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- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$213K - $327K
- Units as of 2021
23 11.5% over 3 years
Here’s what you need to know if you’re interested in opening a Children's Orchard franchise.
Children's Orchard is a children's clothing and accessory retail resale store chain that was founded in 1980. Its parent company is New to You (NTY) Franchise Co. LLC. NTY also owns the Clothes Mentor brand, an eco-friendly and upscale resale brand that appeals to an adult population.
Since the brand began franchising in 1985, more than 20 Children's Orchards franchises have been opened around the United States.
Children’s Orchard accepts lightly used, freshly laundered wares and resells them around 70% lower than the item's original retail price. Assuming the store accepts the items, customers who bring them in are given cash or store credit.
Why You May Want To Start a Children's Orchard Franchise
The ideal Children’s Orchard franchisee is someone who enjoys dealing with people and multitasking. Children’s Orchard may also appeal to franchisees who appreciate slow fashion and environmentally-friendly resale practices.
Franchisees do not necessarily need any previous experience in the retail field to open a Children's Orchard franchise. Children's Orchard typically provides new franchisees with over one dozen hours of on-the-job training, several dozen hours of classroom training, extended ongoing support, and vast marketing support.
In addition to pre-opening training, franchisees may receive support through brand awareness, marketing, research, and construction. Franchisees with Children's Orchard may also receive hands-on training and continued support after their franchise location has opened.
What Might Make a Children's Orchard Franchise a Good Choice?
A possible advantage a Children's Orchard franchise may have over the competition is its upscale resale store nature. It says it is neither thrift nor consignment. Instead, Children’s Orchard simply says it sells lightly-worn, ready-to-wear clothes at an affordable price. Each franchise also may offer a safe area for children to play while parents and guardians shop.
Opening a Children's Orchard franchise could offer a more predictable outcome than investing in a completely new brand that may struggle to thrive in an already crowded and competitive industry.
To be part of the Children's Orchard franchise team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Children's Orchard Franchise
As you decide if opening a Children's Orchard franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Children's Orchard franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Should you be accepted into the Children’s Orchard franchise family, you can expect to undergo training while your store is being set up. To run a Children's Orchard franchise, you'll need to hire several employees. You can usually run your franchise as an absentee owner, but you'll want to ask other absentee franchisees what challenges they may have faced while doing so.
About Children's Orchard
- Franchising Since
- 1985 (37 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states: Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Wisconsin, West Virginia, Wyoming
- # of Units
- 23 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Children's Orchard franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $212,500 - $326,500
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $2,500 off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Children's Orchard has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 20.5 hours
- Classroom Training
- 49.5 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Are you eager to see what else is out there? Browse more franchises that are similar to Children's Orchard.
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