If you could go back in time, what business advice would you tell your younger self? Chad Olson, COO of NTY Franchise Company, shares what he has learned and more in this excerpt from USA Weekly.
Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges that face every business whether they are large or small. It is not easy running a company, especially in a fast-paced, ever-changing business world. Technology advances, new hiring strategies, and now, political changes coming with the new administration, all add to the existing business challenges that entrepreneurs, business owners, and executives have to deal with.
Maximizing profits, minimizing expenses and finding talented staff to keep things moving seem to be top challenges for both SMBs and large corporations. We have been interviewing companies from around the world to discover what challenges they are facing in their businesses. We also asked each company to share business advice they would give to a younger version of themselves.
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 is your role? What do you enjoy most about your role?
I am the COO of NTY Franchise Company. What I enjoy most about my role is working through the different challenges and opportunities that arise every day. There is constant problem solving and coaching opportunities and I am fortunate enough to hopefully make a difference. Our franchisees have invested a lot of money to open their business, achieve their goals of being their own boss and generate success. The thrill for me is having the opportunity to help them realize these goals.
Click here to read the full article on usaweekly.com.
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.
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.
NTY now offers financial incentives to veterans that choose to franchise any of its five resale brands. As part of VetFran, a strategic initiative of the International Franchise Association (IFA), NTY provides a $2,500 discount off of the franchise fee for all qualified veterans that purchase a Children’s Orchard, Clothes Mentor, Device Pitstop, NTY Clothing Exchange or New Uses franchise.
VetFran was created in 1991 as a way of saying “thanks” to veterans returning from the first Gulf War. Today, the network of franchise brands participating in the initiative has grown to more than 650, all voluntarily offering financial discounts and more to veteran franchisees. According to VetFran, more than 238,000 veterans and military spouses have found opportunities in the franchise industry as either franchisees or employees.
According to a study conducted for the IFA Educational Foundation based on U.S. Census data, one in seven franchise businesses are owned and operated by veterans of the U.S. military.
NTY Franchise Company’s resale brands offer a proven, profitable business model with many ongoing benefits—a great business option for veterans. Learn more about each of NTY’s five resale franchise options by clicking the links below.
Online sales, loyalty programs and other high-tech offerings from NTY Franchise Company’s resale brands were recently featured in the July issue of Franchising USA. Read about it now:
July 2016 cover of Franchising USA.
Resale Retail Company Wants to Use Technology to Rule Industry
Although it’s in the business of selling gently used products, one Minneapolis based franchise is hoping to bring something new to the resale retail industry in the form of technology.
NTY, which stands for ‘New To You’, is a company that owns the franchising rights to five brands in the resale retail industry:
Clothes Mentor, which buys and sells used women’s fashion;
Children’s Orchard, which buys and sells children’s items;
Device Pit Stop, for purchasing and reselling electronics;
New Uses, which specializes in buying and reselling items for the home; and
NTY Clothing Exchange, the company’s teen and young adult resale retail brand.
With its largest brand, Clothes Mentor, the company wants to introduce an online store so people can shop for used items online the same way they would shop for new items on the internet, NTY’s chief operating officer Chad Olson said during a recent interview from the company’s headquarters in Minneapolis.
A lot of new websites have popped up online over the last several years that offer the service of reselling used items to customers, Olson noted, which has changed the online resale retail landscape. With this change in the landscape comes opportunity for Clothes Mentor, which will start rolling out its online store in baby steps.
First off, customers will have the ability to ‘click and pick,’ meaning they can make a purchase at their local Clothes Mentor store and then pick it up at the physical store. From there, the online store will expand until it is an integral part of the business.
Clothes Mentor also has an app that will allow the brand to push messages out to customers, allow customers to check their loyalty program points and give them electronic receipts so they don’t have to hang onto the paper ones in case they want to return something. Eventually, Clothes Mentor’s online store will also be available through the app, but that is a ways off as the brand is just getting started with its online store.
“This is a pretty big shift in our business model, so we’re going to make sure we do it right,” Olson explained.
Clothes Mentor isn’t just using technology to give customers a better experience, though. It’s also using technology to give its franchisees a boost, too. Specifically, it’s collecting more data on customers so franchisees can give them more personalized marketing. Recent generations like Millennials appreciate this more personalized marketing, Olson observed.
Across all five of the company’s brands, it has 193 stores open with another 56 in development. Clothes Mentor, NTY’s flagship franchise, claims the majority of those locations.
“Our number one goal is to offer the customer what we refer to as ‘Ultra high value retail’,” Olson said. “The stuff that we’re selling at the store level is at a much deeper discount than anywhere else they can find it because it is gently used.”
Aside from giving people the opportunity to save money, NYT also offers people the chance to recycle their items and receive cash in return, Olson mentioned.
In the Beginning
Clothes Mentor was founded in Columbus, OH by a local couple in 2001. Aside from the Columbus store, Clothes Mentor had a licensed store in Canton, OH. Olson and his father, Ron Olson, decided to go into business together, both having retail franchising experience with another company.
When they began looking at what opportunities were out there for their own business, they found out about Clothes Mentor and noted the two stores were doing quite well. From there, the father and son negotiated the franchising rights to that brand in 2007 and have been adding to the NTY family ever since.
Energy
NTY’s franchisees come from all walks of life, from kindergarten teachers to former professional bull riders. Regardless of their background, though, NTY wants franchisees to have a strong work ethic and enthusiasm.
“We would like them to have general business acumen, but more importantly, is that they have the energy, the drive, the motivation to be entrepreneurial,” Olson said. “We’re looking for people that want to be their own boss, but who have experience in one facet or another. We want them to bring their own skill set to the company.”
Training and Support
Training involves flying new franchisees out to Minneapolis for the company’s comprehensive three week business training program. NTY trains them in finding and leasing a location, plus business plan training.
“We basically prepare them in that training to go to a bank to obtain financing,” Olson said. “So we create a three-year profit and loss and cash flow statement. So, they leave here after that first bit of training prepared to find and obtain a location and obtain financing for the business.”
Once they have a location and financing, franchisees come back to Minneapolis for two weeks of operations training, where they are taught all aspects of how to operate the business. At least one of those weeks is spent in a real store environment.
Once the new franchisee is set up, they can expect NTY to visit their location a minimum of three times throughout their first year. Once will be prior to their grand opening and will include additional training. Subsequent visits will be during the grand opening and then again 90 days after the grand opening. Each visit is to ensure new franchisees get off to the best start possible.
Franchisees will continue to get visits from the company at least once per year for business consultations, Olson added. In between visits, the company offers monthly support calls.
“The ongoing support is fairly extensive because obviously in the franchise business, if our franchisees aren’t successful, then us as a franchisor will not be successful making money,” the COO said.
Expansion
All of NTY’s brands are open to expanding anywhere in the United States. Currently, the company has a presence in 30 states and is relatively well spread out, although a tad thin on the west coast, Olson noted.
“There’s lots of franchising opportunity available, especially on the west coast,” he explained.
For entrepreneurs who embrace technology, NTY, and Clothes Mentor in particular, offer a great opportunity to get in on the ground floor of something new and exciting in the resale retail industry.
Watch this video message from Chad Olson, NTY Franchise Company’s Chief Operations Officer, and be inspired to open your own resale business! Find out what makes NTY’s five resale brands unique as well as get a feel for our company values. Check it out now:
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.
