How to Finance a Style Encore Franchise: Resale Store Costs
By Chris Cornella
A Style Encore franchise loan pays for a resale apparel store that buys its merchandise from the public. Style Encore owners purchase gently used clothing, shoes, handbags and accessories directly from local adults, then price and resell them, so the startup budget leans on fixtures, a point-of-sale system, opening inventory and cash for buying, inside a leased storefront.
This article covers what a Style Encore store costs according to the franchisor’s 2026 Franchise Disclosure Document (FDD), the fees that continue after opening, the brand’s SBA Franchise Directory status, the loan options that fit a leased retail store and what lenders want to see.
US Professional Funding is not affiliated with, sponsored by or endorsed by Style Encore or Winmark Corporation; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a franchise attorney and accountant.
Style Encore Franchise Loan at a Glance
- Initial franchise fee: $25,000 for a first store, according to the 2026 FDD; the company’s annual report lists $15,000 for additional U.S. stores.
- Estimated initial investment: $339,200 to $458,900.
- Liquid capital: $75,000 to $105,000 in cash or liquid assets.
- Net worth: $400,000.
- Royalty: generally 4% to 5% of gross sales across the franchisor’s brands, according to its annual report.
- Marketing: an annual marketing fee of $1,500, plus required advertising spending of 5% of gross sales.
- Franchise term: 10 years, with 10-year renewal periods.
- System size: 67 franchised stores in the United States and Canada at the end of fiscal 2025.
- Store size: 3,000 to 4,000 square feet.
- SBA Franchise Directory: listed under code S1635 with no additional notes.
What Is Style Encore?
Style Encore is a resale apparel franchise owned and franchised by Winmark Corporation, based in Minneapolis, Minnesota. Winmark began franchising the Style Encore brand in 2013. The stores sell gently used women’s and men’s clothing, shoes, handbags and accessories, with women’s sizes from 0 to 30 and XS to 6X and men’s sizes from 28 to 44 waist and XS to XXXL.
The buy-sell model. Unlike a traditional boutique that orders new goods from vendors, a Style Encore owner buys inventory over the counter from people in the community and then resells it. Winmark trains franchisees to evaluate, purchase and price used goods directly from customers. That makes the buying counter as important as the sales floor.
Customers and locations. Winmark describes the core customer as women and men from their late 20s and up in middle to upper-middle income households. Stores typically occupy 3,000 to 4,000 square feet in power strip centers or suburban centers near regional malls.
System size. The company’s annual report lists 67 franchised Style Encore stores at the end of fiscal 2025, after 2 openings and 4 closings during the year.
Why lenders view it the way they do. Lenders see a small-footprint retail concept from an established franchisor, with no owned real estate and a franchisor that renewed every Style Encore agreement that came due in 2025, according to its annual report. The risks they focus on are local: the lease, the trade area, the owner’s ability to build a steady supply of quality used inventory and the cash needed to keep buying.
Style Encore Franchise Costs
Initial franchise fee. The 2026 FDD lists a $25,000 initial franchise fee. Winmark’s annual report states that additional stores carry a $15,000 fee in the U.S.
Leasehold improvements and build-out. Because Style Encore stores lease their space, the build-out is modest compared with many retail concepts. The FDD estimates $10,500 to $20,000 for leasehold improvements and $35,000 to $55,000 for build-out.
Fixtures, signs and technology. Fixtures and supplies run $50,000 to $65,000, signs $11,000 to $16,000, security cameras $1,500 to $4,000 and the point-of-sale system $23,200 to $30,900. The annual report notes that franchisees must use the required POS system and buy the computer hardware from the franchisor.
Opening inventory. The FDD estimates $70,000 to $80,000 for opening inventory, the stock the store needs on its floor at opening.
Opening costs and working capital. Miscellaneous pre-opening expenses run $45,000 to $65,000, rent for the first 3 months $20,000 to $30,000 and additional funds for 3 months $40,000 to $50,000.
Total investment. The 2026 FDD estimates a total initial investment of $339,200 to $458,900. The line items are:
- Initial franchise fee: $25,000
- Fixtures and supplies: $50,000 to $65,000
- Signs: $11,000 to $16,000
- Security cameras: $1,500 to $4,000
- Point-of-sale system: $23,200 to $30,900
- Leasehold improvements: $10,500 to $20,000
- Build-out: $35,000 to $55,000
- Deposits and business licenses: $8,000 to $18,000
- Opening inventory: $70,000 to $80,000
- Miscellaneous pre-opening expenses: $45,000 to $65,000
- Rent, first 3 months: $20,000 to $30,000
- Additional funds, 3 months: $40,000 to $50,000
Winmark notes that the investment varies by market. Rent, landlord allowances and local construction costs drive much of the spread.
Ongoing Fees and How They Affect Your Loan
Royalty. Winmark’s annual report states that royalties are generally 4% to 5% of gross sales across its brands. Confirm the exact Style Encore rate in Item 6 of the current FDD.
