Selecting a franchise is a big decision. That’s why it’s important to choose one that will stand the tests of time and the economy. Here are five reasons why NTY franchises are sustainable businesses:
1. Resale
All five NTY franchises are resale businesses. By its very nature, resale is sustainable. Take the company’s flagship brand Clothes Mentor, for example, which started franchising in 2007 when the U.S. economy was on the verge of a recession. Within the following few years, when other retail stores were struggling, Clothes Mentor stores were thriving. The downturn created an even bigger demand for the resale niche that has continued to grow as the economy improves.
2. Green Concept
Franchisees that partner with NTY and customers that shop our stores value the reuse of quality goods. NTY stores buy products from customers for cash on-the-spot, which puts money back into the pockets of people within the community. This, in turn, helps the planet by extending the life of great clothing, shoes, furniture, toys, electronics and more and keeps those items out of landfills.
3. Customers Love NTY Products and Services
Just like they love making money by selling items to NTY Franchise stores, customers love saving money by shopping with us, too. Our point-of-sale software features a sophisticated buy matrix, which helps NTY Franchise stores price their high-quality 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.
4. Profitability at Store Level
Our proprietary point-of-sale system also helps stores stay on course for achieving high gross margins of approximately 60%, which translates to a faster return on investment, greater profits and the opportunity for rapid growth to multi-store businesses. The following is a snapshot of the return-on-investment numbers for franchisees with our Children’s Orchard brand.
Return on investment numbers for Children’s Orchard:
5. Accessible Corporate Team and Franchisee Network
With 200 stores open across all brands, NTY has developed a strong franchise support system that starts with a highly experienced management team. In addition, we have a large and diverse network of franchisees that are easily accessible for validation during the franchising process as well as ongoing support in the form of idea sharing, franchise advisory councils (FACs), potential advertising cooperatives, comradery and more.
Click on the brand logos at the top of this page to find out more about NTY’s five franchises.
*$648,342 is the average net sales of the 5 stores included in the top 25% of all 21 Children’s Orchard® stores in operation for entire calendar year ended December 31, 2015. Of the 5 stores included in the average net sales for the top 25% of all stores, 2 stores (40%) met or exceeded the average net sales. There is no assurance, however, that you will do as well. See Item 19 of the Children’s Orchard® Franchise Disclosure Document dated April 26, 2016, for more information.
You can be very successful with just one NTY Franchise store, but our business model is easily scalable, too! Find out more about this topic in the two quick videos below featuring NTY’s VP of Franchising.
The Minneapolis/St. Paul Business Journal released its 2016 list of top-ranked franchisors in the metro area, and NTY Franchise Company landed at 16! Check out the full list below.
Check out this article from altoonamirror.com about why franchising is a smart business move. For one, it allows you to build your own business with the support of a proven system. Learn more:
Mirror photo by J.D. Cavrich.
Franchises gaining in popularity
By Walt Frank
After his family business was sold, Mike Folcarelli said he was “looking for something to do.”
So in 2014, Folcarelli opened a HoneyBaked Ham Co. and Cafe franchise in the Pleasant Valley Shopping Center.
“I thought at my age (49 at the time), this was the best way to go, instead of starting something from scratch. They have proven marketing and brand recognition,” Folcarelli said. “I looked at others (franchises), not just in the food business. I just decided on this — it just fit my lifestyle.”
Mike Burgmeier worked at the Greenwood Meadows while in high school and college.
“I have an entrepreneurial flair. I knew I always wanted my own franchise,” Burgmeier said.
Burgmeier is the franchise owner of the Chick-fil-A restaurant set to open in March at 106 Sierra Drive, the site of the former Montezuma Mexican Restaurant.
“I started to pursue this in 2013. I looked at several other types of franchises, but I wanted to be in the food retail industry. Chick-fil-A is dedicated to customer service. Their core values and my core values lined up,” Burgmeier said. “I am pleased I have the ability to bring in a franchise like Chick-fil-A, which does tremendous things for the community. It will be a nice place for people to sit down and enjoy a good product. I am excited about that.”
Between 12,000 and 15,000 new franchise businesses open every year in the United States, or between 30 and 40 per day.
