Children’s Orchard benefits from the huge, and growing, market for children’s clothing, furniture, and toys. Larger than the entire market for fast food, it exceeds $200 billion dollars . . . and it’s getting bigger. Every year there are nearly 200,000 more children than the previous year. And, with parents facing increasing pressure on their disposable income, Upscale Resale presents them with a terrific value alternative.

A fast growing market is certainly important in selecting a business opportunity but it’s not the only attribute to consider. Strong gross margins and inventory turnover are key investment considerations that Children’s Orchard owners measured when making their decision to open their own Children’s Orchard store. As you learn more about the Children’s Orchard opportunity and review our documentation and talk with Children’s Orchard owners, you’ll be able to get a clear idea of what to expect from your investment and what it takes to get there.

 

Investment Required
The fee for a Children’s Orchard franchise is $25,000.

When determining the amount of capital you’ll need to invest to open and operate a Children’s Orchard business, you’ll need to take into consideration a number of factors. These include: the region of the country in which you’ll be opening the store, the size of the space you select, and the amount of any improvement allowance your landlord may provide to cover build-out expenses.

Your budget for the first few months of opening and operating your business should be in the range of $115,600-$197,000. This includes the cost of items such as:

 

Working capital needs vary significantly. Ultimately, you will need sufficient working capital to cover the business’s expenses while you build its sales to reach its cash break-even point. The higher your cash break-even, the more working capital you will want to include in your initial investment budget.

In most instances, to finance the business through a lending institution, you will need to have at least $40,000 in cash available and a personal net worth of at least $225,000. You will also need to have an outside income to cover your living expenses while the business is in its development phase.

On-Going Expenses
Children’s Orchard franchisees pay on-going royalty fees equal to 5% of gross sales or $2,500 per calendar quarter, whichever is greater; and advertising fees equal to 1% of gross sales or $500 per calendar quarter, whichever is greater.

What You Get—Training and Support
Entrepreneurs join franchise systems for a variety of reasons. One of the most common is that they don’t want to “re-invent the wheel.” Nor do we think they should. In fact, a key advantage of joining a mature franchise like Children’s Orchard is that our years of retail and franchising experience have positioned us to know what is needed, and when, to help new franchisees every step of the way. We’ve taken our 25+ years of experience, combined it with a skilled and talented support team, and given them one goal: provide the tools and guidance that Children’s Orchard owners need to open, operate, and grow their own Children’s Orchard store. Here are some of the key ways in which we meet that goal:
•    Comprehensive assistance in selecting a site and negotiating a lease.
•    A thorough two-week initial training program.
•    A “paint by numbers” process for your store’s design, décor, and merchandizing.
•    Comprehensive assistance in inventory selection, purchasing, and display.
•    Professionally developed Grand Opening program.
•    Professionally managed public relations.
•    Ongoing support through regular phone contact and store visits.
•    Sources of supply for unique “new” inventory, equipment, and supplies.
•    Sophisticated and franchisee friendly technology that includes 24/7 support through our web-based franchise network.
•    Thorough analysis of your business’s financial results.
•    Ongoing training and inventory assistance at bi-annual national meetings.

Territory
Children’s Orchard grants exclusive territories.