It’s Resale
Reimagined
Who we are
Brand Overview
Children’s Orchard is not consignment and it’s not thrift, it’s an upscale resale store that offers a new and fun shopping experience for both parents and kids.
Because children so often outgrow their clothes before they are hardly worn, our stores provide a solution for customers to sell their items for CASH On-the-Spot and buy gently-new items for up to 70% off of original retail prices.
Stores feature bright colors, a clean, fresh scent and are designed to make shopping simple because items are easily accessible and meticulously organized. All clothing (boys and girls size 0 to 14), accessories, toys, and baby equipment are good quality and in great condition.
To help make shopping a bit less stressful, each Children’s Orchard has a fun and safe play area where kids can watch videos, use toys, and just hang out while their parents shop. Dressing rooms are large, so families are comfortable when trying on items to make sure they fit.
The unique resale concept of Children’s Orchard serves local communities by promoting the reuse of quality goods, which benefits the environment, and buying inventory directly from customers, which puts money back into the pockets of people within the communities. When you visit any Children’s Orchard store, you’ll always find superior merchandise and a friendly, professional staff that provides superior customer service.
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The Growth of Resale
So Why Children’s Clothing and Toys?
The average American family spends hundreds, even thousands, of dollars on apparel for their children each year. And unlike adults, who can usually fit into the same clothes and shoes for years, kids outgrow their wardrobes quickly, sometimes even before the seasons change.
Fashionable, affordable children’s apparel is always in demand. Children’s Orchard is designed to endure economic downturns. Our upscale resale concept creates loyal, repeat customers who love the brand for its deep discounts on gently new items, tremendous selection, well-designed stores, and the opportunity to earn cash for things their family no longer needs.
Our Customers
Who is Our Target Customer?
Our ideal customer is a 25- to 45-year old mother with young children. She is likely married and always busy, juggling work and an active family life. She puts her kids first and strives to provide them with the best clothing, shoes, baby equipment and toys, but also appreciates a great deal.
Our target customer wants her family to look stylish even if they outgrow their outfits in the blink of an eye. She is socially and environmentally conscious and feels that recycling her children’s clothing is a way in which she can help the cause. With such a busy schedule, she values convenience and a friendly store staff to help her get shopping tasks done efficiently.
Our Millennial customers are women ages 25 to 35. They live a very active lifestyle and are in the beginning stages of starting a family. They are very connected to family, friends and acquaintances, announcing their pregnancy, the birth of their first child and many other milestones on social media. We must have a strong social media presence in order to reach them.
This customer group has a defined sense of style, which carries over into how they dress their kids. First-time moms are looking to us to help them stock their baby’s bedroom and closet with high-quality clothing, toys and more for less. Many Millennials may still have high levels of student loan debt and are for the first time feeling the added expense of a child, so our prices suit their financial needs.
Our Products
It’s no secret that the main reason customers visit Children’s Orchard stores is because of the exceptional product within. Whether buying or selling their kids’ gently used clothing, shoes, toys and baby equipment, families know that Children’s Orchard focuses on quality.
Our inventory comes from our customers, families that have children’s items that they no longer need. They bring it to Children’s Orchard and our certified buyers evaluate each item, making sure that it fits the following criteria:
- Great condition
- Items that are current within the past few years
- Children’s sizes
- Current styles
- Free of wear, tears and stains
- Freshly laundered
- Has brand and size labels
- Contained in a basket or bag
- For toys, all parts are included
Just like they love making money by selling items to Children’s Orchard, customers love saving money by shopping at Children’s Orchard, too. That’s what resale is all about! Stores price their high-quality, name-brand merchandise at approximately 70% less than the original retail price. That great value and seeing new items on the floor every day keeps shoppers coming back. So the more product our stores buy, the more they sell!
Brand Growth
The children’s apparel market has seen amazing growth over the past few years and has been outpacing the women’s and men’s apparel markets. This growth can be attributed to many different trends. First, major designers are expanding their lines to include children’s sizes. Parents who are loyal to these luxury brands are buying them for their children. This includes the “Mini-Me” trend with matching fashions for parents and children. Social media has also played a big hand in the growth of the children’s apparel industry. Today’s children are now front and center on social media platforms like Facebook, Instagram, and Snapchat…and their parents are doing everything they can to make sure they look their best.
Children’s Orchard continues to benefit from this growth by offering options for parents to repurpose these amazing looks and get some of their hard-earned money back. At the same time, parents can purchase top-quality children’s clothing and accessories at deeply discounted prices from the typical retail mall prices.