Marketing and advertising. Franchisees pay an annual marketing fee of $1,500 and are required to spend 5% of gross sales on advertising, according to the annual report.
Technology. Owners must use the required POS system, which supports the buying process as well as sales. Review Item 6 for any recurring software or support charges.
How lenders factor these costs in. Royalty and advertising together take a meaningful share of every sales dollar before rent, payroll and inventory purchases. Lenders build those percentages into projected cash flow and want debt service covered with room to spare. Because a resale store’s cost of goods depends on what the owner pays sellers, lenders also look closely at buying discipline and gross margin assumptions.
Franchisor Requirements for New Owners
Winmark states that it qualifies Style Encore candidates on the following, which can be met individually or with a financial partner:
- Liquid assets: $75,000 to $105,000 in cash, non-retirement stocks and bonds
- Net worth: $400,000
- Verification: financial data, such as cash available, must be verified during the process
Using a loan. Winmark says candidates who do not meet these figures on their own may still qualify through a loan, often with help from family or friends, and that it works with franchise lenders on pre-qualification.
The approval process. Candidates submit an application with basic financial information and a target location, meet existing franchisees, attend Discovery Day and then receive final approval. Training begins with a first week of instruction, and Winmark helps with site selection and store preparation. The company says the whole process takes several months, so line up financing early.
Ways to Own a Style Encore
Open a new store. Most new owners open a new location in an approved territory. A new store has no sales history, so lenders underwrite the owner’s experience, the business plan and the FDD’s cost estimates. Our page on retail store start-up financing explains how we approach new stores.
Buy an existing store. An existing Style Encore comes with a customer base, sellers who already bring in goods and trained staff. Winmark must approve the transfer, and lenders can underwrite actual sales and margins. See our retail store acquisition financing options and our guide to buying a franchise resale.
Add stores. Existing owners can open additional stores, which carry the lower additional-store fee listed in the annual report.
Financing Options for a Style Encore Franchise
SBA 7(a) loans. An SBA 7(a) loan is a common fit for a store that needs fixtures, technology, opening inventory, leasehold improvements and working capital in one loan. The program maximum is currently $5 million, though program rules can change, and a single Style Encore sits well below it.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived equipment. Because Style Encore stores lease space in shopping centers, 504 rarely fits unless an owner buys the building.
Conventional term loans. An owner with strong credit and collateral, or one buying a second store, may use a conventional business loan. Terms depend on the borrower and the deal.
Equipment financing. Fixtures, racks, signs, security cameras and POS hardware can sometimes be financed separately. Learn more about retail equipment financing and leasing.
Working capital and lines of credit. Resale owners need cash to buy merchandise whenever sellers walk in, and to cover seasonal swings in what people sell and buy. A line of credit can smooth those cycles. Explore retail working capital and lines of credit.
Seller financing on resales. When buying an existing store, a seller may agree to carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules may limit how it is structured or counted toward equity.
SBA Loans for Style Encore Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally need a brand on the directory before they can make an SBA-guaranteed loan to its franchisees. A listing does not approve any borrower; it only clears the franchise relationship.
Style Encore’s listing. Style Encore appears under code S1635 with no additional notes. In plain English, the directory flags no special conditions for this brand, so an SBA lender can move to its normal review of the borrower, the store and the projections.
Application tips. Bring the FDD receipt, a site or lease proposal, a business plan with projections, a personal financial statement, tax returns and proof of the cash you will inject. Show how your projections handle buying costs, royalty and advertising. Directory status can change, so confirm it with your lender.
How Lenders Evaluate a Style Encore Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Winmark’s $400,000 net worth and $75,000 to $105,000 liquidity guidelines set a starting point. Lenders also want reserves left after the down payment. Our article on how much franchise you can afford walks through the math.
Retail and management experience. Retail, fashion or people-management experience strengthens a request. If you plan to keep another job and hire a store manager, read about financing a semi-absentee franchise.
Business plan and projections. Strong projections show how quickly the store can build inventory, the expected buying cost per item, staffing for both the buying counter and the floor, rent and the royalty and advertising percentages.
The FDD and franchise agreement. Lenders look at the 10-year term, renewal rights, transfer conditions and territory. Our article on how lenders read a Franchise Disclosure Document explains what they focus on.
The lease. The lease should run long enough to cover the loan, and lenders often ask for an assignment or landlord agreement.
Historical financials for existing stores. Buyers should provide several years of profit and loss statements, sales reports and tax returns, along with inventory and buying data.
Inventory, Fixtures and the Buying Counter
In a resale store, inventory is both the main asset and the main cash need. The FDD’s opening inventory estimate of $70,000 to $80,000 covers the stock needed at opening. After that, owners keep paying for merchandise every day as sellers bring it in.
