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Entrepreneur: Start & Grow Your Business

Children's Orchard

Children's products resale stores

Background

Founded: 1980 Franchising since: 1985
Former flight attendant Karen Lynch opened the first Children's Orchard store in 1980. Each store buys and sells used children's clothes, toys and other items, selling them for 50 to 80 percent less than retail. The first Children's Orchard franchise opened in 1985, and it now has locations across the United States.
900 Victors Way, #200
Ann Arbor, Michigan 48108
Phone:
(800)999-5437


Franchisor has 13 employee(s); 3 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2006 94 0 0 1
2005 94 0 0 1

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, United states, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming

Exclusive territories available.
Territory size: Determined by demographics

Special Programs
Children's Orchard and its franchisees sponsor the Interstate Program of the Family Builders Adoption Network (FBAN), a national non-profit organization that matches up families with abused, neglected and special-needs children.

Costs and Fees

Total investment: $115.6K-197K
Franchise fee: $25K
Ongoing royalty fee: 5%
Term of agreement: 10 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No No
Startup Costs No No
Equipment No No
Inventory No No
Accounts Receivable No No
Payroll No No

Qualifications
Net worth requirement: $225K
Cash liquidity requirement: $40K
Business Experience:
  • Customer service experience

Operations
  • 15.6% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 3 - 6
  • Absentee ownership of franchise is NOT allowed. (98% of current franchisees are owner/operators)

Training and Support

Training
  • Available at headquarters: 12 days
  • At franchisee's location: 3 days

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Grand opening
  • Internet
  • Security/safety procedures
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks
  • Regional advertising

Other marketing support
  • Monthly promotions