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Description
Investment Icon

What is the Initial Investment for a Once Upon A Child Franchise?

The total initial investment for a Once Upon A Child franchise ranges from $287,800 to $420,800. This includes a franchise fee of $25,000. Potential franchisees should also prepare for additional costs such as working capital, which requires cash reserves between $65,000 and $80,000. It's essential to assess your financial situation before diving into this investment.

Fees Icon

What are the Ongoing Fees for Once Upon A Child Franchisees?

Once Upon A Child franchisees are subject to a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These ongoing fees are crucial for maintaining brand standards and supporting marketing efforts. Understanding these fees can help you plan your budget and ensure your franchise remains profitable.

Revenue Icon

What is the Average Revenue for a Once Upon A Child Unit?

The average annual revenue per Once Upon A Child unit is approximately $1,248,773, with a median revenue of $1,143,729. This financial performance indicates a strong potential for profitability. However, revenues can vary significantly, with the lowest reported at $200,046 and the highest at $3,612,105, depending on factors such as location and management.

Breakeven Icon

How Quickly Can You Expect to Break Even with a Once Upon A Child Franchise?

Franchisees can anticipate a breakeven period of around 12 months, with an investment payback period of approximately 11 months. This relatively quick return on investment is appealing for many entrepreneurs. It highlights the potential for a successful venture, provided the franchisee effectively manages operations and marketing strategies.

Once Upon A Child Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$300,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

11 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$25,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$287,800 - $420,800
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$65,000 - $80,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,248,773
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,143,729
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$3,612,105
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$200,046
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Retail Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Retail
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Brett Heffes
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

605 Highway 169 N, Suite 400 Minneapolis, Minnesota 55441
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1988
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Winmark Corporation

Once Upon A Child Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

406
The number of locations owned by independent franchisees.

Franchised Units i

406
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 399 401 406
Net Change YoY 2 5
Franchised Units 399 401 406
Net Change YoY 2 5
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Investment Overview

Once Upon A Child offers a low to moderate initial investment range between $287,800 and $420,800, making it accessible for aspiring franchisees. The initial franchise fee is set at $25,000, with ongoing royalty fees of 5% and a marketing fee of 2%. Franchisees are expected to have cash reserves between $65,000 and $80,000, along with a net worth requirement of $300,000 to $500,000.

Potential About

Revenue Potential

The average annual revenue per unit for Once Upon A Child is approximately $1,248,773, with a median revenue of $1,143,729. This indicates a strong revenue potential for franchisees, with the lowest annual revenue reported at $200,046 and the highest at $3,612,105. This diverse range reflects the brand's appeal and market adaptability.

Metrics About

Breakeven and Payback

Once Upon A Child franchisees can expect a breakeven time of around 12 months, showcasing the brand's efficient business model. The investment payback period is estimated at 11 months, allowing franchisees to recoup their initial investment quickly, which is a significant factor for new business owners.

Fees About

Growth Trajectory

The franchise has demonstrated steady growth, with the number of franchised units increasing from 399 in 2021 to 406 in 2023. This growth trend indicates a positive market reception and the brand's ability to attract new franchisees, further enhancing its presence in the children's resale market.

Breakeven About

Operational Insights

The average cost of goods sold (COGS) for Once Upon A Child is approximately $415,715, which accounts for 33.33% of total revenue. While operating expenses are not fully specified, understanding these costs is crucial for franchisees to manage their profitability effectively and maintain a healthy bottom line.

Units About

Brand Mission

Once Upon A Child aims to provide families with quality, affordable children's clothing and gear through a sustainable resale model. The brand is dedicated to promoting eco-friendly practices by encouraging the recycling of children's items, all while ensuring a positive shopping experience for customers. This mission resonates with environmentally conscious consumers and positions the brand favorably in the market.

Frequently Asked Questions

The initial investment for a Once Upon A Child franchise ranges from $287,800 to $420,800, which includes the franchise fee of $25,000.