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NTY’s Online Resale Plans and More Featured in Franchising USA

NTY’s Online Resale Plans and More Featured in Franchising USA

Online sales, loyalty programs and other high-tech offerings from NTY Franchise Company’s resale brands were recently featured in the July issue of Franchising USA. Read about it now:

July 2016 cover of Franchising USA featuring Chad Olson
July 2016 cover of Franchising USA.

Resale Retail Company Wants to Use Technology to Rule Industry

Although it’s in the business of selling gently used products, one Minneapolis based franchise is hoping to bring something new to the resale retail industry in the form of technology.

NTY, which stands for ‘New To You’, is a company that owns the franchising rights to five brands in the resale retail industry:

  • Clothes Mentor, which buys and sells used women’s fashion;
  • Children’s Orchard, which buys and sells children’s items;
  • Device Pit Stop, for purchasing and reselling electronics;
  • New Uses, which specializes in buying and reselling items for the home; and
  • NTY Clothing Exchange, the company’s teen and young adult resale retail brand.

With its largest brand, Clothes Mentor, the company wants to introduce an online store so people can shop for used items online the same way they would shop for new items on the internet, NTY’s chief operating officer Chad Olson said during a recent interview from the company’s headquarters in Minneapolis.

A lot of new websites have popped up online over the last several years that offer the service of reselling used items to customers, Olson noted, which has changed the online resale retail landscape. With this change in the landscape comes opportunity for Clothes Mentor, which will start rolling out its online store in baby steps.

First off, customers will have the ability to ‘click and pick,’ meaning they can make a purchase at their local Clothes Mentor store and then pick it up at the physical store. From there, the online store will expand until it is an integral part of the business.

Clothes Mentor also has an app that will allow the brand to push messages out to customers, allow customers to check their loyalty program points and give them electronic receipts so they don’t have to hang onto the paper ones in case they want to return something. Eventually, Clothes Mentor’s online store will also be available through the app, but that is a ways off as the brand is just getting started with its online store.

“This is a pretty big shift in our business model, so we’re going to make sure we do it right,” Olson explained.

Clothes Mentor isn’t just using technology to give customers a better experience, though. It’s also using technology to give its franchisees a boost, too. Specifically, it’s collecting more data on customers so franchisees can give them more personalized marketing. Recent generations like Millennials appreciate this more personalized marketing, Olson observed.

Across all five of the company’s brands, it has 193 stores open with another 56 in development. Clothes Mentor, NTY’s flagship franchise, claims the majority of those locations.

“Our number one goal is to offer the customer what we refer to as ‘Ultra high value retail’,” Olson said. “The stuff that we’re selling at the store level is at a much deeper discount than anywhere else they can find it because it is gently used.”

Aside from giving people the opportunity to save money, NYT also offers people the chance to recycle their items and receive cash in return, Olson mentioned.

In the Beginning

Clothes Mentor was founded in Columbus, OH by a local couple in 2001. Aside from the Columbus store, Clothes Mentor had a licensed store in Canton, OH. Olson and his father, Ron Olson, decided to go into business together, both having retail franchising experience with another company.

When they began looking at what opportunities were out there for their own business, they found out about Clothes Mentor and noted the two stores were doing quite well. From there, the father and son negotiated the franchising rights to that brand in 2007 and have been adding to the NTY family ever since.

Energy

NTY’s franchisees come from all walks of life, from kindergarten teachers to former professional bull riders. Regardless of their background, though, NTY wants franchisees to have a strong work ethic and enthusiasm.

“We would like them to have general business acumen, but more importantly, is that they have the energy, the drive, the motivation to be entrepreneurial,” Olson said. “We’re looking for people that want to be their own boss, but who have experience in one facet or another. We want them to bring their own skill set to the company.”

Training and Support

Training involves flying new franchisees out to Minneapolis for the company’s comprehensive three week business training program. NTY trains them in finding and leasing a location, plus business plan training.

