|
Once Upon A Child Franchise ProfileRetail Franchises > Specialty Retail |
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.
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.
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.
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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Once Upon A Child Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| 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 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.
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.
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.
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.
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.
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.