Why it matters for financing. Used inventory has limited collateral value to a lender, so the loan is underwritten mainly on cash flow and the owner’s strength. Owners should keep a working capital cushion so they can buy quality items when they appear rather than turning sellers away.
Fixtures and technology. Racks, shelving, fitting rooms, signs and the POS system are longer-lived and easier to finance. The POS hardware must be bought from the franchisor, so confirm its cost and timing with your lender.
Multi-Unit Growth
Many resale owners grow by adding stores in nearby markets. Additional stores carry a lower franchise fee than the first, according to the annual report, and each store needs its own lease, fixtures, inventory and working capital.
Financing a second store. Once the first store has a track record, lenders can underwrite combined cash flow. Owners often finance each store separately, or consolidate debt as they grow. Lenders will want consolidated financial statements and a plan for managing more than one buying counter.
Real-World Scenarios
A first-time owner opening a new store. A former retail manager meets the liquidity guideline, signs a lease in a suburban strip center and uses an SBA 7(a) loan for build-out, fixtures, POS, opening inventory and working capital.
A buyer purchasing an existing store. A buyer acquires an operating Style Encore from a retiring owner. The lender reviews several years of sales and buying records, and the seller carries a small subordinate note.
An owner adding a second store. An owner with a stable first store opens another location in a neighboring market. The lender underwrites both stores together, and the owner finances fixtures separately to preserve cash for buying.
Common Mistakes to Avoid
- Underestimating the cash needed to buy merchandise after opening
- Signing a lease that ends before the loan matures
- Treating used inventory as strong loan collateral
- Ignoring the 5% advertising requirement in cash flow projections
- Using all available cash for the down payment and leaving no reserve
- Skipping a review of the FDD and franchise agreement with an advisor
For more pitfalls in the industry, read the retail store loan mistakes that cost owners the most.
Next Steps to Finance Your Style Encore Franchise
Step 1: Confirm you meet the guidelines. Verify that you or you and a financial partner meet the liquidity and net worth figures.
Step 2: Apply and attend Discovery Day. Submit the application, talk with current owners and attend Discovery Day.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7 and 17 with a franchise attorney and accountant.
Step 4: Talk with a financing specialist early. Ask how SBA and conventional lenders will size your Style Encore franchise loan. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Find a site and negotiate the lease. Work with Winmark on site selection and negotiate lease terms that fit your financing.
Step 6: Apply for financing. Submit your business plan, projections, personal financial statement and lease proposal.
Step 7: Close, build and open. Complete the build-out, install fixtures and POS, build opening inventory and keep working capital in reserve.
Style Encore Franchise Loan FAQs
How much does it cost to open a Style Encore?
The 2026 FDD estimates a total initial investment of $339,200 to $458,900, including the franchise fee, fixtures, POS, build-out, opening inventory, rent for the first 3 months and additional funds.
What is the Style Encore franchise fee?
The initial franchise fee is $25,000. The company’s annual report lists $15,000 for additional U.S. stores.
What royalty does Style Encore charge?
The franchisor’s annual report says royalties are generally 4% to 5% of gross sales across its brands. Confirm the exact rate in Item 6 of the current FDD.
How much liquid capital do I need?
Winmark lists $75,000 to $105,000 in cash or liquid assets and a $400,000 net worth, which can be met individually or with a financial partner.
Is Style Encore eligible for SBA loans?
Yes. Style Encore is listed on the SBA Franchise Directory under code S1635 with no additional notes. Each loan still depends on the borrower meeting SBA and lender requirements.
Can I finance equipment and fixtures separately?
Often, yes. Racks, signs, cameras and POS hardware may be financed through equipment financing, which can preserve cash for buying inventory.
Can I buy an existing Style Encore store?
Yes, with Winmark’s approval of the transfer. Lenders can underwrite the store’s actual sales, margins and buying history.
Can a first-time business owner get a Style Encore franchise loan?
Yes, if the candidate meets Winmark’s guidelines and a lender’s requirements. Retail or management experience, a solid plan and cash reserves strengthen the request.
Can I own more than one store?
Yes. Additional stores carry a lower franchise fee than the first, and lenders consider combined cash flow once the first store has a track record.
Does Style Encore offer financing?
Winmark says it works with franchise lenders on pre-qualification. Review Item 10 of the current FDD for any direct financing.
How long is the franchise term?
The franchise agreement has an initial 10-year term, with 10-year renewal periods.
Does the FDD include financial performance information?
Yes. The 2026 FDD includes an Item 19 financial performance representation. Review it in full, and rely on actual financial statements when buying an existing store.
Final Thoughts
A Style Encore franchise loan finances a store whose success depends on buying well as much as selling well. Owners who budget realistically for fixtures and opening inventory, keep cash available for daily purchases and match their lease to their loan give themselves a solid footing, whether they are opening a first store or adding another.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and retail business financing solutions.
