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

• Section I – Estimated initial investment (franchise costs) for a Once Upon A Child franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Once Upon A Child franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Once Upon A Child outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Once Upon A Child franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Once Upon A Child’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average, median, high, and low gross sales and average and median gross profit for the 385 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 25, 2021, grouped by year opened (2020, 2019, 2018, 2017, 2016, and 2015 and prior)

• 2021 average, median, high, and low gross sales and average and median gross profit for the first, second, third, and fourth quartiles of the 385 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 25, 2021

• number and percentage of 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 25, 2021, grouped by range of gross sales ($0 to $250,000; $250,001 to $500,000; $500,001 to $1,000,000; $1,000,001 to $2,000,000; $2,000,001 to $3,000,000; and greater than $3,000,000)

• Section VI – Key ratios, comparables, computations, and analyses for the ABC franchise opportunity (exclusive content for Platinum subscribers)

Section I – Once Upon A Child Franchise Costs

• Once Upon A Child franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $25,000
• Fixtures and Supplies:  $40,000 to $55,000
• Signs:  $8,000 to $12,000
• Security System and/or Cameras:  $1,500 to $4,000
• Point-of-Sale System:  $25,200 to $32,400
• Leasehold Improvements:  $11,000 to $21,000
• Build-Out:  $20,000 to $50,000
• Deposits and Business Licenses:  $3,000 to $15,000
• Opening Inventory:  $65,000 to $80,000
• Miscellaneous Pre-Opening Expenses:  $35,000 to $70,000
• Rent for First 3 Months:  $12,500 to $20,000
• Additional Funds for 3 Months:  $30,000 to $33,000
• Estimated Total Franchise Costs:  $276,200 to $417,400

Section II – Once Upon A Child’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Once Upon A Child’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $25,000
• Continuing Fee:  5% of Gross Sales
• Marketing Fee:  $1,500 per year
• Cooperative Advertising:  maximum amount is 5% of Gross Sales
• Local Marketing Expenses:  minimum amount, when combined with cooperative advertising expenses, is 5% of Gross Sales
• Advertising Fee:  if Winmark imposes this fee, you will pay up to 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Once Upon A Child Outlets

Franchised

2019

• Outlets at the Start of the Year:  379
• Outlets at the End of the Year:  388
• Net Change:  +9

2020

• Outlets at the Start of the Year:  388
• Outlets at the End of the Year:  399
• Net Change:  +11

2021

• Outlets at the Start of the Year:  399
• Outlets at the End of the Year:  401
• Net Change:  +2

Company-Owned

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – Background Information on the Once Upon A Child Franchise

14 Things You Need to Know About the Once Upon A Child Franchise

Celebrates Major Milestone with Opening of 400th Store

1.  In early October 2021, Once Upon A Child announced the opening of its 400th store. The brand celebrated the record opening in Douglasville, Georgia on September 23, marking a key growth milestone for Once Upon A Child. Winmark – the Resale Company (Once Upon A Child’s parent company) celebrated this exciting development with multi-unit franchise owner Allison Spartis. The 400th store launch marks Spartis’ second Once Upon A Child location and fourth Winmark franchise, as she also owns two successful Plato’s Closet stores.

2.  Renae Gaudette, president of franchising for Winmark Corporation, said, “It’s an incredible feeling to have opened our 400th Once Upon A Child location and to witness the impact our brands have on their communities. I can’t think of a more fitting franchisee partner than Allison to be able to share this experience with. Allison is everything we look for in a franchisee – she is compassionate, community-driven, a leader in our network, and understands the sustainable value our retail resale brands bring to families.”

3.  “As we continue to grow, our impact will only strengthen as we aim to further our position as the industry leader in resale and sustainability. Our team is regularly evaluating potential markets for future expansion of all Winmark brands – and, while we’re already a household name for many, we’re looking forward to reaching even more families across North America in the years to come,” said Gaudette.

4.  While the past year has been challenging for many retail brands, Winmark’s five resale brands – Play It Again Sports, Plato’s Closet, Style Encore, Music Go Round, and Once Upon A Child – defied the odds and grew to meet the increasing demand for quality used, secondhand products. The resale industry is growing 25 times faster than traditional retail with an estimated 64 million people buying secondhand products, and is projected to be worth more than double that of fast fashion.

5.  Winmark is able to rapidly grow through strategic franchise development in order to keep up with consumer demand. With over 2,000 available territories in the U.S. and Canada across all five brands, Winmark Corporation has its eyes set on targeted development, and is actively seeking to grow with qualified franchisees. The brand has pinpointed Dallas, Los Angeles, and Boston for immediate expansion.

