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CHILDREN'S ORCHARD
Children’s Orchard franchises operate retail stores that buy used and new clothing, equipment, accessories, and toys from customers and resell them to parents and families seeking affordable children’s products. The business model is a buy-and-sell resale system targeting budget-conscious consumers in the children’s market. As of December 31, 2024, there are 15 franchised Children’s Orchard stores.
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Franchise Costs
4% royalty + $2,000/yr NMF (national marketing, up to $3,000/yr) + $500/yr technology access + $190/mo software support
Financial Performance
Item 19 Financial Performance
Data Based On: 15 Stores across four quartiles for the 2024 calendar year, representing franchised outlets.
* Average gross revenue is taken directly from the 'Total' row 'Average Net Sales' in Table 1. Weighted average calculated from quartile data was (4 * $600,314 + 3 * $416,183 + 4 * $328,823 + 4 * $250,153) / 15 = $397,713.93, which is consistent with the reported total. 'Net Sales' as defined includes deductions for sales tax, discounts, and customer refunds/returns.
Extracted Item 19 Section
Avg. Revenue: $398,868
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Unlock financial performance dataCHILDREN'S ORCHARD Franchise Analysis
The resale sector for children's gear thrives amid rising family budgets, and Children's Orchard has pitched its tent here since 1993. Yet the system's recent shrinkage from 18 to 15 franchised units signals potential headwinds. Item 19 earnings data and a history of franchisee disputes paint a picture worth scrutinizing—can this model deliver stability in a fickle retail landscape?
Diving into the FDD, Item 7 pegs total investment at $206,700-$320,500, including a $25,000 franchise fee, with ongoing fees of 4% royalty plus $2,000/year national marketing fund (up to $3,000), $500/year tech access, and $190/month software. Item 19 shines a light on performance: average gross revenue hit $398,868 across units, though median lags at $351,303—suggesting top performers skew the average while many hover lower. Only 15 locations as of late 2024, with just 1 projected new unit and 1 transfer, underscore stagnation after a -17% drop from 2023.
System health raises cautions: merely 2 SBA loans on record averaging $149,500 indicate limited financing appeal or uptake. Litigation notes in Item 3 reveal arbitrations from franchisees claiming breach of contract, franchise act violations, fraud, deceptive practices, and misleading financial reps—echoing broader resale franchise pitfalls. For investors eyeing retail resale, these metrics imply high risk of underperformance unless in an ideal market; the trajectory screams caution over expansion hype.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How CHILDREN'S ORCHARD Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
CHILDREN'S ORCHARD Current | $207K – $321K | $25K | 4.0% | 15 |
| MERLE NORMAN COSMETICS | $48K – $260K | N/A | N/A | 797 |
| CORNWELL | $80K – $324K | N/A | N/A | 793 |
| BATTERIES PLUS | $285K – $537K | $50K | 5.0% | 601 |
| PET SUPPLIES PLUS | $537K – $2.0M | $50K | 3.0% | 502 |
| WILD BIRDS UNLIMITED | $227K – $379K | $40K | 4.0% | 340 |
Specialty Retail Average 47 franchises | $284K – $703K | $39K | 5.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 47 Specialty Retail franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for CHILDREN'S ORCHARD franchisees (2017 – 2018)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
2 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
15 franchisee contacts on file from official FDD filings.
15 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Arbitrations by franchisees alleging breach of contract, violations of franchise acts, fraud, deceptive trade practices, and improper financial performance representations.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a CHILDREN'S ORCHARD franchise ranges from $206,700 to $320,500. This includes a franchise fee of $25,000. Ongoing royalty fees are 4.0% of gross sales.
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