In supplying the constant demand of growing kids, the Children’s Orchard brand is also growing. It was purchased in 2015 by NTY Franchise Company and quickly received an enormous refresh in-store design and technology. Since then, the resale stores’ high gross margins and scalable business model have received a lot of attention.
It’s no secret that kids are expensive. From clothing to toys to various equipment and furniture, parents spend many dollars each year providing their kids with items that they need and want. According to a 2017 report from the U.S. Department of Agriculture, the average cost of raising a child from birth through age 17 is $233,610. But accounting for inflation, that number is now closer to $284,570, based on project inflation for middle-income married couples. That’s quite a chunk of change—and only for one kid.
What makes Children’s Orchard a unique opportunity
Investment
How much does it cost?
The graphic below shows the average net profit, store sales and more from our top-performing stores, as reported in Item 19 of the Children’s Orchard Franchise Disclosure Document (FDD).
Inital investment range
$212,500 to $326,500*
Average store sales
$362,879**
Average top-performing sales
$599,814***
The charts below show the approximate dollar amounts you need to get the doors open, have a working capital reserve, get stocked with inventory, and be ready for customers.
Estimated Range: | |
|---|---|
Low End Approximately | $212,500* |
High End Approximately | $326,500* |
While it’s likely that most stores will land in the targeted range listed above, it’s also dependent upon a number of variables. Further detailed information is outlined in our Franchise Disclosure Document (FDD). To get a copy of this document, please contact your Children’s Orchard franchise representative.
Type of Expenditures | Purchase Option Amount |
|---|---|
Total | $212,500 – $326,500 |
Initial Franchise Fee | $20,000 – $25,000 |
Leasehold Improvements | $21,000 – $50,000 |
Signs | $5,000 – $9,000 |
Fixtures | $40,000 – $55,000 |
Proprietary Software and POS | $11,500 – $14,000 |
Inventory | $30,000 – $45,000 |
Deposits, Business Licenses and Permits | $7,000 – $15,000 |
Legal and Accounting | $0 – $4,000 |
Security | $2,500 – $4,500 |
Travel Expenses to Attend Training | $4,500 – $9,000 |
Pre-opening Labor Expenses | $10,000 – $15,000 |
Grand Opening Advertising | $12,000 – $16,000 |
Miscellaneous Pre-opening Expenses | $14,000 – $20,000 |
Rent – 3 Months | $20,000 – $25,000 |
Additional Funds – 3 Months | $15,000 – $20,000 |
FRANCHISEE REQUIREMENTS:
- Liquid Capital Available: $80,000-$100,000
- Net Worth: $400,000 or more
- Those who intend to Own and Operate their own Business
- Previous Retail Industry Experience a Plus
- Previous Management Experience a Plus
- A Love and Passion for Resale
- A Love and Passion for Fashion
- A Love and Passion for Sustainability
We’ll work with you to develop a plan that can be used as the financial and operational guide for your store during the critical start-up phase of your business.
We conduct two separate, comprehensive training programs that provide our new owners with both pre-opening and post-opening classes and hands-on experience.
We have a Small Business Administration (SBA) preferred status lender who can help you with prequalification before you commit to opening your store. This lender knows our brand, our business plan and how to process loans quickly and efficiently.
Children’s Orchard has adopted a standardized real estate process that has a clearly defined all-in-one strategy for site selection, lease negotiation and legal review
We have proven vendors already in place to get the best pricing and service on everything needed for store buildout: fixtures, equipment, interior/exterior signage, point-of-sale system and more.
The unique software that runs our proprietary POS system was specifically designed to meet the ever-changing needs of the resale business. With touch screen capabilities and a built-in buy matrix, the system assists in the buying and selling of gently used merchandise.
Our Franchise Business Consultants serve as small business consultants for our franchisees. They are responsible for ensuring success in all areas of the resale operation, including financial performance, merchandising and customer service.
Before a store even opens, we help to create excitement about it. Then we continue to provide marketing support to all stores at both local and national levels. Get more in-depth information about each of these topics within the following pages.
Support
Proven success model
Children’s Orchard comes with a proven successful business model. NTY Franchise Company has developed a clear path that will help you to avoid years of trial and error, reduce costly mistakes, shorten your learning curve and, ultimately, reach your goals sooner. The following are key benefits that come along with a Children’s Orchard franchise:
Our Team
News
We invite you to discover what it would be like to start your own successful resale business with the help of our proven techniques, training and support team.
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