There are an estimated 733,000 franchise business establishments in the U.S., meaning about 3 percent of all businesses are franchises, and franchise businesses employ about 7.6 million people directly, said John R. Reynolds, president of the Franchise Education and Research Foundation.
Reynolds said the franchising industry has averaged about 2 percent to 3 percent growth per year in the past few years.
Franchises are very popular these days.
“Franchises are popular because they provide business owners with a systematic approach to owning and operating a business that provides branding, marketing, training and support. It combines the resources of the franchisor and franchisees in the network to get a multiplier effect,” Reynolds said. “Many people buy into a franchise because they want to go into business for themselves, but not by themselves. Being part of a franchise system gives them advantages of not going it alone.”
Judy and Anthony Branda have owned the Greenwood Meadows franchise for about nine years.
“My husband had talked to the people who owned it and told them if they ever wanted to sell it, to let us know. We thought it would be a fun business to get into; when people come in for ice cream, they are happy,” Judy Branda said.
Melvin Milne has owned the Budget Blinds franchise in Altoona for nine years, and the one in State College for five years.
“I was in the construction business. I normally worked for someone else and this was a way to get started; a franchise helps you jump-start a business,” Milne said. “I’ve been in this nine years. The economy was not the greatest when I started. It was difficult at first, but the last couple of years it has been nothing but referrals and repeat business.”
David Rosen is the owner of the Griswold Home Care franchise in Hollidaysburg. He also owns two other Griswold franchises.
“I was a do-it-yourself type of person and I wanted to be more of a franchise person. I liked the idea of partnership. The company was moving in the right direction, and I felt it was a solid company,” Rosen said. “Partnerships bring some expertise and help you achieve success. For me, I really liked the mix and felt it was a good fit.”
Owning a franchise has advantages.
According to the International Franchise Association, owning a franchise allows you to go into business for yourself, but not by yourself. A franchise provides franchisees with a certain level of independence where they can operate their business. A franchise provides an established product or service that might already enjoy widespread brand-name recognition. This gives the franchisee the benefits of a pre-sold customer base that would ordinarily takes years to establish. A franchise can increase the chance of business success because it is associated with proven products and methods. Franchises also offer consumers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.
“You have a proven product and the system is in place. You don’t have to re-invent the wheel, just follow the system and try to improve on it in your local market. It comes down to hiring the right people and training them and serving the customers,” Folcarelli said.
But there can be some disadvantages to owning a franchise.
The franchisee is not completely independent. Franchisees are required to operate their businesses according to the procedures and restrictions set forth by the franchisor in the franchisee agreement. These restrictions usually include the products or services which can be offered, pricing and geographic territory, according to the IFA.
“You have to recognize that you don’t have the luxury to mess with branding and changes,” Rosen said.
Owning a franchise can take a lot of work.
“You do put in a lot of long hours. In this small business, you are the HR guy, the purchasing guy, the sales guy. There is a lot more responsibility than at a larger company. You wear all of the hats,” Folcarelli said.
It is important to do your research before purchasing a franchise.
“Do your homework on any franchise. There are good ones, there are bad ones, there are great ones and horror stories out there,” Milne said.
The first step is to develop a business plan.
“There are many franchise businesses to choose from. What are the types of businesses that appeal to you that also meet your personal and financial goals in your business plan? Lastly, get advice from a qualified franchise attorney before accepting any franchise offers or signing any franchise agreements,” Reynolds said.
“Check out the company as a whole, its financial situation, how long they have been in business, what kind of talent do they have. Talk to other franchise owners to see if they are willing to talk to you about the franchise. Talk to new ones and others who have been in it for three to five years to get their perspective on the franchise,” Rosen said. “I looked at four or five organizations; Griswold emerged for me. I liked its vision and mission of serving people.”
Reynolds said it is not difficult to get a franchise.
“There are franchises available for less than $100,000, and others for more than $1 million. It’s important to consider a franchise business that meets your personal and financial goals and plans,” Reynolds said.
