People look for alternatives to “brand new” when money gets tight
The Uptown Cheapskate franchise capitalizes on this trend:
- Top 25% locations: $1.93M of sales
- Top 25% locations: $350k of net income
- Technology-driven & proven systems
Here’s how this works 👇
They buy, sell, and trade gently used designer clothing.
Think boutique shopping experience at thrift store prices.
Customers browse racks of name-brand clothes like Zara, Lulu Lemon, Nike, Crew, etc.
Everything looks new. Then they check the price tags.
$80 jeans for $25. Designer tops for $15.
The magic happens behind the scenes.
Most consignment shops rely on the owner’s “eye” for buying inventory.
Uptown Cheapskate eliminated that guesswork.
They built proprietary software that tells employees:
- Which brands to buy based on local demand
- When to markdown slow-moving items
- Optimal pricing for fastest turnover
- Real-time inventory valuation
This changes everything.
Success isn’t dependent on individual taste or experience. The technology helps drive the decision-making.
This type of system is required to scale a business beyond 1-2 locations.
The Numbers
If you know me, you know I LOVE when brands have transparent Item 19s in their FDDs
Uptown does not disappoint
They provide itemized income statements by quartile for 121 units that operated from Nov 1st 2023 to Oct 31st 2024.
The average location did $1.27M in sales with $188k in net income. Item 19 gives a full definition of “net income” with what’s included & excluded.
They provide the same income statements for the first quartile, the second, third & fourth quartiles.
The top 25% (31 stores) averaged $1.93M in revenue with $354k in net income 🔥
Start-Up Costs
Total investment is $328k to $596k.
Included in the start-up costs are: $70-90k of inventory (which you’ll sell), $40-67k of working capital, $35-150k of “lease hold improvements”, and $20k for grand opening promotion.
The franchisee fee is only $25k (one of the lowest I’ve seen for an established brand like this)
Uptown works with a number of SBA-backed banks that lend up to 70-80% of the start-up costs.
Significantly reduces cash requirements to get started.
Backstory
Uptown was started in 2008 as a family business.
Today, they have 130+ locations operating with 40 more in development.
They’re not rushing growth. They’re building the foundation right.
Uptown Cheapskate also owns a sister brand called “Kid to Kid,” which is the same model for kids’ clothing.
Franchisees are able to run both stores side-by-side to increase the lifetime value of a family.
Prime markets are filling up fast. Texas is basically sold out.
Check if your market is open
If it is, I’ll send you everything you need for due diligence plus invite you to join weekly calls with other serious franchise buyers
Cheers!
Brian