“We basically prepare them in that training to go to a bank to obtain financing,” Olson said. “So we create a three-year profit and loss and cash flow statement. So, they leave here after that first bit of training prepared to find and obtain a location and obtain financing for the business.”

Once they have a location and financing, franchisees come back to Minneapolis for two weeks of operations training, where they are taught all aspects of how to operate the business. At least one of those weeks is spent in a real store environment.

Once the new franchisee is set up, they can expect NTY to visit their location a minimum of three times throughout their first year. Once will be prior to their grand opening and will include additional training. Subsequent visits will be during the grand opening and then again 90 days after the grand opening. Each visit is to ensure new franchisees get off to the best start possible.

Franchisees will continue to get visits from the company at least once per year for business consultations, Olson added. In between visits, the company offers monthly support calls.

“The ongoing support is fairly extensive because obviously in the franchise business, if our franchisees aren’t successful, then us as a franchisor will not be successful making money,” the COO said.

Expansion

All of NTY’s brands are open to expanding anywhere in the United States. Currently, the company has a presence in 30 states and is relatively well spread out, although a tad thin on the west coast, Olson noted.

“There’s lots of franchising opportunity available, especially on the west coast,” he explained.

For entrepreneurs who embrace technology, NTY, and Clothes Mentor in particular, offer a great opportunity to get in on the ground floor of something new and exciting in the resale retail industry.

See more from Franchising USA.

Linda Berg

Franchise Business Consultant

Linda Berg is the Franchise Business Consultant for Clothes Mentor’s Southeast region and the Franchise Operations Manager for Clothes Mentor, Children’s Orchard, and NTY Clothing Exchange. Linda joined the company in 2016 as the Store Manager and the Area Manager of the three corporate stores. Linda worked for Gap Inc. for 12 years at both Old Navy and Gap in various management roles. Her retail experience also includes 12 years at Mervyn’s in several management and training roles. 

Amy Donnelly

Director of Inventory Management | Franchise Business Consultant

Amy Donnelly is the Director of Inventory Management for Clothes Mentor. In addition, Amy holds the position as Franchise Business Consultant for Clothes Mentor’s Southeast Region. Prior to joining Clothes Mentor in 2013, she spent 8 years in retail management with Limited Brands.  Amy holds a BA degree.

Headshot of Ashley

Ashley Huebner

Director of Marketing

Ashley Huebner oversees Clothes Mentor’s marketing and advertising efforts to drive sales and build brand awareness. She also leads creative initiatives, driving the brand’s vision in aesthetics, tone, and trends to elevate our position as a leader in the resale category.

Ashley joined the Clothes Mentor team in March 2015. She has 10+ years of Graphic Design experience, a strong background in design and user experience, and a passion for creativity. She holds a BA degree in Advertising and Art.

Headshot of Michelle

Michelle Vaudrin

Senior Director of Operations

Michelle Vaudrin is the Senior Director of Operations for Clothes Mentor and Children’s Orchard. Prior to joining NTY Franchise Company in March 2016, she worked in leadership roles for Burlington, American Eagle, and Macy’s. Michelle attended the University of Wisconsin-Stout with a degree in Retail Merchandising and Business Administration. She brings extensive background in training of strategies, merchandising, customer service and multi-unit store operations to the team.

Headshot of Jenny

Jenny Mann

Vice President of Operations | Executive Director of IT

Jenny Mann is the Vice President of Operations for Clothes Mentor and Children’s Orchard. In January of 2020, Jenny also took on the role of Executive Director of IT, overseeing BST, our Point of Sale system, and the e-commerce platforms for both brands. Prior to this, Jenny was the Director of Marketing for NTY Franchise Company since January 2013. Jenny started with the NTY Franchise Company in 2008 with Clothes Mentor and has held many roles, including; Store Manager, New Store Opener, and Regional Operations Manager. Before joining NTY Franchise Company, Jenny worked for Old Navy (Gap, Inc.) and Target in management roles.

