Once Upon A Child Franchise Costs, Fees & FDD

Year Business Began: 1984

Franchising Since: 1992

Headquarters: Minneapolis, Minnesota

Estimated Number of Units: 430

Franchise Description: Winmark Corporation is the franchisor. Franchisees own and operate “Once Upon A Child” retail stores from which they sell quality used and new children’s apparel, toys, equipment, furniture and accessories. Stores also offer new merchandise to supplement the selection of used goods.
Training Overview: The franchisor conducts its two-part training program at Winmark’s training center in Minneapolis and through online training sessions. The first session of the training program, Resale University 101 Training, covers several aspects of set up and opening of a franchised retail business, including real estate matters, business plan development, buying used and new products, the franchisor’s service vendor program and other topics Winmark may select. The first session will take place over a period of four days. The second session of the training program, Resale University 201 Training, is conducted over a period of at least five days and will include instruction on sales, customer service, marketing, advertising, computer operation and store inventory, staff and financial management, as well as topics Winmark may select. The franchisor will not allow franchisees to open their store unless they successfully complete both sessions of the training program. The franchisor also provides store opening assistance on the day before and the day of the initial opening of the store. The franchisor currently does not require franchisees to attend any additional training programs.

Territory Granted: Franchisees will receive an “exclusive territory” surrounding the location of the store when granted a Once Upon A Child franchise. Computer modeled mapping which factors in population density and average household income and consumer traffic patterns will determine the boundaries of the exclusive territory, which is typically a three to five-mile radius around the store. The exclusive territory for stores located in urban areas (metropolitan areas with a population in excess of 250,000 persons) generally will have a minimum population of 75,000 to 100,000 persons. The exclusive territory for stores located in all other areas generally will have a minimum population of 50,000 persons. The franchisor will not establish another franchised or company-owned Once Upon A Child store at a physical location in the exclusive territory. Franchisees do not need to achieve a certain sales volume or market penetration to retain the exclusive territory under the Franchise Agreement.

Obligations and Restrictions: If franchisees are individuals, they must be the on-site owner/operator and personally manage the store unless they receive the franchisor’s prior consent to delegate their authority to manage the store. Although the franchisor does not prohibit franchisees from being employed by a company other than the Once Upon A Child business, their primary job responsibility must be the operation of the store. If franchisees are a corporate entity or a partnership, one individual must retain at least 50% of the equity and voting interest in the corporation entity or partnership and will be obligated to personally manage and operate the store. Franchisees must offer and sell only those goods and services that the franchisor has approved. Franchisees also must offer all goods and services that the franchisor designates as required for all franchisees. Franchisees may not sell or accept in trade any infant formula, used infant/child car seats or products that they believe may be stolen or that have been recalled or otherwise not approved for sale by the U.S. Consumer Products Safety Commission or the National Highway Traffic Safety Administration. Franchisees may use only approved advertising and promotional materials.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees meet the renewal requirements set forth in the Franchise Agreement, they can renew the Franchise Agreement for additional 10 year period(s).

Financial Assistance: The franchisor does not offer director or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,000	$25,000
Fixtures and Supplies	$55,000	$70,000
Signs	$10,000	$15,000
Security System and/or Cameras	$1,500	$4,000
Point-of-Sale (POS) System	$22,200	$29,500
Leasehold Improvements	$11,000	$21,000
Build-Out	$35,000	$55,000
Deposits and Business Licenses	$5,000	$15,000
Opening Inventory	$65,000	$80,000
Miscellaneous Pre-Opening Expenses	$40,000	$70,000
Rent – First 3 Months	$17,500	$27,500
Additional Funds – 3 Months	$40,000	$50,000
ESTIMATED TOTAL	$327,200	$462,000

 
Other Fees

Type of Fee	Amount
Continuing Fee	5% of gross sales.
Marketing Fee	$1,500 per year.
Cooperative Advertising	Maximum amount is 5% of gross sales.
Local Marketing Expenses	Minimum amount, when combined with cooperative advertising expenses, is 5% of gross sales.
Advertising Fee	If the franchisor imposes this fee, franchisees will pay up to 2% of gross sales.
Transfer Fee	$10,000
Audit Expenses	Cost and expenses related to audit.
Renewal Fee	$10,000
DRS Maintenance Fee	The fee for the term of this Franchise Agreement is $1,000. Upon renewal the then-current rate for the fee will be applied.
Technology Fee	Currently $0.
Remodeling Expenses	Will vary under circumstances.
Insurance	Will vary under certain circumstances.
Inventory	Will vary under circumstances.
Interest Expenses	Lesser of 18% per year or maximum rate permitted by law.
Costs and Attorneys’ Fees	Will vary under circumstances.

The above information has been compiled from the FDD of Once Upon A Child. Year of FDD: 2025.
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