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.
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How long will it take for the remaining franchisees to realize that the brand image of this franchise system has faded and lost value? The system will soon be at 49 stores, with more to close within the year. Stores with stable earnings are not being re-sold because many viable prospects walk away after reading the franchise offer or after they have visited the corporate office. How many stores have closed because they couldn't find a buyer? They wouldn't renew because of the current contract and they couldn't sell because of the current contract. This franchise is a mess of epic proportions.
Wonder if Taylor Bond ever revisits his earlier press releases must haunt him now, like this one on franchise gator.
"Since assuming his position with Children's Orchard in January 2004, Bond, whose previous experiences in franchising include high-level positions at Domino's Pizza and Computer Renaissance, is bringing renewed growth to Children's Orchard.... By applying experiences from his personal life along with lessons he learned during his years with other franchise concepts, Bond is well on his way to achieving his goal of having 300 locations open by 2007."
"Founded in 1980, Children's Orchard is the nation's first franchise of gently used and new name-brand kids stuff. With nearly 100 franchise locations in 23 states..."
Sophisticated business model? THAT is a joke. Once Upon A Child has a computerized inventory control and buying system that is DECADES ahead of Children's Orchard's hand written, color coded tags. Any customer or potential franchisee can clearly see that. Children's Orchard is improving: every year they get more and more like Once Upon A Child. Bigger stores, re-configured layouts (straight racks instead of circular ones), and walk-in buying are all concepts of Once Upon A Child.
Stop whining, You are out of your mind. You said, "Are CO franchise owners determined to fail to prove themselves right?" Yeah, I'm sure they're throwing away $150K to $750K in a few short years just to prove a point. Maybe they've given up after taking bad advice after bad advice from the franchisor. Perhaps the franchisor should actually base their advice, or dictates in most cases, on actual research instead of hunches. Exactly how much store traffic is generated by Just In! listings? It sounds to me like you must work at Children's Orchard in the advertising department. You also said, "The parties did not come to an agreement and parted amicably." Oh, how true THAT is. I would think that after so many people have chosen to part amicably from the franchisor, that they would try to create a franchise offering that isn't so unattractive to potential franchisees. Ironically, it's the FRANCHISOR who is failing at the expense of proving THEMSELVES right. It's a classic case of Narcissistic Personality Disorder.
Cathy:
I'm out of my mind?
You state that CO is such a terrible franchise and uses primitive handwritten color coded tags. But still, of all the franchises available, you chose to buy a CO franchise. Why didn't you buy a franchise from OUAC if it's so superior? Seems like bad judgement on your part.
You claim that Once Upon a Child has a superior system that's working in the marketplace. That makes Taylor Bond & Children's Orchard very wise to be imitating them, right? They are making judgements based on what's actually working - but instead of congratlating them on sound improvements you criticize them for making all their decisions on "hunches." Sounds contradictory on your part.
You defend franchisees not participating in marketing intiatives (like "Just In! listings") because they got bad advice in the past, but then say the initiatives aren't working. How can they work if people don't participate? How can the marketing dept base decisions on real data (not hunches) if no one participates? Seems illogical on your part.
Where's the logic in anything you say? Sounds to me like you are just looking for someone to blame. Then again. I'm probably just out of my mind.
did the Las Vegas stores close?
it is confirmed that the Vegas stores have closed. i think that brings the total down to 48
President Bond has raised the financial requirements of potential new franchisees for one reason. When they eventually fail, and they will, they will have more resources for him to go after.
Pres. Bond has raised the required capital investment for new franchisees so they will be sure have money left over to pay him when they are sued by CO for closing their failing stores before their contract agreement is up. It is not profitable for him to have stores closing when the owners have to then declare bankruptcy. Legal fees are expensive, even if you are just paying your own attorney brother to do your dirty work. Most of these stores have little, if any, resale value because of his new one-sided contract. He is not interested in the stores' success, only in collecting the franchise fees, territory fees or suing for the remainder of the money he feels he has coming to him when the stores close. If his business sense was half as good as his glib tongue, we'd all be millionaires!
So, how many new stores have been sold in the last 2 years?
As another Children's Orchard franchise about to go out of business. I want to ad my 2 cents. It is all I have left. My family invested nearly $200,000.00 in this Rip Off and yes, for you nay sayers defending this corporate fraud. I hope and pray that someday you'll get what is coming to you. If my prayers are answered some of you may even spend time in prison with him, where you can still be on his payroll for a butt or 2.