Spring Cleaning for Cash

Jade Moore with Clothes Mentor in Little Rock discusses how to unload those underutilized garments for some cash!

Clothes Mentor Named to Entrepreneur’s Franchise 500 2018 List

 Top-performing women’s resale clothing franchise earns their spot on Entrepreneur Magazine’s 39th annual ranking

(Minnetonka, Minn.) – Clothes Mentor, a national women’s resale clothing franchise headquartered in Minneapolis, Minnesota, is celebrating their inclusion in Entrepreneur’s Franchise 500® 2018 List. Considered one of the most comprehensive rankings in the franchise industry, Entrepreneur’s Franchise 500 uses a proprietary formula to rank the best franchise companies in the world.

“No matter where you fall on the list, making it into Entrepreneur’s Franchise 500 is a huge honor,” NTY Franchise Company COO Chad Olson said. “Clothes Mentor has been NTY Franchise Company’s most recognizable resale clothing franchise for more than a decade and we are proud of the growth and prosperity it’s had.”

Clothes Mentor was NTY Franchise Company’s first brand, launched when the company purchased the franchising rights in 2007. The resale designer clothing franchise  has seen tremendous growth over the last three years, opening 32 new units around the United States since 2015. Clothes Mentor specializes in buying and selling like-new designer clothing, shoes and accessories for women.

Resale franchises are enjoying a $17 billion boom that began during the great recession and continues today as consumers flock to stores like Clothes Mentor to buy and sell their gently used women’s fashion. Since 2017, Clothes Mentor has successfully recycled more than 42 million items of mall brand and designer clothing and paid women more than $180 million for their gently-used items.

CEO Ron Olson, the mastermind behind resale franchise brands like Play It Again Sports and Plato’s Closet, envisioned a whole new concept for women’s resale clothing franchises when he purchased the only three Clothes Mentor locations in 2007. He despised the bare-bones feel of resale stores and the “musty attic” smell common in them. Working with his son, Chad, they set out to rebrand Clothes Mentor as an upscale boutique featuring designer clothing and accessories at resale prices. They added bright colors and signage to the store design, made sure stores were well-lit and featured state-of-the-art technology. They paid special attention to the ambient scents in the store. They stocked their shelves with current fashion and paid cash on the spot to local women for their gently-used items.

The idea was a hit. Women rushed into Clothes Mentor stores to sell their gently-used designer clothing and came away with much-needed cash. They refreshed their closets with high-fashion brands for pennies on the dollar. By 2014, Ron and Chad Olson had grown the Clothes Mentor franchise to 100 stores. Today, there are more than 140 Clothes Mentor stores in 42 states. Plans call for an additional 50 locations to be opened in the next three years.

To learn more about Entrepreneur’s Franchise 500 2018 List, click here.

About Clothes Mentor

Clothes Mentor started with two existing locations in 2006 and began expanding the brand the same year. As of January 2018, the company has 145 stores in 42 states with many more in development. Clothes Mentor is a resale-based women’s designer fashion brand known as being cutting-edge in both high-end designer fashion and technology. The company buys and sells like-new apparel, shoes, and accessories for all women, Sizes 0-26, petites, and maternity. The inventory comes from the same customers who shop in the store, and sellers are offered cash on-the-spot or credit toward a new purchase. With stores throughout the United States, each store serves its local community in both buying and selling gently-used, designer clothing, shoes, boots, handbags, jewelry, and other accessories.

About NTY Franchise Company

Founded in 2006 by Ron Olson, NTY Franchise Company is the gold standard in resale franchising companies. NTY franchises five brands, all with a different focus: Clothes Mentor, Children’s Orchard, Device Pitstop, New Uses, and NTY Clothing Exchange. The brands are all resale-based and cover women’s designer fashions, children’s apparel and accessories, furniture and household goods, electronic sales and repair, and clothing for teens and young adults. All are great business opportunities with cutting-edge technology, unmatched support, and lucrative resale franchises. NTY Franchise Company has helped individuals to establish resale stores throughout the United States in many communities, and it has territories available to develop nationwide.

Interview with COO Chad Olson Featured in USA Weekly

If you could go back in time, what business advice would you tell your younger self? Chad Olson, COO of NTY Franchise Company, shares what he has learned and more in this excerpt from USA Weekly.

Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges that face every business whether they are large or small. It is not easy running a company, especially in a fast-paced, ever-changing business world. Technology advances, new hiring strategies, and now, political changes coming with the new administration, all add to the existing business challenges that entrepreneurs, business owners, and executives have to deal with.

Maximizing profits, minimizing expenses and finding talented staff to keep things moving seem to be top challenges for both SMBs and large corporations. We have been interviewing companies from around the world to discover what challenges they are facing in their businesses. We also asked each company to share business advice they would give to a younger version of themselves.

Below is our interview with Chad Olson, COO at NTY Franchise Company:

What does your company do?