With the opening of its 200th store, NTY Franchise Company continues to grow and be a leader in the upscale resale industry. Check out the great article about the company and its five innovative resale brands from the January issue of Global Business North America:
Check out this article from tbrnews.com about the family behind Children’s Orchard Manhattan Beach:
A garden of gifts at Children’s Orchard in Manhattan Beach
By Genie Davis
Children’s Orchard offers a wide variety of gifts and practical items from clothing and shoes to toys and equipment for infants through pre-teen children. Owner Carol Mintz and her two daughters buy and sell children’s apparel, shoes, toys and equipment.
“I’ve owned the business for seven years,” Mintz said. “I bought it because my daughters were having babies, and, as a grandmother, I figured I should get a head start on all that,” she laughed.
An added bonus: her daughters Cindy and Carrie were interested in the business, so the shop has become a family affair. The store was a natural fit for their interests, too.
“I grew up in retail; my dad was in retail in Philadelphia,” Mintz explained. “So I was familiar with the business, although I come from a marketing background, and my daughters also came from public relations and marketing.”
That marketing background has paid off in terms of building their business, and so does Mintz’s daughter Cindy’s FIDM fashion degree.
“She decorates the store, and she’s great at putting outfits together for customers. That’s her favorite thing to do,” Mintz said.
Children’s Orchard has a selection that pleases both shoppers and sellers.
“I think because of where we are located in Manhattan Beach, we get wonderful brands, and we are able to price them very reasonably for shoppers. It’s a good experience for both our shoppers and the people who sell to us, Mintz said. “Sellers can benefit even further with the 30 percent or more in store credit we offer them, so that they can shop here very reasonably. The whole idea is to take advantage of trading in an item that isn’t needed and buy something that is. It seems to work for everybody.”
The shop frequently offers unique, one of a kind items such as a recent sale: a child’s BBQ replete with a grille and skewers for little ones to use.
“Currently I have a $1,500 Bloom crib that converts to a toddler bed that retails for $1,500 that I’m selling for $700 in perfect condition. I also have a three-piece Pottery Barn toddler kitchen that retails for $700 available for $180, and a children’s piano that retails for $150 and I’m offering for $60.”
Among her less unique but nonetheless stellar bargain items are strollers of all types, ski clothes, and of course, holiday clothing. Mintz says the store buys holiday items all year long, and now shoppers can take advantage of items such as holiday dresses for children from 30 to 50 percent off.
“For little ones I have holiday pajamas,” she added. “Our post popular items would be clothing, that is the number one, followed by toys. We have a really good book selection, too, from board books to chapter books.”
For bargain holiday shopping, the children’s selection at Children’s Orchard is indeed blooming with possibilities. The shop is located at 2701 N. Sepulveda Blvd. in Manhattan Beach.
Check out excerpts from a linkedin.com article below, which features several franchisees from various NTY Franchise Company brands.
Why these franchisees see franchising as a gift
By Jim Judy
The holidays are here, so what better way for me to celebrate than to hear why actual franchise owners see franchising as a wonderful gift. As a franchise consultant, I’m always happy to hear how they are thriving in their franchise business, but even I was surprised by the response I received for this story.
I’ve heard from dozens of franchisees from numerous franchise systems excited to share their thoughts on what they love about franchising.
Enjoy what they have to say, and have a wonderful holiday!
