Once Upon A Child Franchise FDD, Profits, Costs & Fees (2024)
Once Upon A Child, a subsidiary of Winmark Corporation, was founded in 1984 with a mission to provide a financially sustainable way for parents to keep up with their children’s rapid growth by offering a platform to buy and sell gently used children’s items.
The company, which is headquartered in Minneapolis, Minnesota, began franchising in 1992.
This franchise is the nation’s leading buyer and seller of used children’s apparel, toys, equipment, furniture, and accessories, offering an economical and eco-friendly alternative to buying new items.
The stores provide a unique shopping experience where parents can find quality, branded items at significantly reduced prices, which differentiates it from traditional retail stores.
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Initial Investment
How much does it cost to start a Once Upon A Child franchise? It costs on average between $288,000 – $421,000 to start a Once Upon A Child franchised store.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditures | Amount |
|---|---|
| INITIAL FRANCHISE FEE | $25,000 |
| FIXTURES AND SUPPLIES | $45,000 – $57,000 |
| SIGNS | $8,000 – $12,000 |
| SECURITY SYSTEM AND/OR CAMERAS | $1,500 – $4,500 |
| POINT-OF-SALE (POS) SYSTEM | $22,300 – $29,300 |
| LEASEHOLD IMPROVEMENTS | $11,000 – $21,000 |
| BUILD-OUT | $25,000 – $50,000 |
| DEPOSITS AND BUSINESS LICENSES | $5,000 – $15,000 |
| OPENING INVENTORY | $65,000 – $80,000 |
| MISCELLANEOUS PRE-OPENING EXPENSES | $35,000 – $70,000 |
| RENT – FIRST 3 MONTHS | $15,000 – $24,000 |
| ADDITIONAL FUNDS – 3 MONTHS | $30,000 – $33,000 |
| TOTAL | $288,000 – $421,000 |
Average Revenue (AUV)
How much revenue can you make with a Once Upon A Child franchise? A Once Upon A Child franchised location makes on average $1,144,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $701,000 yearly revenue for similar fashion franchises. Below are 10 Once Upon A Child competitors as a comparison:
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Once Upon A Child Franchise Disclosure Document
Frequently Asked Questions
How many Once Upon A Child locations are there?
As of the latest data, Once Upon A Child has over 400 franchised store locations throughout North America. There are no company-owned locations, as each store is independently owned and operated by franchisees.
What is the total investment required to open a Once Upon A Child franchise?
The total investment required to open a Once Upon A Child franchise ranges from $288,000 to $421,000.
What are the ongoing fees for a Once Upon A Child franchise?
For a Once Upon A Child franchise, the royalty fee is 5% of gross sales, paid weekly. Additionally, there is an advertising fee that can go up to 2% of gross sales, which is deposited into an advertising fund managed by the franchisor. The minimum advertising expenditure required is 6% of gross sales, which includes the advertising fee and cooperative or local advertising.
What are the financial requirements to become a Once Upon A Child franchisee?
To become a Once Upon A Child franchisee, the financial requirements include a minimum net worth of $300,000 and liquid capital of at least $100,000. These requirements ensure that prospective franchisees have the necessary financial stability and resources to invest in and sustain the operation of their store.
How much can a Once Upon A Child franchise owner expect to earn?
The average gross sales for a Once Upon A Child franchise are approximately $1.14 million per location. Assuming a 15% operating profit margin, $1.14 million yearly revenue can result in $172,000 EBITDA annually.
Who owns Once Upon A Child?
Once Upon A Child is owned by Winmark Corporation, a company that specializes in franchising retail businesses. Winmark operates various franchise brands, including Once Upon A Child, Play It Again Sports, Plato’s Closet, Music Go Round, and Style Encore.
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