NTY Franchise Company Founded in 2006 by Ron Olson, NTY Franchise Company is the gold standard in resale franchising companies. NTY franchises five brands, all with a different focus: Clothes Mentor, Children’s Orchard, Device Pitstop, New Uses, and NTY Clothing Exchange. The brands are all resale-based and cover women’s designer fashions, children’s apparel and accessories, furniture and household goods, electronic sales and repair, and clothing for teens and young adults. All are great business opportunities with cutting-edge technology, unmatched support, and lucrative resale franchises. NTY Franchise Company has helped individuals to establish resale stores throughout the United States in many communities, and it has territories available to develop nationwide.

What is your role? What do you enjoy most about your role?

I am the COO of NTY Franchise Company. What I enjoy most about my role is working through the different challenges and opportunities that arise every day. There is constant problem solving and coaching opportunities and I am fortunate enough to hopefully make a difference. Our franchisees have invested a lot of money to open their business, achieve their goals of being their own boss and generate success. The thrill for me is having the opportunity to help them realize these goals.

 

Click here to read the full article on usaweekly.com.

What Makes a Good Franchisee?

So “what makes a good franchisee” you ask?

Watch this quick video featuring our VP of Franchising, Jim Wollman, and find out some of the key characteristics that NTY Franchise Company looks for when partnering with franchisees to grow one or more of our successful resale businesses.

Video: What does it take to own an NTY Franchise?

Do you have the skills and traits mentioned in this video? If so, you would make a fabulous franchisee with any of our five resale brands: Children’s Orchard, Clothes Mentor, Device Pitstop, New Uses and NTY Clothing Exchange!

Still don’t know if you have what it takes, or curious which of our resale brands is the best fit for you? Take our successful franchise owner quiz!

What Makes a Good Franchisee Video Transcription

Do you prefer a text version of the video or want to follow along while you watch? Then check out the full transcription below! 

There is no “best age” to start a business

Jim: We attract people of all ages- from people in their twenties to their sixties and everything in between. People come from all kinds of backgrounds and work experiences too.

Most importantly, we are looking for people with energy and personality. That’s what makes a good franchisee. We can’t teach you how to be a cool person to work for so you need to come to the table with those things that will really help you be successful in these businesses.

Some characteristics of successful franchise owners

Also important are transferable skills. If you had previous successes in your career, then you have transferable skills and that’s good.

What I’m talking about here are previous management experience, staff oversight, budgeting, and communication skills. Those are important because we are going to teach you how to maximize your business and you are going to use those skills to execute and make yourself a successful franchise owner.

NTY Franchise Company’s Proprietary Point of Sale System (POS)

We also need people that appreciate what computers and technology can do because we use it heavily to measure and manage and improve our businesses to the maximum potential. We have proprietary point of sale systems that will help you with inventory turn rates, cash flow management and with employee efficiency.

Our Franchise Loyalty Programs

We have trigger based customer loyalty programs, just like the big business out there. We are using technology to attract, retain, and bring in more customers, and more customers more often. So an embrace of the use of technology is very important. You don’t have to be an IT professional, but you do have to be comfortable with computers.

We are also looking for people who are smart enough to realize that you don’t know what you don’t know and you can really benefit from a shortening of the learning curve. This not only helps you to avoid costly financial mistakes, that one is easy to understand, but what a lot of people don’t think about is that mistakes cost time.

We teach you how to run a successful franchise

We know People want to get going and get moving, become more successful more quickly, and we can help you with that. We are not looking for people who are so entrepreneurial that they want to just change everything coming right out of the gate.

We have a very proven pathway. We have all of the knowledge, training and support that makes up our proven and well-worn operating system. So we know that if you use our tools, use our systems, and execute that you will greatly improve your chances of being successful.

Successful franchise owners “wear all the hats“

A lot of people come from corporate America to begin their business for the first time. Of course we can help you there, but your background says that you wear a big hat and are a specialist and good at what you do.

This may be more narrowly defined in Corporate America. The thing about small business America is that you have to wear all the hats. The good news is that they are really small hats. And we are going to help you in areas that you aren’t as strong in and in other disciplines that you don’t feel as comfortable with. So having this ability to realize that it’s about you and wearing all the hats is an important thing for you to be able to realize and appreciate when you get into a franchise business.

Couples make great franchisees

Now this brings up the question-what are the most common profiles that make up our franchise business? One of the most tried and true profiles for us are couples. Where one covers the household expenses, the overhead, and so on. While the other gets the business up and running and started. Often times with love, opposites attract and they usually have different skill sets, but when you mesh those together they make a very good one hundred percent.

Hands off franchise investors

Another type of profile that has worked well for us are partnerships where you have one financial backer who is a little more hands-off, and another operational partner who is going to be the face of the business and run the business on a day to day basis. An example of this could be an adult with an adult child. Now in our soft line brands, apparel, we do have men who do these businesses and usually what they will do is hire a female manager who has prior retail experience. Conversely in our tech businesses, we have very successful women running our device pit stop. We really do get people of all walks of life and who are given a proven business operating system to follow.

Going solo: solo franchise ownership

Now, the one exception to what I just said is for those who are coming into the business solo. The one other thing that you have to think about is that if this is going to be your new business you may decide to run the business yourself and maybe take that managers salary for yourself in the early stages until you build the business out. But just to be safe, we would encourage you to at least have one year of household expenses tucked away in reserve as working capital above and beyond the initial investment of opening up the business which is covered on our website as well.