[…]
“This year we feel even more thankful than previous years. By opening our Clothes Mentor franchise we fulfilled our dream of having a family business and have the opportunity to spend more time together. Being a franchise owner has given us the opportunity to save for our retirement, and provide long term job security for our son. Our #Dream2016 has come through.” – Pieter de Smidt, Clothes Mentor of Sugarland, TX
“I’m thankful for franchising! Combining my entrepreneurship passion with best practices, systems and tools from a proven franchiser is a winning combination. 2016 was a great year!” – Bradley R. Swenson, Device Pitstop of Maple Grove
“We are thankful for a franchise with a proven track record to give us the confidence to open multiple, very successful businesses. By following the “resale-retail recipe” provided, we are not forced to build a business model from the ground up, but to utilize the wealth of knowledge our franchisor has handed to us to create our own businesses in our market and have the freedom to be creative and find ways to improve even more on operating our own individual stores.” – Shawn & Alyssa Cox, Clothes Mentor Charlotte – Midtown, NC, Charlotte – Arboretum, NC & Rock Hill, SC
“Being part of a franchise provides a broader opportunity for success, and gives an established brand to build on. I’m thankful for the partnership, resources, technology, and ongoing support from the franchise I am partnered with.” – Shasta Webber, Children’s Orchard Huntersville, NC
“Franchising give me the flexibility to make more family time. There are no clocks to punch and no supervisor to decline vacation requests.” – Brad Peterson, Device Pitstop Burnsville, MN
“After just spending 90 minutes with my franchise operations manager, I feel like I have a focused business strategy to wrap up 2016…and he planted seeds for me to start developing my 2017 business goals. I am thankful for having a built-in, business-savvy coach who wants us to succeed as much as we do.” – Chris Barnett, Clothes Mentor Springfield, PA
From opening their stores to growing their businesses, find out what franchisees appreciate most about working with NTY Franchise Company:
“I’m thankful for franchising! Combining my entrepreneurship passion with best practices, systems and tools from a proven franchisor is a winning combination. 2016 was a great year! Our great DP Pit Crew worked incredibly hard with our wonderful customers, helping them to economize and optimize their digital life (computers, tablets and cell phones).” – Bradley R. Swenson, Device Pitstop Maple Grove
“Being a franchisee with NTY’s Clothes Mentor fulfills my dream of being my own boss while giving me the safety net of industry experts who are just as invested in my success as I am. I couldn’t imagine opening a business any other way.” – Jennifer Walters, Clothes Mentor Torrance
“This year we feel even more thankful than previous years. By opening our Clothes Mentor franchise, we fulfilled our dream of having a family business, and have the opportunity to spend more time together as well. Being a franchise owner has given us the opportunity to save for our retirement and provide long-term job security for our son. Our #Dream2016 has come through.” – Pieter de Smidt, Clothes Mentor Sugarland
“Being part of a franchise provides a broader opportunity for success, and gives an established brand to build on. I’m thankful for the partnership, resources, technology and ongoing support from the franchise I am partnered with.” – Shasta Webber, Children’s Orchard Huntersville
“There are so many things we love about franchising. One aspect is that we have a blueprint of how to run our business. We have other people in a like businesses to learn from and share ideas. We feel like we have an extended family in our relationships with our franchise companies and our employees. We could not do everything alone.” – Randi Zied, Clothes Mentor North Olmsted, Strongsville and Mayfield Heights
“We are thankful to show our children (ages 9-16) how to own a business. We’re thankful they’ll see how much hard work is required, how important good character is and what a blessing it is to work together as a family!” – Kathy and Lane Bosley, Clothes Mentor Tyler
“Franchising gives me the flexibility to make more family time. There are no clocks to punch, no supervisor to decline vacation requests.” – Brad Peterson, Device Pitstop Burnsville
“We are thankful for a franchise with a proven track record to give us the confidence to open multiple, very successful businesses. By following the ‘resale-retail recipe’ provided, we are not forced to build a business model from the ground up, but to utilize the wealth of knowledge our franchisor has handed to us to create our own businesses in our market and have the freedom to be creative and find ways to improve even more on operating our own individual stores.” – Shawn and Alyssa Cox, Clothes Mentor Charlotte Arboretum, Charlotte Midtown and Rock Hill
“I have owned several startup businesses (none of which were franchises) and it is a lot of work, more than people may think. I have now just started a Device Pitstop franchise and I am very thankful because they have taken every process and made it flawless. While I own my own business, I have a team of experts to lean on at all times. Priceless!” – Matt Paperi, Device Pitstop Overland Park