Opens New Location in North Dakota

6.  As secondhand shopping increases in popularity, Once Upon A Child continues to expand across North America. One of the newest locations opened in Minot, North Dakota in January 2022. Local businesswoman and owner Danielle McNail signed the franchise agreement a year prior and signed a lease on the store itself in September 2021. She took over that location on January 1, 2022. The store opened for buying items on January 12.

7.  Within a few months, McNail’s store collected over 56,613 items. Aside from social media and radio marketing campaigns, McNail said she didn’t directly seek out items, but people brought items to the store from across North Dakota as well as Montana. Items must be gently-used and free of stains, holes, and excessive wear for the store to purchase them for resale. A computerized system determines the buying price and sale price of the items, which McNail said is based on the brand, condition, and demand.

8.  McNail said, “It has to be something re-sellable, and we just want to uphold the whole Winmark standard when we’re buying because you should be able to go to a store in Minot and the store in Fargo, and they should be very similar. Everything should be streamlined.”

9.  About two years ago, McNail said she became more serious about the idea of opening the store, but she had thought about it for years. A mother of two children, now ages 12 and 16, McNail frequently shopped at the Once Upon A Child in Bismarck. McNail added, “My daughter and I used to take girl day trips to Bismarck, and we’d go shopping before my son was born, and we’d always go to Once Upon A Child. We’ve shopped them all over the country. They’re great.”

10.  McNail said that she wanted to open Once Upon A Child to provide affordable options to families. She continued, “I understand how expensive it is to raise children today and want to offer an affordable option for local families. By purchasing merchandise directly from consumers, we’re able to offer them lower prices and a great opportunity to receive cash on the spot for items they may have otherwise simply given away.”

Company History

11.  Once Upon A Child was started in 1985 by Lynn Blum and her husband Dennis in Perrysburg, Ohio. Before opening their first store, Lynn Blum had been selling her sons’ clothing as well as clothing from her friends’ and neighbors’ kids at weekly garage sales. After Blum realized that Goodwill took in and resold kids and baby clothing, Blum felt that she could also start her own kids and baby resale store.

12.  The first Once Upon A Child store was a success and Dennis Blum left his job to join Lynn full-time in 1989. Over the next few years, the Blums opened additional stores to keep up with demand and by the early 1990s, Once Upon A Child had grown to 20 stores. However, the Blums struggled to expand to other regions.

13.  Then, in 1992, the Winmark Corporation acquired Once Upon A Child and launched a national franchise program. By 2011, Once Upon A Child had more than 240 stores in operation across the United States and Canada. Today, Once Upon A Child is one of the top franchises in the children’s retail category and one of Winmark’s top franchises.

Entrepreneur’s Franchise 500

14.  Once Upon A Child ranked No. 177 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Once Upon A Child Franchise (Item 19, 2022 FDD)

• The following is a financial performance representation titled “Once Upon A Child Unaudited Statement of Average Annual Sales and Gross Profit.”

• The gross profit figures in this Item 19 do reflect the cost of sales but do not reflect the operating expenses that must be deducted from the gross profit figures to obtain your net income or profit.

• The following statement of average annual sales and gross profits includes average gross sales and gross profits during the 12-month period ended December 25, 2021 (Winmark’s fiscal year) as reported by the 385 franchised Once Upon A Child Stores located in the United States and Canada that commenced operations in each of the years 1988 through 2020.

• This statement includes information from only those 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 25, 2021, with the understanding that some of these Stores had temporary closures as a result of COVID-19, as further described below.

• There are no material financial and operational characteristics of the U.S. Stores that differ materially from the Canadian Stores included in this financial performance representation.

• 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 25, 2021 or transferred during this period).

• The financial statements Winmark receives from franchisees for these stores are unaudited, and Winmark does not audit or independently verify, or express an opinion regarding, these statements.

• There were 385 franchised Once Upon A Child Stores which had been in operation by the same franchisee owners for the 12-month period ended December 25, 2021. All of the 385 Stores are reflected in the average.

• This financial performance representation does not include information for the 16 Once Upon A Child Stores that opened or transferred in 2021.

• No Stores closed in 2021 after being opened less than 12 months.

• Due to governmental regulations and other restrictions related to COVID-19 in many jurisdictions during 2021, some Once Upon A Child Stores were forced to temporarily close for extended periods of time during the year. The temporary closures and COVID-19 regulations and restrictions impacted the Stores’ sales.

• During the temporary in-store closures, some Stores continued to operate by offering curbside and/or online sales.

