2015

NTY Clothing Exchange brings an exciting new concept to the teen and young adult resale clothing market. The experienced management team for NTY Clothing Exchange spent nearly a year researching the teen and young adult market, their shopping patterns, visiting stores, holding focus groups, and talking directly to this group of savvy customers.

Year	Franchised	Change	Company-Owned	Change	Total	Change

Investment Required

The initial fee for a NTY Clothing Exchange franchise is $20,000 for the first store purchased, and $15,000 for each additional store purchased thereafter. NTY Clothing Exchange provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.

Item	Established Low Range	Established High Range
Initial Franchise Fee	$15,000	$20,000
Leasehold Improvements	$10,000	$20,000
Fixtures and Supplies	$46,000	$66,000
Signs	$4,000	$10,000
Inventory	$40,000	$50,000
Deposits and Business Licenses	$2,000	$9,000
POS System	$10,000	$15,000
Miscellaneous Pre-Opening Expenses	$8,000	$20,000
Additional Funds (3 months)	$28,000	$48,000
Total Investment	$163,000	$258,000

Ongoing Expenses

NTY Clothing Exchange franchisees are responsible for a weekly royalty fee of 4% of total net sales, a national marketing and promotional fee of $1,5000 per year, and a yearly local advertising expenditure that is currently set at a minimum of 5% of total net sales. Other fees include an advertising cooperative payment and a renewal fee.

What You Get: Training and Support

The NTY Clothing Exchange initial training program consists of two separate programs lasting approximately 4 to 6 days each. The first is "Business Training," which covers several various aspects of business management including real estate matters and business plan development. The second training program is "Store Operations Training," which includes instruction on sales and marketing, merchandising, personnel issues, and many other topics. Both training programs take place at our training center in Minnetonka, MN.

Territory

NTY Clothing Exchange grants exclusive territories.

Note: The tables and information regarding the number of operating units, investment required, ongoing expenses, training and territory grants were taken from the company's 2014 FDD.