This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Once Upon a Child’s Item 19 Financial Performance Representations (2012 FDD)

The franchisee will own and operate a Once Upon a Child retail store from which the franchisee will sell quality used and new children’s apparel, toys, equipment, furniture, and accessories.

The total investment necessary to begin operation of a Once Upon a Child Store is from $221,300 to $312,600. This includes $42,300 to $47,600, which must be paid to the franchisor.

Once Upon a Child Unaudited Statement of Average Annual Sales and Gross Profit

The following statement of average annual gross sales and gross profit includes average gross sales and gross profit during the 12 month period ended December 31, 2011 as reported by franchised Once Upon a Child Stores that commenced operations in each of the years 1988 through 2010.

This statement includes information from only those Once Upon a Child Stores that had been in operation for the 12 month period ended December 31, 2011. No other Once Upon a Child Stores are included in this statement due to insufficient history of operations (not in operation for the 12 month period ended December 31, 2011).

The financial statements for these Stores are unaudited.

There were 236 franchised Once Upon a Child Stores which had been in operation for the 12 month period ended December 31, 2011. All 236 of the Stores are reflected in the average.

This financial performance representation does not include information for the 11 Once Upon a Child Stores that opened or transferred in 2011.

Statement of Average Gross Sales and Gross Profit of the 236 Franchised Once Upon a Child Stores for the Fiscal Year Ended December 31, 2011

Gross Sales means all revenues the franchisee receives from the sale of goods and services, whether by cash or by check, credit card or trade, in connection with the Store, less sales tax and customer refunds and returns.

Average Gross Profit equals Gross Sales less Cost of Goods Sold. Average Gross Profit does not reflect any expenses related to the operation of a Once Upon a Child Store other than Cost of Goods Sold.

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