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Clothes Bin

Clothes Bin

The total investment to open a Clothes Bin franchise ranges from $79,000 to $158,150. The initial franchise fee is $45,000. Ongoing royalties are 8% plus a 2% advertising fee.

What is the Clothes Bin franchise?

Clothes Bin is a solid waste collection franchise focused on unwanted textiles, footwear, and accessories. The brand began franchising in 2015 and is headquartered in EMERYVILLE, CA. Its model addresses textile landfill diversion, an issue tied to the approximately 81 pounds of clothing discarded annually by the average American and more than 17 million tons of textile waste entering landfills each year. Clothes Bin places collection bins in high traffic retail centers, schools, and community hubs so consumers can dispose of items conveniently and help return reusable materials to the market. The system currently includes 17 franchised units and a total unit count of 16, with zero company owned units. Clothes Bin operates within the solid waste collection category, a market valued globally at more than $1.5 trillion in 2022 and projected to exceed $2.2 trillion by 2030 at a Compound Annual Growth Rate of 5.5%. Collected materials are diverted from landfills and sold through the textile reuse and recycling chain, creating a business tied to environmental needs and franchise revenue.

The global textile recycling market was estimated at approximately $5.3 billion in 2022 and is projected to exceed $9.5 billion by 2030, with a Compound Annual Growth Rate of 7.5%. More than 70% of consumers globally consider sustainable practices when making purchasing decisions, including decisions about disposal. Fast fashion has increased textile consumption, with production more than doubling in the last two decades. Municipalities and governments are also adopting landfill diversion targets and extended producer responsibility schemes that incentivize or require textile recycling. These conditions support demand for accessible collection services. Solid waste collection is often viewed as recession resistant because it provides an essential service, and the model can produce recurring revenue through regular collection activity. Textile collection also benefits from predictable material flow and a clear value chain. Clothes Bin competes through branded and standardized bins, established logistics, and a focused collection model intended to improve efficiency and market coverage.

The initial franchise fee is $45,000. Many service based or semi absentee franchises have initial fees from $20,000 to $50,000, placing the Clothes Bin fee within that comparison range. The total initial investment ranges from $79,000 to $158,150. This investment can include the franchise fee, initial marketing, specialized collection bins, vehicle acquisition or lease, site preparation for bin placement, initial supplies, insurance, and working capital for the first few months of operations. Specific liquid capital and net worth requirements are not stated. A buyer should have enough liquid assets to cover the lower end of the initial investment and enough overall financial stability to support launch and early operations. Specific royalty payments and advertising contributions are also not stated. In the broader franchise industry, ongoing royalties commonly range from 4% to 8% of gross revenue, while national or regional advertising contributions often range from 1% to 3%. Those costs should be considered when evaluating total ownership costs, along with the initial investment and other operating expenses. The defined investment range may make Clothes Bin suitable for traditional small business financing avenues. PeerSense introduces franchise buyers to SBA and conventional lenders, but PeerSense is not a lender and does not approve or provide loans.

Daily operations center on placing, maintaining, and servicing the green Clothes Bin units. Franchisees identify high traffic sites, negotiate with property owners, and ensure that bins are regularly emptied. A dedicated route vehicle, often a box truck or a similar commercial vehicle, transports collected textiles to a central processing or storage facility. Depending on the size of the operation, that facility may be a modest warehouse or a designated sorting area. Staffing can remain lean. Many franchisees begin as owner operators who handle bin placement, collection, and logistics. As the network grows, part time or full time drivers and sorters may be added. The proprietary bins are designed for durability, security, and ease of use, with features intended to withstand different weather conditions and deter unauthorized access. Initial training covers site selection, bin installation, route optimization, collection procedures, material handling, and the recycled textile market. Training is typically conducted at the EMERYVILLE, CA headquarters or through virtual and on site modules. Ongoing support includes operating guidance, marketing assistance, proprietary software for route planning and inventory management, and updates on industry practices and textile resale trends. Franchisees typically receive exclusive geographic areas, creating a defined market without internal competition. The ability to add bins and improve routes also supports multi unit development.

PeerSense assigns the franchise a Loan Activity Score of 63, rated Moderate. The model may benefit from relatively low overhead, particularly for owner operators, because it does not require extensive retail space or a large staff. The main expenses generally include bin acquisition, vehicle operation, collection labor, and sorting labor. Revenue depends on the volume of textiles collected and the market price of those materials, which varies by quality, type, and global demand. Ongoing textile generation provides a recurring supply of material once a network of bins and routes is established.

Clothes Bin began franchising in 2015 and has grown to 17 franchised units, with a total unit count of 16 and zero company owned locations. This represents average growth of approximately two new units per year since franchising began. The pace indicates a measured approach to franchisee selection and development. It also gives the corporate team time to support existing franchisees, refine operations, and identify territories for future expansion. Developments in textile recycling, including advances in material sorting technology and rising demand for recycled content from apparel manufacturers, may support future growth. The brand's competitive position includes distinctive branded bins that provide visibility and convenience, along with a proprietary design intended to improve security and operating efficiency. Its franchise system supplies training, operating guidelines, support, route planning, and logistics methods that independent operators would need to build themselves. Clothes Bin also serves demand for sustainable waste management. Technology can support route optimization, bin monitoring such as fill levels, collection volume analysis, and communication with property partners and recycling processors. These tools are intended to improve operating precision and control costs as the business expands.