• Despite these temporary closures, as of the date of the current Disclosure Document, Once Upon A Child does not anticipate that COVID-19 has or will significantly change its business model or the way its Business System operates.

• For purposes of clarification, the 385 Stores includes all Stores that were temporarily closed as a result of COVID-19.

Part 1 – Statement of Average Gross Sales and Gross Profit of 385 Franchised Once Upon A Child Stores for the Fiscal Year Ended December 25, 2021

Year Opened – 2020

• Number of Stores Reported:  27
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  6/22%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  6/22%
• 2021 Average Gross Sales:  $823,144
• 2021 Median Gross Sales:  $780,898
• 2021 Average Gross Profit:  $543,898
• 2021 Median Gross Profit:  $509,926
• Average Gross Profit Percentage:  66.08%
• Sales Range:  $369,906 to $1,685,620

Year Opened – 2019

• Number of Stores Reported:  22
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  4/18%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  4/18%
• 2021 Average Gross Sales:  $868,314
• 2021 Median Gross Sales:  $815,907
• 2021 Average Gross Profit:  $575,119
• 2021 Median Gross Profit:  $563,428
• Average Gross Profit Percentage:  66.23%
• Sales Range:  $351,704 to $1,498,997

Year Opened – 2018

• Number of Stores Reported:  35
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  10/29%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  10/29%
• 2021 Average Gross Sales:  $905,670
• 2021 Median Gross Sales:  $800,006
• 2021 Average Gross Profit:  $607,079
• 2021 Median Gross Profit:  $533,485
• Average Gross Profit Percentage:  67.03%
• Sales Range:  $393,124 to $2,238,250

Year Opened – 2017

• Number of Stores Reported:  37
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  10/27%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  10/27%
• 2021 Average Gross Sales:  $967,047
• 2021 Median Gross Sales:  $799,480
• 2021 Average Gross Profit:  $644,989
• 2021 Median Gross Profit:  $541,300
• Average Gross Profit Percentage:  66.70%
• Sales Range:  $385,598 to $3,182,229

Year Opened – 2016

• Number of Stores Reported:  26
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  10/38%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  10/38%
• 2021 Average Gross Sales:  $1,001,179
• 2021 Median Gross Sales:  $946,863
• 2021 Average Gross Profit:  $664,990
• 2021 Median Gross Profit:  $596,159
• Average Gross Profit Percentage:  66.42%
• Sales Range:  $437,306 to $1,763,067

Year Opened – 2015 and Prior

• Number of Stores Reported:  238
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  124/52%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  120/50%
• 2021 Average Gross Sales:  $1,154,764
• 2021 Median Gross Sales:  $1,074,963
• 2021 Average Gross Profit:  $769,541
• 2021 Median Gross Profit:  $709,738
• Average Gross Profit Percentage:  66.64%
• Sales Range:  $210,581 to $3,120,276

Total

• Number of Stores Reported:  385
• Number and Percentage of Stores Attaining or Exceeding Average Gross Sales:  164/43%
• Number and Percentage of Stores Attaining or Exceeding Average Gross Profit:  160/42%
• 2021 Average Gross Sales:  $1,064,082
• 2021 Median Gross Sales:  $989,336
• 2021 Average Gross Profit:  $708,807
• 2021 Median Gross Profit:  $664,706
• Average Gross Profit Percentage:  66.61%

• “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.

Part 2 – Statement of Sales Ranges by Quartile for 385 Franchised Once Upon A Child Stores Open on December 25, 2021 That Had Been in Operation for at Least 12 Months by the Same Franchisee or Owners for the 12-Month Period Ended December 25, 2021

• Quartile refers to that portion of the total number of Stores open that represents 25%. For example, the first Quartile identifies those Stores that were in the top 25% of all Stores in Gross Sales.

• These results relate to specific Once Upon A Child Stores located in the United States and Canada. Your individual results will likely differ from these results.

1st Quartile

• Number of Stores:  96
• 2021 Gross Sales Range by Quartile:  $1,318,520 to $3,182,229
• 2021 Quartile Average Gross Sales:  $1,705,231
• 2021 Quartile Median Gross Sales:  $1,595,635
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  35/36%
• 2021 Quartile Average Gross Profit:  $1,134,293
• 2021 Quartile Median Gross Profit:  $1,074,312
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  37/39%
• Quartile Average Gross Profit Percentage:  66.52%

2nd Quartile

• Number of Stores:  96
• 2021 Gross Sales Range by Quartile:  $990,284 to $1,317,415
• 2021 Quartile Average Gross Sales:  $1,140,987
• 2021 Quartile Median Gross Sales:  $1,128,280
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  46/48%
• 2021 Quartile Average Gross Profit:  $759,612
• 2021 Quartile Median Gross Profit:  $752,498
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  45/47%
• Quartile Average Gross Profit Percentage:  66.57%

