Francorp Clients - Children's Orchard

Francorp developed the original franchise program for Children's Orchard franchising systems. The Franchise company is the industry leader in children's resale clothing. They currently have almost 100 locations and continue to define their industry. Here are the details on the company and background on the company.

Children's Orchard
900 Victor's Way, # 200
Ann Arbor, MI 48108

800 #:(800) 999-5437

Tel:(734) 994-9199 + 222
Fax:(734) 994-9323
E-Mail:campaign364@mail.emaximation.com
Website:www.childorch.com
Contact: Ms. Lisa Morgan, Franchise Development Director

Business Description:
Upscale children's retail/resale stores, featuring clothing, toys, furniture, equipment, books and parenting products. We buy top-brand items from area families by appointment, and re-sell in boutique-style stores, along with top-quality new children's items from nearly 200 suppliers. These are large volume stores selling thousands of items per week.

Franchisor Background
Year Established: 1980
Franchising Since: 1985
Operating Units:
Franchised Units:
84 98.8%
Company-Owned Units:
1 1.2%

Total Operating Units:
85 100.0%

Geographic Distribution:
U.S.: 85 100%

North America:States/Provinces with the largest number of operating units:
Density

Units
1. Michigan 6
2. Massachusetts 14
3. California 18

Registered in Following Registration States: California, Florida, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Oregon, Virginia, Washington, Wisconsin, District Of Columbia, Alberta Financial Requirements
Investment:
Minimum Net Worth:
$200K
Cash Investment:
$30-50K
Total Investment:
$72.5-158K
Average Total Investment:
$150K

Fees:
Initial Franchise Fee:
$22.5K
Average Franchise Fee:
$22K
On-Going Royalty:
5%
Average Royalty:
5%
Advertising Fee:
1.0%

Average Number of Employees: 1 Full-time, 3 Part-time

Space Needs (in square footage): 1,200-2,000

Preferred Sites: Storefront, Strip CenterOther Sites: Encourage Conversions? YesEarnings Claims Provided?: No
Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):

Financial Net Worth:
5
General Business Experience:
3
Specific Industry Experience:
2
Formal Education:
4
Psychological Profile:
2
Personal Interview(s):
5

Terms of Contract

Term of Initial Contract:
10 Year(s)
Term of Renewal Period:
Year(s)
Passive Ownership:
Allowed, But Discouraged
Area Development Agreements?
Yes, for 1 Year(s)
Sub-Franchising Contracts?
No
Franchisees Allowed to Expand Within Territory?
No

Support and Training

International Franchise Association:
Yes
Canadian Franchise Association:
No
Franchisee Association/Member:
Yes, Member
Size of Corporate Staff:
15
Site Selection Assistance?
Yes
Lease Negotiation Assistance?
Yes
Financial Assistance?
Yes, Direct


Projected New Units Over Next 12 months: 15
U.S.: Yes, All US Except HI, AK
Canada:
No
Overseas:
No