CHILDREN’S ORCHARD: May 2010 Press Release
Children’s resale franchise Children’s Orchard is distributing the following press release.
Reactions and comments regarding the release are invited here:
CHILDREN’S ORCHARD: CEO Taylor Bond Claims Franchisees Giving “Rave Reviews”
Read more about the (previously?) troubled franchise chain here:
CHILDREN’S ORCHARD: Overview & Links
“Nation’s First Children’s Resale Franchise Reveals Business Model for Future
“May 10, 2010 // Franchising.com // Ann Arbor, MI – The Children’s Orchard "store of the future" and refined franchise model has arrived, racking up increased sales and high marks from its core customer base of spending-conscious, Internet-savvy moms and their kids.
“As it celebrates its 30th anniversary, the children’s upscale-resale concept isn’t standing still. Larger stores, a reconfigured layout, and an emphasis on convenience and shopability are just part of Children’s Orchard’s commitment to meeting the needs of moms and their kids. On the heels of introducing no-appointment-needed Walk-In Buying (with the industry’s only 20 minute guarantee) and seasonal Tent Sales, in March 2010 Children’s Orchard rolled out its online store at www.childorchstore.com. 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.
"’At 30 years of age, we are still the trailblazers of the upscale resale franchise concept,’ said Children’s Orchard CEO Taylor Bond. ‘We were the first franchise to offer quality, higher-end, gently-used clothing and other items for children, and we continue to lead the way. We’ve rolled out online programs that meet the needs of today’s techno moms, 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.’"
“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.
“To meet the needs of today’s busy mom, 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.
"’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.’
“About Children’s Orchard®
“Founded in 1980, Children’s Orchard is the nation’s first franchise of gently used and new name-brand children’s items. With over 50 franchise locations, each Children’s Orchard store buys and sells quality used and new brand name clothing, toys and accessories in an upscale retail environment. Children’s Orchard stores are designed to emphasize quality, value, comfort and commitment to the local community.
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Bond is bullish about the future. He projects revenues will climb to $22 million this year, up from about $20 million last year.
“We are looking to get to 300 stores by 2010,” Bond said. “At the same time, we see the volume in our stores growing.”
FUNNY
Well, for revenues to be at $20M over 49 stores that means the average per store is $408K. We know for a fact that the average per store is well below this mark. I am wondering if he knows something the franchisees don’t? We are half way through 2010 at 49 stores. This means that 251stores will be opening within 6 months. Is there a large capital infusion that will get the franchise there?
did the Las Vegas stores close?
seems like just more talk…talk….talk…
The progression of the decline of this franchised business is stunning. If StatingFacts was correct in early July that there were 49 stores, a current count puts them at 43, making a 6 store loss in just 4 months!!!
I do not think enough questions have been asked about what the true intent of this franchisor has in maintaining a healthy system. So far, all the statements appearing in corporates press releases have turned out to be lies. Why isn’t anyone questioning?
Sorry, but it does not pass the smell test to say it is the economy. The other children’s franchises are doing just fine thank you. In the meantime, this one keeps on shrinking.
Guest:
UnhappyFranchisee.com is questioning. Better than nothing I guess. Here’s the latest: CHILDREN’S ORCHARD Suing Failed Franchise Owner http://www.unhappyfranchisee.com/childrens-orchard-suing-failed-franchise-owner/ Comments welcome.
RE: stores open I count 44 listed as open on the site. Are there some posted on the site that are closed? Here’s the count by state listed on the CO website:
AZ: 1
CA: 12
CO: 1
KS: 1
MA: 9
MI: 3
MO: 6
NC: 1
NH: 2
NV: 1
OH: 1
OK: 2
SC: 1
TN: 1
TX: 1
WI: 1
Corrections?
You are correct, I counted wrong.
I read your latest. As an FYI, Adam is the brother of the owner Taylor, not his son. Although I have heard that Taylor pushes his brother around like he was his father.
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You’re right. Adam is Taylor’s brother, not son. Thanks – I made the correction.
Does Children’s orchard publish their average sales volume in their item 19? Does anyone know what systemwide average sales volumes are? What about margins? Is anybody making any money?
Below is a link to the Franchise disclosure document published by Children’s Orchard in March 2010. It is based on 2009 data. Page 24 gives average and median store sales as well as average margins. There is a lot more info there if you need it.
In summary average store sales: $295,000
Median sales: $258,000
Average margin 65%
http://134.186.208.228/caleasi/PDFDocs/005526196.PDF
Below is a link to the 2009 franchise disclosure document published March 2010. Data regarding sales and margins can be found on page 24.
In summary:
Ave sales in 2009 $295,000
Median Sales $ 258,000
Ave margin 65%
http://134.186.208.228/caleasi/PDFDocs/005526196.PDF
Thanks. How large are most of the stores?
Of the 41 or so that are remaining, maybe about 7 or 8 are 3,000 sq ft and above, which leaves about 33 stores at a range of 1,200 to 2,400.
Down 4 to 37 since February. Now that’s progress! Way to go Children’s Orchard!