the filing itself

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Clothes Mentor2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

185 operators run 225 mapped locations. 22 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit163
2–9 units22

Top states by locations

OH48
TX26
SC11
MN11
FL11

Ownership

The portfolio behind Clothes Mentor

unknown of ouam.

Related Retail non food brands

Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.