Claudia Zertuche is living her dream.
After emigrating from Mexico almost two decades ago, she and a friend decided to explore franchise ownership. In 2005, they decided to open a Children’s Orchard (a national children’s resale clothing franchise that buys and sells gently used children’s apparel, toys and other items) in McAllen, Texas.
…read the whole Entrepreneur.com story here.
https://www.entrepreneur.com/article/310445
Love Women’s Fashion? Here’s How to Love It Even More!
You know that feeling when your outfit just works? When every accessory is perfect, the fit is fabulous, and the look is exactly what you want? Women who shop for designer clothing at Clothes Mentor get to experience that feeling every day. The power. The self-confidence. The freedom. Now imagine owning the clothing franchise and being able to work — and shop — in the world’s most amazing closet! For those who have a fancy for clothes, an eye for high style and a heart for helping, owning a women’s clothing franchise like Clothes Mentor may be just the career you’ve been craving.
Let’s get real. This is not your grandmother’s thrift shop, full of castaways that no one wants to wear. NTY Franchise Company brands like Clothes Mentor are highly selective in the items they purchase. Designer clothing. Name brands you know and love. Current fashion, gently-used and in excellent condition. Upscale resale clothing, designed to fit and flatter a variety of shapes and sizes. And the women who own a Clothes Mentor franchise get to live their dream of being on the forefront of fashion, while also helping their community. Every day they make customers look and feel their best, at a price they can afford.
JENNAH ESPOSITO: GETTING PAID TO SHOP
Mansfield, Ohio, is located between Columbus and Cleveland, with the closest big clothing retailers an hour’s drive in either direction. Thirty-year-old Jennah Esposito opened a Clothes Mentor franchise in Mansfield last October. She loves women’s fashion and admits it’s a blast to come to work and be able to shop on the job. She also enjoys helping her customers find upscale clothing without paying mall prices.
“There’s something new coming in every day,” she explains. “When stuff comes in the door, we have our pick of the latest fashion finds. I go to work every day and can basically shop, for myself and my customers. I’m the mannequin dresser and almost every day, people undress the mannequins and buy the entire outfit!”
Jennah says the Clothes Mentor business model makes sense on several levels for the women of Mansfield. “Before these kinds of resale stores,” she wonders, “what did you do with your stuff? The only option was donating to charity.” But with Clothes Mentor, local women can repurpose their gently-used clothing and accessories and sell them to the store. The customer makes money on the sale, and the other shoppers benefit from great fashion at a reduced resale price.
“After our clearance sales,” Jennah continues, “we donate to a specific church that gives the clothes away to people in need in our community. We are helping people who can’t afford retail prices still feel good and look beautiful.”
SADIE CHERNEY: STAYING ON TOP OF TRENDS
For 33-year-old Sadie Cherney, keeping up with what’s current in women’s fashion is part of the joy of owning three Clothes Mentor franchise operations in Greenville, Columbia and Spartanburg, South Carolina. Her staff is very selective in the items they accept, purchasing only 25–30 percent of the items customers bring in for sale. “We always stay on top of trends, so we can help customers find what they want in our store,” she says. “We look for spike trends, we buy with caution, and we don’t accept older items.” She’s proud of the quality of clothing in her stores and admits it’s a problem to keep her own closet from exploding. “No matter what anybody says, you’re always shopping when you’re working,” she laughs.
“For mall retail stores, they normally have one specific look,” Sadie explains. “Our diversity of clothing and accessories can be exciting. We sell designer handbags, footwear, accessories and clothing. The quality is good to great.” This franchise owner knows what she’s talking about — because she studies it for fun, and for profit.
Sadie is driven by data, and says she relies on the corporate NTY Franchise Company team for help in keeping her store on the cutting edge. “They are always crunching numbers and that helps franchise owners,” she says. “If we have a clearance sale, we know what customers said ‘no’ to. We know trends and prices. It helps us to be ready to adapt to any type of change. The company is wonderful, supportive and communicative.” It’s the perfect place for a fashion-forward woman like Sadie to work and help others live their fashion fantasies!