A suitable Clothes Bin franchisee may be an individual or group with an entrepreneurial approach, strong organizational ability, and an interest in sustainable business practices. Direct solid waste collection experience is not required. Skills in logistics, route management, and building relationships with property owners can help with bin placement and daily operations. The model may suit an owner operator who manages the business directly or a semi absentee owner who oversees a small team. A community minded approach is useful because the service supports local environmental efforts and gives residents a convenient disposal option. The business can support multi unit development when franchisees increase bin density and improve collection routes within exclusive territories. This lets an operator apply infrastructure, operating knowledge, and systems across a broader geographic area. Suitable territories would typically have high population density, strong retail activity, and active community engagement. The period from signing the franchise agreement to opening typically ranges from three to six months. That period allows time for training, securing bin locations, obtaining vehicles, and setting up logistics. The specific franchise agreement term is not stated. Franchise agreements in the industry commonly run from 5 to 10 years, with renewal options, giving owners time to develop their businesses and build equity.

Clothes Bin operates in solid waste collection and focuses on textile recycling, a market projected to exceed $9.5 billion by 2030. The initial investment ranges from $79,000 to $158,150, and the initial franchise fee is $45,000. The model combines collection of materials acquired at no cost with sales into the textile reuse and recycling market. Its operating structure can limit overhead, create recurring collection activity, and support expansion through additional bins and routes. Since franchising began in 2015, the brand has reported 17 franchised units, a total unit count of 16, and zero company owned operations. Clothes Bin's system includes branded collection bins, training from the EMERYVILLE, CA headquarters, operating support, route planning and inventory software, and a structure intended for multi unit growth. The service also addresses the 17 million tons of textile waste entering landfills each year.

Loan Activity Score

63/100

SBA Default Rate

5.0%

Active Lenders

7

According to its Franchise Disclosure Document or public business records, Clothes Bin has 17 locations, all owned by franchisees. Public SBA loan records show 7 lenders made 20 loans to franchisees of Clothes Bin. PeerSense calculates Clothes Bin's score as 63 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2025 Franchise Disclosure Document. To correct a figure, email the current FDD and the differing item numbers to info@peersense.com, and this page will be updated.

2025 FDD ON FILESolid Waste Collection

17 locations

Investment

$79,000 to $158,150

Franchise Fee

$45,000

Total Units

17

17 franchised

Loan Activity Score
High
63
SBA Lending
25
Lender Quality
9
Transparency
10
Reach
7
Momentum
12

Proprietary PeerSense metric

Moderate
Capital Sources
7SBA lenders

Distinct lenders in public SBA records for Clothes Bin

20

Total SBA loans

$134K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Clothes Bin

Loan Activity Score Breakdown

Growing (10 to 24 loans)

High Confidence
63out of 100
Moderate
Market Momentum12/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence9/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency10/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint7/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

5.0%

vs 7.6% peer avg

SBA Loans

20

Total Volume

$2.7M

Active Lenders

7

1 selective

States

13

vs. SBA Sector Average

+2.6%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (5.0%)
Item 19 financial data disclosed

Data Insights

Key performance metrics for Clothes Bin based on SBA lending data

SBA Default Rate

5.0%

2.6% below peer avg

SBA Loan Volume

20 loans

Across 7 lenders

Lender Diversity

7 lenders

Avg 2.9 loans per lender

Investment Tier

Mid range investment

$79,000 to $158,150 total

Clothes Bin: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2018

8 approvals. The best year on record for Clothes Bin.

Top SBA State

Texas

3 SBA financed Clothes Bin locations, the densest operator footprint.

Average Loan Size

$134K

Median $150K. Use as a sizing anchor when modeling your own Clothes Bin unit.

Lender Concentration

80%

Concentrated

Share of Clothes Bin approvals captured by the top 3 SBA lenders.

Clothes Bin's SBA lending pipeline peaked in 2018 (8 approvals). The last five fiscal years account for 45% of cumulative volume ($1.1M approved). Operator density is highest in Texas with 3 SBA financed locations. Average funded ticket sits at $134K, with the median at $150K. Lender mix is concentrated: the top three SBA lenders account for 80% of approvals. Credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$63K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$818

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Clothes Bin, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Clothes Bin

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman

This is not a franchise offering and does not constitute financial, investment, or legal advice. Data is sourced from Franchise Disclosure Documents (FDDs), public filings, and third party sources and may contain inaccuracies. The figures reflect the FDD on file for the year shown and may have been superseded or extracted with errors. PeerSense is not a financial advisor, attorney, or accountant. Always consult the brand's current FDD and seek professional guidance from a qualified attorney, accountant, or financial advisor before making any franchise investment decision. See full Terms & Conditions.