Children�s Orchard benefits from the huge, and growing, market for children�s clothing, furniture, and toys. Larger than the entire market for fast food, it exceeds $200 billion dollars . . . and it�s getting bigger. Every year there are nearly 200,000 more children than the previous year. And, with parents facing increasing pressure on their disposable income, Upscale Resale presents them with a terrific value alternative.

A fast growing market is certainly important in selecting a business opportunity but it�s not the only attribute to consider. Strong gross margins and inventory turnover are key investment considerations that Children�s Orchard owners measured when making their decision to open their own Children�s Orchard store. As you learn more about the Children�s Orchard opportunity and review our documentation and talk with Children�s Orchard owners, you�ll be able to get a clear idea of what to expect from your investment and what it takes to get there.

 

Investment Required
The fee for a Children�s Orchard franchise is $25,000.

When determining the amount of capital you�ll need to invest to open and operate a Children�s Orchard business, you�ll need to take into consideration a number of factors. These include: the region of the country in which you�ll be opening the store, the size of the space you select, and the amount of any improvement allowance your landlord may provide to cover build-out expenses.

Your budget for the first few months of opening and operating your business should be in the range of $115,600-$197,000. This includes the cost of items such as:

 

Working capital needs vary significantly. Ultimately, you will need sufficient working capital to cover the business�s expenses while you build its sales to reach its cash break-even point. The higher your cash break-even, the more working capital you will want to include in your initial investment budget.

In most instances, to finance the business through a lending institution, you will need to have at least $40,000 in cash available and a personal net worth of at least $225,000. You will also need to have an outside income to cover your living expenses while the business is in its development phase.

On-Going Expenses
Children�s Orchard franchisees pay on-going royalty fees equal to 5% of gross sales or $2,500 per calendar quarter, whichever is greater; and advertising fees equal to 1% of gross sales or $500 per calendar quarter, whichever is greater.

What You Get�Training and Support
Entrepreneurs join franchise systems for a variety of reasons. One of the most common is that they don�t want to �re-invent the wheel.� Nor do we think they should. In fact, a key advantage of joining a mature franchise like Children�s Orchard is that our years of retail and franchising experience have positioned us to know what is needed, and when, to help new franchisees every step of the way. We�ve taken our 25+ years of experience, combined it with a skilled and talented support team, and given them one goal: provide the tools and guidance that Children�s Orchard owners need to open, operate, and grow their own Children�s Orchard store. Here are some of the key ways in which we meet that goal:
�    Comprehensive assistance in selecting a site and negotiating a lease.
�    A thorough two-week initial training program.
�    A �paint by numbers� process for your store�s design, d�cor, and merchandizing.
�    Comprehensive assistance in inventory selection, purchasing, and display.
�    Professionally developed Grand Opening program.
�    Professionally managed public relations.
�    Ongoing support through regular phone contact and store visits.
�    Sources of supply for unique �new� inventory, equipment, and supplies.
�    Sophisticated and franchisee friendly technology that includes 24/7 support through our web-based franchise network.
�    Thorough analysis of your business�s financial results.
�    Ongoing training and inventory assistance at bi-annual national meetings.

Territory
Children�s Orchard grants exclusive territories.