Children’s Orchard CEO Taylor Bond claims, in a recent press release, that as it celebrates its 30th anniversary, his troubled company continues to be the leader and trailblazer of the “upscale resale franchise concept.”
He claims that his recent operational and franchise innovations “have helped to increase store inventories, boosted customer traffic and satisfaction, and resulted in an overall increase in store sales.”
Bond also claims the changes are attracting savvy prospective franchise owners: “we’re attracting a greater number of business owners who see us…for the sophisticated business model we offer.”
Taylor Bond states: “Customers and franchise owners alike are giving us rave reviews.”
If these claims are true, Children’s Orchard CEO Taylor Bond is engineering a turnaround that’s nothing short of amazing.
Just last year, disgruntled Children’s Orchard franchise owners launched the OrchardCooperative.org website to protest Taylor Bond’s management and franchise policies and practices. According to the site,
“Many franchisees—after years in the business—have yet to make a profit, and many are being forced to close shop. Under Mr. Bond’s leadership, the number of stores has declined steadily from 86 in 2004, to 77 in 2007, to 71 in 2008, and to 61 in 2009. A handful of others are expected to close their doors this year.”
Currently, the number of stores listed on the Children’s Orchard site is just 51, down from nearly one hundred at one time. While Children’s Orchard stores have been closing, competitors seem to be thriving with similar concepts.
The statements and Taylor Bond quotes come from a 30th Anniversary press release (“Nation’s First Children’s Resale Franchise Reveals Business Model for Future”) issued by the company and posted on Franchising.com, Ann Arbor Biz and a handful of franchise blogs. Here are excerpts from the press release outlining the improvements claimed by Children’s Orchard:
“Larger stores, a reconfigured layout, and an emphasis on convenience and shopability…”
“…no-appointment-needed Walk-In Buying (with the industry’s only 20 minute guarantee) and seasonal Tent Sales”
“…we’ve enhanced the process by which we buy clothes from customers, and we’ve improved efficiency of back-end operations. Customers and franchise owners alike are giving us rave reviews.”
“The addition of these new elements to its business model, first tested at the company’s flagship location in Ann Arbor, Michigan, have helped to increase store inventories, boosted customer traffic and satisfaction, and resulted in an overall increase in store sales”
“in March 2010 Children’s Orchard rolled out its online store at www.childorchstore.com”
“Children’s Orchard’s new online store gives moms access to a variety of brand-new products, ranging from eco-friendly handbags to kids toys to software that helps parents monitor their children’s Internet usage.
“Unlike any other children’s resale store, each Children’s Orchard store’s website offers its customers the chance to preview items that have just arrived at their nearest location. They’re called “Just In! Listings” and customers love them.”
“The franchise has also secured marketing partnerships with such well-known ebrands as Net Nanny® and JumpStart®.
“In addition, Children’s Orchard has launched a Social Media campaign on Facebook, engaging its customers through a series of contests and giveaways, and also launched a recipe exchange website designed for today’s busy moms.
“As part of the evolution to a more sophisticated business model, Children’s Orchard has elevated the capital criteria for new franchise owners. ‘We’ve raised the required net worth to reflect a new mindset: it’s not just about operating a store, but about building a business,’ Bond added.”
“’Over the last 30 years, we’ve grown a loyal, nationwide following of Children’s Orchard brand advocates. Most of our franchise owners came from this pool of devoted customers,’ Bond said. ‘And as Children’s Orchard® brings resale shopping into the next century, we’re attracting a greater number of business owners who see us not just for the quality products and services we provide, but for the sophisticated business model we offer.’”
ARE YOU FAMILIAR WITH THE CHILDREN’S ORCHARD FRANCHISE? WHAT DO YOU THINK? ARE STORE SALES RISING? HAS TAYLOR BOND TURNED THINGS AROUND? SHARE A COMMENT BELOW.
