How To's
The Actual Once Upon A Child Franchise Cost
As an alternative to donation or throwing out old toys and baby items, retail resale businesses have popped up to help customers and sellers to earn money selling old items. Instead of starting your own retail-resale, a franchise with an established business model and market will make it easier for you to start one. You can consider Once Upon A Child to franchise.
But how much does the franchise cost, and what other requirements should you remember as well.
Once Upon A Child Franchise Overview
Once Upon A Child is a retail resale franchise that buys, sells, and trades toys, kids’ clothing and shoes, and baby gear and furniture. Instead of throwing items away, customers can sell items to any Once Upon A Child franchise. Plus, Once Upon A Child ensures that they will sell and buy high-quality items for customers.
So far, there are stores across the United States and Canada.
The retail resale franchise is part of the Winmark Franchises group. Other brands include:
- Plato’s Closet
- Play It Again Sports
- Style Encore
- Music Go Round
Training
Franchisees undergo two training sessions. The franchisor requires franchisees to complete training before opening the store.
The first phase (New Franchisee Orientation Training) covers management and operations. In addition to that, it also discusses business plans, real estate, and buying and selling. The franchisor may also choose to talk about the service provider and other necessary topics. This phase lasts five days.
The second phase (Concept Training) encompasses financial topics. Plus, it will also examine sales, marketing, customer service, store inventory, and technical operations.
As for pre-opening training assistance, the franchisor will provide that as well. It will last up to three to five weeks. Aside from that, there is also training held the day before and day of to help the franchisee.
The franchisor may decide to conduct more training sessions in the coming months or years, but franchisees are not required to attend.
Territory
A Once Upon a Child franchise location will have an “Exclusive Territory” granted by the franchisor. Computer mapping makes it possible for them to identify and approve the territory and set up boundaries. The Exclusive Territory should cover a population of at least 75,000 to 100,000 in metropolitan areas, while it’s 50,000 for other locations. With all of these in mind, the franchisor will not approve another franchise to operate within the Exclusive Territory.
Franchise Obligations and Terms
If the franchisee is only an individual, they must run the store unless otherwise stated by the franchisor that someone else should do it for them. Aside from that, the franchisee may also have other businesses, but their Once Upon A Child franchise should become their main responsibility. But, if the franchisee is an entity, a designated owner with at least 50% of equity and voting interest should run the franchise.
The franchisor requires only approved goods and services to be sold in the store. Plus, they prohibit the sale of stolen or recalled goods such as formula and car seats. These items should comply with the US Consumer Products Safety Commission and National Highway Traffic Administration.
Aside from that, only approved promotional materials should be allowed in the store as well.
As for franchise terms, franchisees will have an initial 10-year term. But they can renew an additional 10-year period if franchisees comply with all of the requirements.
Once Upon A Child Franchise Cost
The estimated initial Once Upon A Child franchise cost is about $254,700 to $396,600. It doesn’t include advertising, marketing, and continuing fees, and other expenses that the franchisee will incur.
With regards to financing, the franchisor doesn’t offer any financing options for the initial franchise fee. The franchisor may sell or discount a note or lease to any third party, provided these third parties could have immunity based on laws.
They provide options for equipment and assets, provided that the franchisees meet credit standards. Through the help of the Wirth Business Credit, Inc subsidiary, the franchisor may lease them equipment. They may also create a leasing program for assets.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Fixtures and Supplies | $35,000 | $55,000 |
| Signs | $8,000 | $11,000 |
| Security System and/or Cameras | $1,000 | $4,000 |
| Point-of-Sale (POS) System | $20,700 | $26,600 |
| Leasehold Improvements | $11,000 | $21,000 |
| Build-Out | $18,000 | $47,000 |
| Deposits and Business Licenses | $1,000 | $17,000 |
| Opening Inventory | $65,000 | $80,000 |
| Miscellaneous Pre-Opening Expenses | $30,000 | $60,000 |
| Rent – First 3 Months | $10,000 | $17,000 |
| Additional Funds – 3 Months | $30,000 | $33,000 |
| ESTIMATED TOTAL | $254,700 | $396,600 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Continuing Fee | 5% of gross sales. |
| Marketing Fee | $1,500 per year. |
| Cooperative Advertising | Maximum amount is 5% of gross sales. |
| Local Marketing Expenses | Minimum amount, when combined with cooperative advertising expenses, is 5% of gross sales. |
| Advertising Fee | If the franchisor imposes this fee, franchisees will pay up to 2% of gross sales. |
| Transfer Fee | $10,000 |
| Audit Expenses | Cost and expenses related to audit. |
| Renewal Fee | $5,000 |
| DRS Maintenance Fee | The fee for the term of this Franchise Agreement is $1,000. Upon renewal the then-current rate for the fee will be applied. |
| Technology Fee | Currently $0. |
| Remodeling Expenses | Will vary under the circumstances. |
| Insurance | Will vary under certain circumstances. |
| Inventory | Will vary under circumstances. |
| Interest Expenses | Lesser of 18% per year or maximum rate permitted by law. |
| Lease Payment | Will vary under certain circumstances. |
| Costs and Attorney’s Fees | Will vary under the circumstances. |
Did You Know?
- Back in 2016, along with other Winmark brands, Winmark achieved $1 billion in sales. At the time, Once Upon A Child was averaging a sales volume of almost $1 million.
- As part of Winmark, Once Upon a Child helped contribute to the 150+ million secondhand items sold across brands and stores in 2018.
- Young entrepreneur Gabrielle Goodwin sold her items in 50 Once Upon A Child stores back in 2017.
- The franchise is part of the Entrepreneur 500 Franchise 2021 list. They dropped to 233 for this list; in 2020, they were ranked 110.
If you want to start a Once Upon a Child franchise, here’s how you can get started.