Headshot of Jarvis

Jarvis Herndon

Franchise Business Consultant

Jarvis Herndon is a Franchise Business Consultant for both Clothes Mentor and Device Pitstop. Jarvis has a strong background in retail management, leadership, and a history of operational success within a franchising system. He is passionate about assisting small business owners in developing their path to success while maximizing their businesses’ potential. Jarvis brings a great mix of skills and experience to the NTY Franchise Company.

Headshot of Sarah

Sarah Primmer

VP of Finance & Human Resources

Sarah Primmer is the Vice President of Finance and Human Resources for NTY Franchise Company. She joined the company in January 2014. Prior to joining NTY, Sarah spent over 25 years as the controller and business manager of a local sales and marketing firm calling on Target stores.

Headshot of Chad

Chad Olson

Chief Operations Officer

Chad Olson has been Chief Operations Officer of NTY Franchise Company since January 2007. From May 1994 to December 2006, he held various positions for Winmark Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for the Once Upon a Child concept from 1999 to 2002, and Regional Operations Manager for the Plato’s Closet concept from 2002 to 2006.

Headshot of Dan

Dan Goetz

Franchise Business Consultant

Dan Goetz is the Franchise Business Consultant for Clothes Mentor in the West Region. Previous to joining the Clothes Mentor Corporate staff in February of 2014, he worked in leadership positions with Aèropostale, Old Navy, Gap, Banana Republic, and Target stores. He attended the University of Minnesota-Duluth and St. Cloud State University. He brings a strong background in Operations, Merchandising, and Human Resources to the Clothes Mentor team.

Headshot of Sean

Sean Marrs

IT/Tech Administrator

IT/Tech Administrator
Headshot of Ashlyn

Ashlyn Aarness

Social Media Specialist

Social Media Specialist

Marissa Stacy

Jr. Graphic Designer

Jr. Graphic Designer

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Gina Geary

Franchise Business Consultant

Franchise Business Consultant

Headshot of Alice

Alice Heidenreich

Franchise Business Consultant

Franchise Business Consultant

Headshot of Jessica

Jessica Fix

Franchise Contract and Office Administrator

Jessica Fix is the Franchise Contracts and Office Administrator for NTY Franchise Company. She started with the company in January of 2018. Jessica works alongside the Franchise Development Team and provides office support to the headquarter office. She has 20 years in the franchise industry, previously working for Carlson Leisure Group/Travel Leaders Franchise Group in a variety of roles, such as Database Coordinator, Legal Contract Administrator, and Executive Assistant to the Franchise Sales Team.
Headshot of Ron

Ronald G. Olson

President

Ron Olson has been President and a Director of NTY Franchise Company since October 2006. Ron’s background included starting his career at Dayton’s Department Store, where he held many management positions. In 1977 he opened his own furniture store in Minnesota, which was a Drexel Heritage prototype store. In 1988 he co-founded Grow Biz International, now called Winmark. The first franchise rights that Olson purchased and started marketing was Play It Again Sports. Olson continued buying the Franchise rights for Once Upon A Child, Plato’s Closet, and Music Go Round. Today there over 1,000 Franchise locations.
Under NTY Franchise Company, the franchise rights were bought for Clothes Mentor and New Uses. In 2013 Olson bought Laptop Exchange and changed the name to Device Pitstop. In 2014 the company opened NTY Clothing Exchange and NTY Kids, now Children’s Orchard. There are currently 204 stores sold and 133 stores opened under the NTY Franchise umbrella.
Headshot of Michael

Michael D. Smith

Vice President of Strategic Planning

Michael D. Smith is the Vice President of Strategic Planning. From December 2000 to July 2010, Michael held the position of Chief Executive Officer and Co-Founder of the franchise company Laptop Xchange. From June 1994 to December 2000, Michael held numerous roles within the Grow Biz International brands of Play It Again Sports and Computer Renaissance. These roles included Corporate Store Management, Field Operation Specialist, and Franchisee.