-end- 

So there you have it, now you know what makes a good franchisee. Think you have what it takes? Then contact us now to schedule your free consultation!

5 Reasons Why NTY Franchises are Sustainable Businesses

Selecting a franchise is a big decision. That’s why it’s important to choose one that will stand the tests of time and the economy. Here are five reasons why NTY franchises are sustainable businesses:

1. Resale

All five NTY franchises are resale businesses. By its very nature, resale is sustainable. Take the company’s flagship brand Clothes Mentor, for example, which started franchising in 2007 when the U.S. economy was on the verge of a recession. Within the following few years, when other retail stores were struggling, Clothes Mentor stores were thriving. The downturn created an even bigger demand for the resale niche that has continued to grow as the economy improves.

2. Green Concept

Franchisees that partner with NTY and customers that shop our stores value the reuse of quality goods. NTY stores buy products from customers for cash on-the-spot, which puts money back into the pockets of people within the community. This, in turn, helps the planet by extending the life of great clothing, shoes, furniture, toys, electronics and more and keeps those items out of landfills.

3. Customers Love NTY Products and Services

Just like they love making money by selling items to NTY Franchise stores, customers love saving money by shopping with us, too. Our point-of-sale software features a sophisticated buy matrix, which helps NTY Franchise stores price their high-quality merchandise at approximately 70% less than the original retail price. That great value and seeing new items on the floor every day keeps shoppers coming back.

4. Profitability at Store Level

Our proprietary point-of-sale system also helps stores stay on course for achieving high gross margins of approximately 60%, which translates to a faster return on investment, greater profits and the opportunity for rapid growth to multi-store businesses. The following is a snapshot of the return-on-investment numbers for franchisees with our Children’s Orchard brand.

Return on investment numbers for Children’s Orchard:

children's orchard top store sales 2015Children's orchard average store sales 2015

5. Accessible Corporate Team and Franchisee Network

With 200 stores open across all brands, NTY has developed a strong franchise support system that starts with a highly experienced management team. In addition, we have a large and diverse network of franchisees that are easily accessible for validation during the franchising process as well as ongoing support in the form of idea sharing, franchise advisory councils (FACs), potential advertising cooperatives, comradery and more.

Click on the brand logos at the top of this page to find out more about NTY’s five franchises.

 

*$648,342 is the average net sales of the 5 stores included in the top 25% of all 21 Children’s Orchard® stores in operation for entire calendar year ended December 31, 2015. Of the 5 stores included in the average net sales for the top 25% of all stores, 2 stores (40%) met or exceeded the average net sales. There is no assurance, however, that you will do as well. See Item 19 of the Children’s Orchard® Franchise Disclosure Document dated April 26, 2016, for more information.

Personal Shopper Program Gains Popularity at Clothes Mentor Edmond

We love seeing how women are trying—and loving—the Clothes Mentor Personal Shopper program! Check out this awesome article from outlookoklahoma.com about how it’s gaining popularity at Clothes Mentor Edmond:

January Business: Clothes Mentor

By Morgan Dan

Just a few months into its newly developed personal shopping program, Clothes Mentor in Edmond is already seeing a steady rise in women who appreciate the styling advice tailored specifically to them and ease of having a stylist do the shopping so they don’t have to.

Melanie Harris, franchise owner of the three-year-old women’s resale boutique at 3208 S. Broadway in Edmond, said customers are raving about the new, free service. It allows clients to fill out a short information sheet online, talk over the phone with a Clothes Mentor stylist about their goals and budget, and then come into the store to try on a clothing rack full of custom curated outfits suited just for them.

“It’s been amazing to see how people will try on and buy things they never would have picked up if on their own,” Harris said. “And my staff just loves it too. They love that they have a person to put the outfits together for.”

The program is gaining popularity among women who have specific needs and aren’t sure how to dress for them. For instance, Harris has helped women who want to find styles that work for shorter strides, recent weight loss and the body of a new mom.

The Clothes Mentor staff has a real knack for pulling together the perfect outfit from their floor of current, on-trend clothing not just for their customers, but for the dozens of mannequins located around the store modeling merchandise. One of the best compliments, Harris said, is for customers to buy the outfits right off the mannequins. In fact, it happens so frequently, it’s become a running joke among her staff.

“It’s a thrill for our mannequins to be stripped and bought,” she said. “In fact, just last week the mannequin outfits were bought four times in one hour.”

Clothes Mentor, with locations around the country, is no consignment shop or thrift store. Customers sell their gently used, name-brand clothing and accessories to the store, no appointment required, and walk out with cash immediately. Clothes Mentor accepts women’s clothing, no juniors sizes or styles, and accessories of any season as long as they are less than three years old, ensuring customers find contemporary styles.

“We’re here to meet the needs of all women,” Harris said. “Helping women look good while on a budget, that’s what it’s all about.”

Click here to see more from outlookoklahoma.com.