Children's Orchard Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$25,000
Investment required
$213,000 - $327,000
Children's Orchard: Redefining Sustainable Shopping for Families
Children's Orchard is a well-established franchise that specializes in the resale of gently used children's clothing, toys, and accessories. Founded in 1980 in Ann Arbor, Michigan, Children's Orchard was created to provide a high-quality, affordable shopping experience for families while promoting sustainability through the resale of children’s items.
The franchise has grown steadily and was acquired by NTY Franchise Company in 2014, which relocated the headquarters to Minnetonka, Minnesota. Children's Orchard started franchising shortly after its inception.
The franchise differentiates itself by offering a clean, organized shopping environment that feels more like a boutique than a typical resale store. This approach, combined with the focus on quality and customer service, has allowed Children's Orchard to build a loyal customer base among parents looking for value without sacrificing style or quality.
Initial investment
Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
| Type of Expenditure | Amount |
| Initial Franchise Fee | $20,000 to $25,000 |
| Leasehold Improvements | $21,000 to $50,000 |
| Signs | $5,000 to $9,000 |
| Fixtures and Supplies | $40,000 to $55,000 |
| Proprietary Software and POS System | $11,500 to $14,000 |
| Inventory | $30,000 to $45,000 |
| Deposits, Business Licenses and Permits | $7,000 to $15,000 |
| Legal and Accounting | $0 to $4,000 |
| Security | $2,500 to $4,500 |
| Travel Expenses to Attend Training | $4,500 to $9,000 |
| Pre-Opening Labor Expense | $10,000 to $15,000 |
| Grand Opening Advertising | $12,000 to $16,000 |
| Rent – 3 Months | $20,000 to $25,000 |
| Miscellaneous Pre-opening Expenses | $14,000 to $20,000 |
| Additional Funds - 3 Months | $15,000 to $20,000 |
| TOTAL | $212,500 to $326,500 |
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Franchise Disclosure Document
Training
Children's Orchard provides comprehensive training to its franchisees to ensure they are well-prepared to operate their stores successfully. The training program typically includes both classroom and on-the-job training components, covering various aspects of the business.
- Operational Training: Franchisees receive detailed instruction on the day-to-day operations of a Children's Orchard store. This includes training on how to manage inventory, process purchases of gently used items, and handle sales transactions. Franchisees also learn about the brand’s specific merchandising strategies to maintain the clean, organized, and boutique-like shopping environment that Children's Orchard is known for.
- Customer Service and Marketing Training: The franchise places a strong emphasis on delivering excellent customer service. As part of the training, franchisees are taught how to engage with customers effectively, build customer loyalty, and implement local marketing strategies. This includes training on the brand’s customer loyalty program and other promotional activities designed to attract and retain customers.
- Management and Administrative Training: Franchisees are also trained in the administrative aspects of running the business, including staff management, financial management, and reporting. This component of the training ensures that franchisees are equipped to handle all aspects of store management, from hiring and training staff to analyzing sales data and managing expenses.
Territory Protection
Children's Orchard does offer territory protection to its franchisees, ensuring that each franchisee has an exclusive area where no other Children's Orchard store can be established.
This territorial protection is outlined in the franchise agreement and is designed to prevent market saturation, allowing franchisees to build and maintain a loyal customer base within their designated region.
The specific size and boundaries of the protected territory are typically determined based on market conditions and are detailed in the Franchise Disclosure Document (FDD). This territory protection helps franchisees maximize their market potential and reduces the risk of direct competition from other franchisees within the brand.