“After just spending 90 minutes with my franchise operations manager, I feel like I have a focused business strategy to wrap up 2016. And he planted seeds for me to start developing my 2017 business goals. I am thankful for having a built-in, business-savvy coach who wants us to succeed as much as we do.” – Chris Barnett, Clothes Mentor Springfield and West Chester
“People are always searching for that thing in life that provides them the opportunity to succeed. Franchising allows you to obtain independence through the fruits of your own efforts.” – Mike Thorn, Clothes Mentor Cordova
“I am thankful for the continued support from NTY with system updates and resources. Support like this is critical for the franchisees to keep up with and stay ahead of new technology. It also allows us time to focus on our store and marketing.” – Joe Ferrazzo, Device Pitstop Maplewood
“I’m thankful for deciding to open a franchise, because name recognition and corporate support from experienced franchisors, are two important factors to a successful business.” – Karla Fitzpatrick, Clothes Mentor Burnsville
“We are thankful to have found the opportunity to own a franchise CM store. Because of this, we moved back to our home state of Oklahoma to be near family, which encouraged more family to move here, too. We doubt this would have happened in the three years we’ve been here, without this major life change.” – Mike and Melanie Harris, Clothes Mentor Edmond
“We are thankful to have an opportunity to buy quality, stylish clothing from customers and then sell them at affordable prices.” – Jennifer Small, Clothes Mentor Portage
“They make the hard stuff easy!” – Scott Stansbury, Device Pitstop Anchorage
“I’m thankful that our franchise is here in our community for all women and all sizes. Our Clothes Mentor has helped women create new styles and a new sense of confidence when it comes to their fashion needs. We are thankful to be a part of that new confidence.” – Michael and Wyndy Reese, Clothes Mentor Jonesboro
“I am thankful that our Black Friday Sale is completed, on the Saturday before official Black Friday. It was very successful thanks to creative thinking of our corporate staff. “ – Don Leventhal, Clothes Mentor Bloomington
“We operate in a crowded market and I am not sure how I would break through if I didn’t have marketing support from the franchise. I wouldn’t be able to rise above the noise. From professionally designed materials to creative sales strategies, I am thankful that I have the franchise marketing support and I am not spending hours—no, days—trying to do it all myself.” – Chris Barnett, Clothes Mentor West Chester and Springfield
Check out the article below from franchising.com highlighting NTY Franchise Company’s 200th store: Device Pitstop Newport News!
Photo from NTY Franchise Company
NTY Franchise Company Opens Their 200th Store
National Leader of Upscale Resale Brands Will Celebrate 200th Store Opening in November
NTY Franchise Company, a national upscale resale franchise headquartered in Minnetonka, Minnesota, today announced the opening of the company’s 200th store on Thursday, November 10 in Newport News, Virginia. Device Pitstop, NTY Franchise Company’s mobile and electronic device resale franchise, had the honor of achieving the company milestone when they opened their doors on Thursday morning.
“We’re very excited to open our 200th store in Newport News, Virginia this November,” NTY Franchise Company COO Chad Olson said.
“The opening signifies our continued growth and commitment to meeting the modern consumer’s need for high-quality clothing, devices and other items at an affordable price.”
NTY Franchise Company was founded in 2006 by President Ron Olson. Their first brand launched with the purchase of franchising rights for Clothes Mentor, a women’s resale store that today features more than 140 outlets. In 2011, NTY expanded its offerings by purchasing the franchise rights for New Uses, a resale store for home goods such as furniture, artwork and more. Expansion continued in 2013 when the company purchased Laptop Exchange and renamed it Device Pitstop, a franchise that buys, sells and repairs personal electronics.
In 2014, the company developed two new brands from scratch — NTY Kids, for newborns through preteens, and NTY Clothing Exchange for teens and young adults. A year later, NTY Franchise Company purchased an existing kids’ resale store, Children’s Orchard, and merged it with NTY Kids. The name Children’s Orchard stuck, and the new total of 30 stores were revamped to fit the modern design and concept developed by the NTY team.
About NTY Franchise Company
Founded in 2006 by Ron Olson, NTY Franchise Company is the gold standard in resale franchising companies. NTY franchises five brands, all with a different focus: Clothes Mentor, Children’s Orchard, Device Pitstop, New Uses, and NTY Clothing Exchange. The brands are all resale-based and cover women’s designer fashions, children’s apparel and accessories, furniture and household goods, electronic sales and repair, and clothing for teens and young adults. All are great business opportunities with cutting-edge technology, unmatched support, and lucrative resale franchises. NTY Franchise Company has helped individuals to establish resale stores throughout the United States in many communities, and it has territories available to develop nationwide.
What makes NTY one of the 50 fastest-growing private companies in the Twin Cities area? Find out in this excerpt from an article by the Minneapolis/St. Paul Business Journal:
We Asked Chief Operating Officer Chad Olson:
What’s one business decision you made in the past three years that’s been critical to your firm’s growth?