Sadie offers her customers the Clothes Mentor Personal Shopper Program at all three locations. The service allows shoppers to fill in their personal details on the franchise’s website. The Personal Shopper then sets an appointment and has items ready for the customer to try on when she arrives. The program is free of charge and there’s no obligation for customers to purchase anything.
CHRIS BARNETT: HELPING WOMEN LOVE THEIR BODIES
The Personal Shopper Programs in Springfield and Westchester, Pennsylvania, are a point of pride for Clothes Mentor owner Chris Barnett. She hires fashion and merchandising grads from local universities who like nothing more than finding a perfect outfit for a customer. “So often women feel bad about their bodies, when they really only need to feel bad about the way the clothes fit,” Chris believes. “Our Personal Shoppers’ mission is to show women how beautiful they are by finding clothes that fit them the best.”
Chris says her mission is accomplished when a customer can run a full cycle at her Clothes Mentor store. “A woman can buy the business suit and Coach briefcase she needs to land a great job,” she adds, “then purchase her work wardrobe, and sell back the items she doesn’t wear very often.” She says Clothes Mentor allows a woman to always have what she needs when she needs it, and what she wants when she wants it.
Chris also appreciates the eco-friendliness of the Clothes Mentor franchise concept. It’s sustainable, not fast-fashion. “You purchase an item, but when you tire of it, you sell it,” she offers. “In our store, we also have three places for our customers to donate clothing they are unable to sell. We then take donations to a local church that distributes the clothing to homeless shelters.” Her stores hold fundraisers on site and participate in “retail therapy parties” for birthdays and other functions.
LIVE YOUR PASSION FOR FASHION EVERY DAY
Owning a Clothes Mentor franchise has given all three of these women a chance to surround themselves with beauty and inspiration. They see the high-end designer fashions that make their way into the store. They chat with customers and share expertise on new trends and timeless styles. They help women make wise fashion choices that fit within their family’s budget. And they all love what they do.
“Our staff is friendly, and customers love that there are so many sizes and styles,” says Jennah Esposito of her Ohio Clothes Mentor business. Once people discover her store, “they say it’s so beautiful and it’s so nice to have it in our town.”
For Jennah, Sadie and Chris, owning a Clothes Mentor franchise is more than a great investment. It’s a way to live their passion and help other women. And in case you’re wondering, the side benefit of working in the world’s best closet allows them to keep their own closets stocked, season after season, with fabulous clothes they purchased on the job.
WHY WOMEN FRANCHISE OWNERS LEFT THEIR CAREERS TO BUY A RESALE CLOTHING FRANCHISE
It takes more than a leap of faith for a woman to jettison her former career and buy a clothing franchise. It takes guts, hard work, and the right timing. But it happens, and the rewards can be far greater than the risk. Several NTY Franchise company franchise owners have followed their passion to a career in women’s fashion, and they’ve never looked back.
Pharmaceuticals to Fashion
Chris Barnett is nearly 50 and had worked for years as a partner in a law firm before becoming an executive director at a large pharmaceutical company. Five years ago, however, she and her attorney husband Stephen decided they wanted to do something to show their daughter what they truly believe in, and it wasn’t the corporate grind.
“We believe in women helping women,” Chris explains, so they purchased their first Clothes Mentor women’s clothing franchise in Pennsylvania. “Our franchise enables our 10-year-old daughter (Eliza) to see women cheering each other on.” The business model intrigued them: The store purchases designer clothing and upscale fashion from local women, then re-sells the items at a fraction of retail prices to customers who appreciate the value. Everyone wins.
The couple knew they wanted to teach Eliza the value of a dollar. To do that, they show her how women save money at their store by purchasing gently-used, name brand clothing at a much lower cost than they’d pay at the mall. The Barnett’s also enjoy practicing the “mentoring” aspect of their Clothes Mentor franchise. “Stephen is good with development,” Chris says, “and he works with the young team members to help build their portfolios.”
In addition, the couple relies on the mentoring and support they get from NTY corporate directors. In fact, they liked the concept so much, they now own two Clothes Mentor women’s clothing franchises, in Westchester and Springfield, Pennsylvania.