3rd Quartile

• Number of Stores:  96
• 2021 Gross Sales Range by Quartile:  $746,023 to $989,336
• 2021 Quartile Average Gross Sales:  $851,665
• 2021 Quartile Median Gross Sales:  $840,800
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  46/48%
• 2021 Quartile Average Gross Profit:  $570,756
• 2021 Quartile Median Gross Profit:  $570,668
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  48/50%
• Quartile Average Gross Profit Percentage:  67.02%

4th Quartile

• Number of Stores:  97
• 2021 Gross Sales Range by Quartile:  $210,581 to $741,006
• 2021 Quartile Average Gross Sales:  $563,658
• 2021 Quartile Median Gross Sales:  $572,661
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Sales:  53/55%
• 2021 Quartile Average Gross Profit:  $374,053
• 2021 Quartile Median Gross Profit:  $372,337
• Number and Percentage of Stores Attaining or Exceeding Quartile Average Gross Profit:  48/49%
• Quartile Average Gross Profit Percentage:  66.36%

Part 3 – Number of Stores, Average and Median Gross Sales, Lowest and Highest Gross Sales Amount in Each Range, and Percentage of Total Number of Stores That Fell Within Certain Ranges of Gross Sales for 2021

• Based on information reported by the 385 Once Upon A Child Stores which had been in operation by the same franchisee or owner for the 12-month period ended December 25, 2021, the following chart sets forth the number of Stores, average and median Gross Sales, the lowest and highest Gross Sales amount in each range, and the percentage of total number of Stores that fell within certain ranges of Gross Sales for 2021:

2021 Range of Gross Sales:  $0 to $250,000

• Number of Stores Falling Within Range:  1
• Average Gross Sales for Stores Within Range:  $210,581
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  1/100%
• Gross Sales for Lowest Store Within Range:  $210,581
• Gross Sales for Highest Store Within Range:  $210,581
• Median Gross Sales for Stores Within Range:  $210,581
• Percent of Total Number of Stores (385) Within Range:  0.26%

2021 Range of Gross Sales:  $250,001 to $500,000

• Number of Stores Falling Within Range:  28
• Average Gross Sales for Stores Within Range:  $435,526
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  14/50%
• Gross Sales for Lowest Store Within Range:  $300,522
• Gross Sales for Highest Store Within Range:  $499,940
• Median Gross Sales for Stores Within Range:  $435,011
• Percent of Total Number of Stores (385) Within Range:  7.27%

2021 Range of Gross Sales:  $500,001 to $1,000,000

• Number of Stores Falling Within Range:  168
• Average Gross Sales for Stores Within Range:  $761,934
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  89/53%
• Gross Sales for Lowest Store Within Range:  $511,986
• Gross Sales for Highest Store Within Range:  $999,445
• Median Gross Sales for Stores Within Range:  $773,260
• Percent of Total Number of Stores (385) Within Range:  43.64%

2021 Range of Gross Sales:  $1,000,001 to $2,000,000

• Number of Stores Falling Within Range:  171
• Average Gross Sales for Stores Within Range:  $1,342,166
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  73/43%
• Gross Sales for Lowest Store Within Range:  $1,009,241
• Gross Sales for Highest Store Within Range:  $1,965,721
• Median Gross Sales for Stores Within Range:  $1,305,241
• Percent of Total Number of Stores (385) Within Range:  44.42%

2021 Range of Gross Sales:  $2,000,001 to $3,000,000

• Number of Stores Falling Within Range:  15
• Average Gross Sales for Stores Within Range:  $2,229,894
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  6/40%
• Gross Sales for Lowest Store Within Range:  $2,019,242
• Gross Sales for Highest Store Within Range:  $2,954,054
• Median Gross Sales for Stores Within Range:  $2,109,660
• Percent of Total Number of Stores (385) Within Range:  3.90%

2021 Range of Gross Sales:  Greater Than $3,000,000

• Number of Stores Falling Within Range:  2
• Average Gross Sales for Stores Within Range:  $3,151,253
• Number and Percent of Stores Attaining or Exceeding Average Gross Sales for Stores Within Range:  1/50%
• Gross Sales for Lowest Store Within Range:  $3,120,276
• Gross Sales for Highest Store Within Range:  $3,182,229
• Median Gross Sales for Stores Within Range:  $3,151,253
• Percent of Total Number of Stores (385) Within Range:  0.52%

Section VI – Once Upon A Child Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️