Recent developments have left franchisees worried and uncertain about their futures. To advocate for greater…
The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…
PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…
U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…
More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…
Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…
View Comments
Per usual, Children's Orchard CEO is long on PR aand gimmicks and short on performance. Stores continue to close. They are slated to lose several more this month, whcih will take them below 50. While the competitors are growing at 3 to 4% a year, Children's Orchard is declining at 9% a year.
They continue to take closed stores into bankruptcy suing most recently for $30,000 and $60,000, claiming lost royalties, when it is clear to everyone but themselves and a handful of loyalfranchisees that they've caused these stores to go under.
John
I was curious to see what stores were using the “Just In! Listings” that customers supposedly love, so I spot checked CA stores.
More than half the store pages said "There are no Just In! items listed at this time." (Apple Valley, Cypress, Fountain Valley, Lake Forest, Rancho Cucamonga, Roseville, San Juan Capistrano, Thousand Oaks)
Some had 1 or more items listed (Laguna Niguel, Manhattan Beach, San Dimas, San Marcos, Santa Clarita, Simi Valley, Torrance) but they are stock photos and it's unlikely they'll be updated. Plus, the disclaimer says that there's no assurance that the items shown are available.
Looks like another poorly thought out gimmicky idea that will never be implemented.
What a joke. CO still don't have a barcode system. What franchised retail store can you think of that doesn't have a simple barcode system? Taylor needs to bring CO up to the 1990's first.
The "store of the future" doesn't have bar code scanning?
I was also curious about the claim that they have gone to "Larger stores"? Since they haven't been opening new stores, how are existing stores getting larger?
Also, how are franchisees benefitting from sales diverted to the online store? Aren't they now in competition with their franchisees?
Children's Orchard is a great store with a great recycling concept.They have better quality as well as better prices than ANY other resale store in Ohio.Many of their competitors have stained clothing as well as worn out faded clothes.Children's Orchard is by far the best!
You are right, it is a great concept, with high quality used children's clothes.
It does not mean, however, that the business is profitable, or that the store owner (franchisee) is able to operate under the dictates from this franchisor.
This system is folding for a reason, and the reason is the kooky franchisor. He is a wiz bang at ruining businesses.
Maybe the franchisees are cutting off their noses to spite their face, as they say.
“Just In! Listings” sounds like a good marketing idea but when I checked the 9 or so stores in MA only one store had 1 item posted.
How can Children's Orchard provide improvements if their franchisees won't participate or use the tools provided? Are CO franchise owners determined to fail to prove themselves right?
Really? That's all you can offer? "Children's Orchard provide imporvements?"...
Solid, well run locations have closed rather than sign the criminal franchise agreement at renewal time. The contract is so criminal that prospects have walked away from buying resales rather than sign up.
And HOW MANY brand new stores have opened in the past few years?
And, why didn't stores fold up their tents when Walt Hamilton owned the system?
Some franchisees may be cutting off their noses, but the franchisor is cutting franchisees off at the knees.
"Solid, well run locations have closed rather than sign the criminal franchise agreement at renewal time."
They were offered a well-documented business proposal and they took a pass. That's the way it's supposed to work. That's not criminal. That's business.
"The contract is so criminal that prospects have walked away from buying resales rather than sign up."
You might want to look up the actual definition of "criminal." Again, the terms of the agreement were clearly spelled out, I assume. The parties did not come to an agreement and parted amicably. The system works!
"Some franchisees may be cutting off their noses..."
I agree. Maybe franchisees should spend more time trying the new programs and tools and less time pining for the good old days.
Why should CO keep developing new marketing ideas if franchisees don't participate?
I retract "criminal" and insert...."one-sided".
Owning a franchise is NOT like being an independent business owner. The franchise agreement legally binds the franchisee to the franchisor and basically the franchisee works for the franchisor.
All the new "programs and tools" you tout have not been able to overcome a "one-sided' franchise agreement.
I am very happy that the "well-documented business proposal" is being rejected, because it means consumers are reading it and understanding the implication of each and every clause.
I congratulate each and every person who walked away. In fact, anyone who is looking at this franchise system shouldn't walk away...they should run away.
I think the fact that there it has been years since a new franchise has been sold, speaks for itself.