From the Classroom to the Dressing Room
While Chris and Stephen left high-powered careers, 52-year-old Angie Geldert gave up a 20-plus year career as an elementary school teacher to purchase a Children’s Orchard kids’ clothing franchise in Murfreesboro, Tennessee. She and her accountant husband Jeff had moved from Minnesota, where the education system was much different. After teaching for a year in her new town, she felt ineffective in the classroom and needed a change.
“I wanted to still be part of the community, help people, and still have contact with families and kids,” she recalls. The Children’s Orchard franchise was the perfect fit, offering her the connections she craved, as well as opportunities for a first-time franchise company owner to learn quickly.
“A competitor moved in down the road and opened two weeks ahead of us,” Angie says, “so there were unforeseen challenges at startup.” She had to figure out a way to stand out in her town’s growing children’s upscale resale market. She credits the NTY corporate structure with helping her feel supported at every turn. “Through my discovery process, other ladies were so willing to give me information to help start and grow the business,” she remembers. “I felt we had a safety net, from corporate and from other franchise owners.” She also doubled down on customer service and educating her staff, which has paid off in impressive sales growth each month.
It’s truly a family business, with Jeff doing the books and Angie and her college-age daughter running the store. Angie sets the schedule, giving her the flexibility, she needs as a busy working mom. She is available to drive her daughter to doctor’s appointments and has time to shop for groceries and hobnob with customers she runs into in town. She believes opening the Children’s Orchard franchise has helped her family acclimate to their new neighborhood — and become a valuable part of the Murfreesboro community.
Mom and Mentor
For 29-year-old Jade Moore, graduating from a bible college eight years ago brought about an epiphany that led her to purchase a Clothes Mentor franchise. She thought she would become a church staff member, but a visit to a resale clothing store prompted her to take a totally different career path.
“I saw the opportunity to own this franchise as a blessing,” Jade confesses. “We wanted to fulfill a need for a resale store in our area.” She and her mother loved the concept of bringing upscale and designer fashions to Little Rock, Arkansas. Her parents helped her with her initial investment, but Jade’s hard work and perseverance made the business a success. So, what’s her secret? “We buy for every type of customer: business women, stay-at-home moms, plus-size and even pregnant women.” That’s a policy Jade herself appreciates; because this mother of three is expecting her fourth child in a few months — and yes, she’s a Clothes Mentor customer!
The NTY corporate philosophy has an even deeper meaning for Jade. “Clothes Mentor helps support the woman who is comfortable in her current body,” she explains, “and those going through transitions such as a weight loss journey.” It’s that positive reinforcement for all women, plus a dedication to staying on the cutting edge of fashion, that keeps her excited about coming to work.
Jade is confident her staff doesn’t miss out on any type of style, even though Little Rock has not yet attracted large, big-name boutiques. “We don’t have big designer stores like Chanel or Louis Vuitton,” she says. “But when we do get those kinds of high-end items in the store, it’s a serious treat for our customers!” She says her recurring social media bursts and great word-of-mouth advertising keep her customers apprised of every exciting new arrival. They get designer fashions at resale prices, and those higher-end items often sell quickly.
Despite her early success as a Clothes Mentor owner, this multi-tasking mom hesitated when her father suggested she purchase a Children’s Orchard franchise for Little Rock. She worried she might not have the time and energy to devote to two business while she and her husband were raising their young family. “But we got a great location right next to Clothes Mentor and it’s great for me and my children” she admits. She opened her kids’ resale franchise in April of 2017 and is excited to see the items customers bring in for purchase. The Moore’s had sold all of their baby items after their youngest turned two. Now, Jade can purchase everything she needs, gently-used, for her new baby. And best of all, she says, she can sell back all of the clothes, toys and gear to Children’s Orchard when she no longer needs them!
Jade, Angie and Chris come from diverse backgrounds, but they all share a love for their new career in upscale resale. Each woman followed a dream to fashion a balanced life for her family and help her community in the process. Each works hard to keep her store running smoothly. And each one says she’s happy she made the choice to leave her past job behind and create an exciting future with her NTY Franchise business.