Putting as much information onto our franchise development website as possible. In the past this was taboo, it was normal to hold your cards close. In today’s world information is king. If you want to sell franchises you need to have your information front and center.
Photo by Nancy Kuehn and courtesy MSPBJ; Chad Olson (left) and Ron Olson (right).
Learn more about the Fast 50 list in this excerpt from a note about the project by editor Kim Johnson:
Fast 50 2016 Editor’s Note
It isn’t the easiest task to get revenue figures from private companies. Our reporters are frequently told, “We’re a private company. We do not share revenue information.”
It’s even more of a stretch to ask them for actual financial statements.
However, each summer the Business Journal doggedly searches the Twin Cities 24-county metro area to find the region’s fastest-growing private companies. We look for independently owned, privately held, for-profit businesses that are headquartered here. We look for year-over-year revenue growth from the three most recent fiscal years. We look for companies with at least $1 million in revenue from the first of those three years.
And then we require them to send in three years of financial statements that have been audited or reviewed by an independent accountant.
And those documents go to our own accounting partner for further verification and number crunching.
It’s a lot to ask of private companies used to keeping their revenue numbers close to the vest. But it’s imperative we ask this of each company submitting a nomination for our annual Fast 50 awards. Everyone is held to the same standards to ensure the integrity of this list, which showcases some of the state’s best-in-class enterprises.
These companies aren’t just growing their bottom lines. They are creating jobs at extraordinary rates. They are providing growth opportunities for the businesses that serve them. They are boosting Minnesota’s economy.
So thank you to all the companies that submit nominations for this project — not just for the above, but for being willing to jump through the hoops we ask you to in order to produce this awards publication.
Michelle Vaudrin is the Senior Director of Operations for Children’s Orchard and Clothes Mentor. Before joining Children’s Orchard in 2016, she worked in leadership roles for Burlington, American Eagle, and Macy’s.
Michelle attended the University of Wisconsin-Stout with a Retail Merchandising and Business Administration degree. She brings an extensive background in training in strategies, merchandising, customer service, and multi-unit store operations to the team.
Jenny Mann
Vice President of Operations | Executive Director of IT
Jenny Mann is the Vice President of Operations for Clothes Mentor and Children’s Orchard. In January of 2020, Jenny also took on the role of Executive Director of IT, overseeing BST, our Point of Sale system, and the e-commerce platforms for both brands. Prior to this, Jenny was the Director of Marketing for NTY Franchise Company since January 2013. Jenny started with the NTY Franchise Company in 2008 with Clothes Mentor and has held many roles, including; Store Manager, New Store Opener, and Regional Operations Manager. Before joining NTY Franchise Company, Jenny worked for Old Navy (Gap, Inc.) and Target in management roles.
Chad Olson
Chief Operations Officer
Chad Olson has been Chief Operations Officer of NTY Franchise Company since January 2007. From May 1994 to December 2006, he held various positions for Winmark Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for the Once Upon a Child concept from 1999 to 2002, and Regional Operations Manager for the Plato’s Closet concept from 2002 to 2006.
Sean Marrs
IT/Tech Administrator
IT/Tech Administrator
Marissa Stacy
Jr. Graphic Designer
Jr. Graphic Designer
Ashlyn Aarness
Social Media Specialist
Social Media Specialist
Ashley Huebner
Director of Marketing
Ashley Huebner oversees Children’s Orchard’s marketing and advertising efforts to drive sales, build brand awareness, and lead the planning on how to market the brand effectively. She leads creative initiatives by driving the brands’ vision in aesthetics, tone, and trends to elevate our brand position as a leader in the resale category.
Ashley joined the Children’s Orchard team in 2015. Ashley has 10+ years of Graphic Design experience. Ashley holds a strong background in design, user experience, and a passion for creativity. She holds a BA degree in Advertising and Art.
Sarah Primmer
VP of Finance & Human Resources
Sarah Primmer is the Vice President of Finance and Human Resources for NTY Franchise Company. She joined the company in January 2014. Prior to joining NTY, Sarah spent over 25 years as the controller and business manager of a local sales and marketing firm calling on Target stores.
