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FDD Talk 2017: What You Need to Know About the Once Upon A Child Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

by Franchise Chatter on April 9, 2017

in FDD Talk 2017: Retail Franchises, Franchise Earnings, Resale Franchise, Retail Franchise



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Once Upon a Child Franchise Photo by GrowingKidsMinistry

In this FDD Talk 2017 post, you’ll learn the following:

  • Section I – Background information on the Once Upon A Child franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Once Upon A Child franchise, based on Item 7 of the company’s 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Once Upon A Child franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Once Upon A Child’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2016 average, high, and low gross sales and average gross profit of the 316 franchised Once Upon A Child stores in the United States and Canada that had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2016, grouped by year opened (2015, 2014, 2013, 2012, 2011, and 2010 and prior)
  • 2016 average gross sales for the first, second, third, and fourth quartiles of the 316 franchised Once Upon A Child stores in the United States and Canada that had been in operation by the same franchisee or owners for the 12-month period ended December 31, 2016

Section I – Background Information

11 Things You Need to Know About the Once Upon a Child Franchise

Continuing Canadian Expansion

1.  In 2016, Once Upon A Child continued its expansion throughout Canada. The company signed a number of franchise agreements and opened several new locations in various areas of the country.

2.  The company continues to seek franchisees across Canada. There are currently 22 territories open in Canada for Once Upon A Child franchises.

Opening New Locations in Existing and New Territories

3.  In addition to its continued expansion in Canada, Once Upon A Child has been opening new locations in the United States. Last year, new stores were opened in Louisiana, Mississippi, Michigan, Ohio, and Florida. Over the summer, the first Once Upon A Child location in Alabama opened in the city of Hoover.

Ensuring All Products are Safe

4.  Although most of the merchandise sold at Once Upon A Child stores are secondhand, employees at every location are trained to ensure that everything sold at the store is safe. Employees make sure that all products meet mandatory and voluntary safety standards. Each location keeps current on all recalled or retrofitted items. When a product recall is issued, employees will search their inventory and remove any unsafe items from the shelves.

Saving Parents Money

5.  Once Upon A Child’s success can be attributed to its business model. The resale franchise not only saves parents money by offering good-quality secondhand items for sale, but each location buys, on the spot, items that meet the company’s guidelines. Unlike other resale stores, Once Upon A Child is not a consignment shop and parents will receive money upfront for any items a location wants to buy.

6.  Although the items that are in high demand vary by location, in general all Once Upon A Child stores buy and sell the following items:  baby, toddler, and young children’s clothing; toys; shoes; baby gear such as strollers, highchairs, playpens, etc.; and furniture like cribs, dressers, changing tables, and bookshelves.

7.  The stores try to buy name brand goods and some of the company’s favorite brands include:  Gymboree, Old Navy, Melissa & Doug, Playskool, Little Tikes, Mattel, Fisher Price, Hasbro, and Baby Einstein.

Company History

8.  Once Upon A Child was founded in 1984 in Columbus, Ohio. The company began franchising in 1992. Today, the company is owned by the Winmark Corporation, which owns four other resale franchises.

9.  As of 2017, Once Upon A Child has over 330 locations throughout the United States and Canada.

Entrepreneur’s Franchise 500

10.  Once Upon A Child has ranked on Entrepreneur’s annual Franchise 500 list every year in the last decade. The company’s highest rank was No. 116 in 2017 while its lowest rank was No. 362 in 2007.

11.  The company also ranked as Entrepreneur magazine’s No. 1 Children’s Retail Franchise for the third consecutive year.

Section II – Estimated Costs

  • Please click here for detailed estimates of Once Upon A Child franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Once Upon A Child’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis



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