OWNING AN UPSCALE RESALE STORE IS SMART BUSINESS. HERE’S WHY.
While many traditional brick and mortar retailers continue to struggle, the upscale resale industry is booming. Consumers seek out resale to both shop and sell their gently-used stuff and entrepreneurs are cashing in on this growing trend.
A lot has changed over the years leading to this evolution; including the high-return, lucrative profit opportunities upscale resale can provide entrepreneurs now and well into the future.
WHY IS UPSCALE RESALE SMART BUSINESS?
TIGHTER CONSUMER BUDGETS
According to latest data from the Bureau of Labor Statistics, the typical U.S. household now spends about 20 percent of their annual budget outlays on health care, personal insurance, life insurance, pension-like products and social security. This is at a time when they are spending a disproportionate amount of their disposable income on communications, related technology and entertainment/experiences. Just consider what we spend on wireless, cable, internet and smartphone payments each month. Family budgets are stretched leaving less ability to spend on full-price fashion and even full-price electronics — including our smartphones we love so much. And, the growing desire and focus on spending on experiences; such as vacations, amusement parks, salons, etc. only amplifies this crowding-out dynamic.
CULTURE CHANGE
While having less money to spend on full-price items, consumers have grown accustomed to opportunistically monetizing value for the items they no longer need. Both of these trends play right into the upscale resale industry. Whether out of necessity or not, it has become widely acceptable – and in fact often socially admirable and popular — to purchase and sell secondhand items such as clothing, electronics and household items/wares. While thrift shops have always provided this service on the low-end, the trend seemed to evolve more mainstream with the dawn of eBay. Now, it has accelerated and is moving into the high-end with upscale resale. Everybody wants in to buy stuff, sell stuff, and enjoy the thrill of the experience. This is best exhibited by Clothes Mentor, the highly successful upscale resale clothing franchise, a national franchise in the NTY Franchise Company Family of Brands. Clothes Mentor has grown from two stores (in one state) in 2006; to 145 stores (in 42 states) in 2018 — with many more in development. This upscale resale cultural evolution is booming with no signs of slowing down.
LOVE OF HUNT
Whether on eBay or at Costco, Marshalls, Ross Stores, etc. consumers have grown to love a good hunt for deals. More recently though, as a result of rapid store count growth, the selection, quality and value of merchandise at many discount retailers has waned; leaving fewer opportunities to feel satisfied finding that treasure. With a wide variety and rapidly evolving inventory of all types of unique, locally-curated brands at attractive prices, upscale resale stores provide the ultimate treasure hunt satisfaction.
LOVE OF CASH
One thing consumers appreciate more than the love of hunt is the love of cash. Upscale resale stores provide cash on the spot for items they accept from customers — another key driver of their growing popularity. This is not only good for the consumer, but also for the store owner. Initial investment is lower since there are no big, risky long-lead inventory buys (or large working capital requirements) that come along with them. Fully in control of the type, timing and level of merchandise buys from customers, the upscale resale store owners can dynamically and daily control inventory cost and cash management as they see fit.
Importantly, as James Wollman (VP of Franchising at NTY Franchise Company) notes, “Our franchises buy and sell the YES votes of what people like in fashion, electronics and other household items; we don’t deal in the NO’s that are the primary inventory of most other major discount stores.” This all results in much smarter inventory, higher inventory turnover, enhanced budgeting and working capital flexibility, and most importantly, gross profit cash margins of roughly 60 percent — well above the industry average.
PRESTIGE IN REACH
While fashion and trends change all the time, most consumers still love to have a few prestigious or conspicuously flashy items of clothing; while typically priding themselves on nameplate laptops, smartphones, headphones, etc. But in today’s economy, some top name brands are simply out of reach for many. This is the case even at discount retailers where discounts are not as great as in the past from rising product-sourcing costs — particularly freight and shipping. Upscale resale stores are not exposed to these unruly costs and provide all consumers with the opportunity to get that prestige product and feel proud and satisfied as a result.
MILLENNIALS
Often well educated, but with less money at their disposal, millennials don’t enjoy paying full price for retail but still enjoy the hunt of shopping. They typically pride themselves on bargains; especially if it will yield an environmentally friendly outcome.
