Risk Score
Pending analysis
Investment Range
$327,200 - $462,000
Franchise Fee
$15,000
Total US Locations
369
Business Summary
Once Upon A Child® operates retail stores specializing in quality used and new children's apparel, toys, equipment, furniture, and accessories. Once Upon A Child® stores offer consumer value by selling quality used merchandise at significant savings compared to new items and by purchasing used goods from customers. The stores also supplement their inventory with new merchandise.
Corporate History
Winmark Corporation was incorporated in Minnesota on July 20, 1988, under the name Play It Again Sports Franchise Corporation. The company changed its corporate name to Grow Biz International, Inc. in July 1993, and then to Winmark Corporation in November 2001. Winmark Corporation began offering Once Upon A Child® franchises in January 1993. The company also operates four other franchise systems: Play It Again Sports®, Music Go Round®, Plato's Closet®, and Style Encore®. In the past, Winmark offered Disc Go Round®, It's About Games, Computer Renaissance®, ReTool®, and Wirth Business Credit® franchises, but these concepts are no longer offered.
Financial Overview
Investment Range
$327,200 - $462,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$25,000
Royalty %
5%
Equipment Costs (Low)
$134,700
Equipment Costs (High)
$194,500
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, raises questions about its financial ability to provide services and support to franchisees. The company's consolidated balance sheets show a negative shareholders' equity (deficit) of $(51,046,100) as of December 28, 2024, and $(59,156,100) as of December 30, 2023. Despite this, the company has reported positive net income for the past three fiscal years, with $39,954,200 in 2024. This negative equity is primarily due to large cash dividends, including special cash dividends, as explained in the financial statements. The independent auditor has issued an Unqualified opinion on the financial statements and noted no critical audit matters. The company has also been strategically running off its equipment leasing business since 2021.
Financing Details
Once Upon A Child® does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
369
Franchised Units
369
Corporate Units
0
Avg Square Footage
4,000
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Once Upon A Child® has no litigation history that is required to be disclosed in the provided document.
Bankruptcy History
Once Upon A Child® has no bankruptcy information to disclose for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Once Upon A Child® franchise for an additional 10-year term, franchisees must provide the franchisor with written notice at least 180 days before the current agreement ends. They must have complied with all material provisions of the current agreement, including all financial obligations, and meet all current brand operating and quality standards, which includes making reasonable capital expenditures to remodel, modernize, and redecorate the store to reflect the then-current appearance of new stores. Franchisees must pay a renewal fee of $10,000 at least 30 days before expiration. At the franchisor's option, franchisees may need to sign the then-current standard franchise agreement, which could have different terms, including royalty rates, advertising contributions, and an altered exclusive territory. Finally, the franchisee must secure a renewal or extension of their lease or find a new, approved location within their development area.
Training & Support Program
Franchisor Assistance
Once Upon A Child® provides extensive support to its franchisees. Before opening, the franchisor assists with site evaluation, lease issues, and provides specifications for store layout and design, along with lists of necessary fixtures, equipment, supplies, and initial inventory. Franchisees receive a mandatory two-part training program in Minneapolis and online, covering general business operations, real estate, financing, store development, buying products, and operational aspects like sales, marketing, and inventory management. The franchisor also provides confidential operations manuals and pre-opening and grand opening assistance. During operation, Once Upon A Child® offers ongoing support through periodic store evaluations by field consultants, written reports, advisory services, updates to the business system and manuals, and development of advertising and marketing materials.
Initial Training Hours
61
Training Location
Minneapolis, MN and online
Ongoing Support
Once Upon A Child® provides ongoing support to its franchisees through various channels. Field consultants conduct periodic evaluations of stores and offer written reports to assist with operations. Franchisees can also request advisory services related to store operations. The franchisor regularly makes available all changes, improvements, and additions to the business system and provides updated materials for the confidential operations manuals, which are accessible via an extranet site. Additionally, Once Upon A Child® develops advertising and marketing materials for franchisees' use and manages the collection of annual Marketing Fees, which are used for advertising research, public relations campaigns, website development, online media programs, and the production of marketing and promotional materials for local markets. The franchisor also reserves the right to establish an Advertising Fund, to which franchisees would contribute an Advertising Fee for broader advertising campaigns.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
Once Upon A Child® grants franchisees an Exclusive Territory around their store location, determined by computer-modeled mapping that considers population density, average household income, and consumer traffic patterns. This territory is typically a 3 to 5-mile radius. For stores in urban areas with populations exceeding 250,000, the Exclusive Territory generally has a minimum population of 75,000 to 100,000 people. In all other areas, the Exclusive Territory generally has a minimum population of 50,000 people.
Staffing Notes
Once Upon A Child® requires that a designated management person be on duty at all times when the store is open for business, responsible for daily operations. Franchisees are expected to employ a sufficient number of adequately trained and competent employees to provide efficient customer service. The franchisee is solely responsible for all employment-related matters, including hiring, firing, training, setting hours, and supervising staff. Employees are not considered to be employees of the franchisor for any purpose.