Generally cash-strapped, many millennials are still saving for their own place to call home and are being encouraged to save more aggressively now for retirement. By 2020, they will represent roughly one-third of the adult population. This is a great long-term demographic trend for the upscale resale industry to leverage. This trend is expected to continue long-term as millennials’ children are brought up in — and at an early age becoming well accustomed to — the resale lifestyle.
ENVIRONMENTALLY FRIENDLY
You may not think much about this, but a tremendous amount of global resources — such as energy, minerals, chemicals and water — are used to make a single item of clothing, electronic gadget, or household item. According to several estimates, it can take up to 1,000 gallons of water to grow the cotton for — and then produce, a single pair of jeans. A t-shirt can require up to several hundred gallons. This is why global clothing brands are now focusing so much on sustainable apparel.
The resources used to create products not only include the raw materials, design and production expense; but also packaging, shipping and marketing. A lot of energy is also used in collection and disposal. Resale provides a second or third lease on life to millions of products annually; which is not just good for the environment — it’s great. As just one example of how profound this can be, since 2007 Clothes Mentor alone has recycled more than 42 million items of mall brand and designer clothing, and paid women more than $180 million in cash for gently-used items. Importantly, while millennials are most known for appreciating environmentally friendly consumerism such as this, going green is an ongoing trend still gaining traction among all generations.
COMMUNITY FRIENDLY
Upscale resale is good for local communities. They encourage locals to keep their closets and residences uncluttered and fresh. With great values, they provide much-needed flexibility for local families’ budgets. With regular customer buzz, the shopping flow to the area benefits other businesses and the local tax base. Moreover, store owners and key employees get to know their regular clientele — establishing relationships that last for years. “Fashion is Fun,” proclaimed NTY’s James Wollman when describing how owning an upscale resale franchise can be more enjoyable on a daily basis than many other franchise concepts like eateries. While that may be the case, what’s most enjoyable is the multi-faceted annuity flow of business (and high return on investment) that can result from this unique communal retail activity.
EFFECTIVELY CHARITABLE
When upscale resellers are not successful selling items in a certain amount of time, they typically donate them to charity and are able to monetize the donation as a business deduction. While this is typically a very small percentage of the overall inventory turn, it is a win-win for those less fortunate and for the franchise owner seeking to maximize returns.
PROVEN BUSINESS MODELS
In the past, starting your own resale business without any infrastructure or support network was a fairly risky and daunting task. However, today with the proven business models and techniques of a leading franchise partner, the heavy lifting has already been done and the road to high-return success well-paved. With over one hundred years of collective upscale resale experience; and five successful major brands under its belt, NTY (New to You) Franchise Company is an ideal partner to get you fully up, running, and remaining on the path to high-returns success.
You may ask yourself, what makes the NTY business model so successful? Beyond a century of collective franchising experience and among a host of key factors is a serious focus on: 1) Bright, clean and fresh-aired stores; 2) Smart store layouts; 3) State-of-the-art inventory managing, pricing and point of sale cloud-based software systems; and 4) a firm grasp on all the “big data” needed to make wise purchase and sell decisions throughout the day — every day.
NTY FRANCHISE COMPANY AT A GLANCE
Founded in 2006 and Located in Minnetonka, Minnesota, NTY Franchise Company is a pioneering and highly-experienced force in the rapidly growing category of upscale resale retailing. It is the umbrella organization for four proven national franchise brands: Children’s Orchard (kids clothing franchise); Clothes Mentor (women’s designer clothing franchise); Device Pitstop (electronics repair and resale franchise); and NTY Clothing Exchange (teens and young adults clothing franchise).
NTY Franchise Company specializes in working with entrepreneurs at every stage of establishing one of these five successful upscale resale branded concepts including: Research and Discovery; Business Planning; Store Location and Leasing; Financing; Design and Build-out; Point of Service Software and Systems; Coaching and Managing; and Marketing.
To learn more about NTY Franchise Company — and the lucrative opportunities in upscale resale franchising — explore our main page or feel free to just give us a call! (952)-923-1223
