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:
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.
You can be very successful with just one NTY Franchise store, but our business model is easily scalable, too! Find out more about this topic in the two quick videos below featuring NTY’s VP of Franchising.
Check out this article from altoonamirror.com about why franchising is a smart business move. For one, it allows you to build your own business with the support of a proven system. Learn more:
Mirror photo by J.D. Cavrich.
Franchises gaining in popularity
By Walt Frank
After his family business was sold, Mike Folcarelli said he was “looking for something to do.”
So in 2014, Folcarelli opened a HoneyBaked Ham Co. and Cafe franchise in the Pleasant Valley Shopping Center.
“I thought at my age (49 at the time), this was the best way to go, instead of starting something from scratch. They have proven marketing and brand recognition,” Folcarelli said. “I looked at others (franchises), not just in the food business. I just decided on this — it just fit my lifestyle.”
Mike Burgmeier worked at the Greenwood Meadows while in high school and college.
“I have an entrepreneurial flair. I knew I always wanted my own franchise,” Burgmeier said.
Burgmeier is the franchise owner of the Chick-fil-A restaurant set to open in March at 106 Sierra Drive, the site of the former Montezuma Mexican Restaurant.
“I started to pursue this in 2013. I looked at several other types of franchises, but I wanted to be in the food retail industry. Chick-fil-A is dedicated to customer service. Their core values and my core values lined up,” Burgmeier said. “I am pleased I have the ability to bring in a franchise like Chick-fil-A, which does tremendous things for the community. It will be a nice place for people to sit down and enjoy a good product. I am excited about that.”
Between 12,000 and 15,000 new franchise businesses open every year in the United States, or between 30 and 40 per day.
There are an estimated 733,000 franchise business establishments in the U.S., meaning about 3 percent of all businesses are franchises, and franchise businesses employ about 7.6 million people directly, said John R. Reynolds, president of the Franchise Education and Research Foundation.
Reynolds said the franchising industry has averaged about 2 percent to 3 percent growth per year in the past few years.
Franchises are very popular these days.
“Franchises are popular because they provide business owners with a systematic approach to owning and operating a business that provides branding, marketing, training and support. It combines the resources of the franchisor and franchisees in the network to get a multiplier effect,” Reynolds said. “Many people buy into a franchise because they want to go into business for themselves, but not by themselves. Being part of a franchise system gives them advantages of not going it alone.”
Judy and Anthony Branda have owned the Greenwood Meadows franchise for about nine years.
“My husband had talked to the people who owned it and told them if they ever wanted to sell it, to let us know. We thought it would be a fun business to get into; when people come in for ice cream, they are happy,” Judy Branda said.
Melvin Milne has owned the Budget Blinds franchise in Altoona for nine years, and the one in State College for five years.
“I was in the construction business. I normally worked for someone else and this was a way to get started; a franchise helps you jump-start a business,” Milne said. “I’ve been in this nine years. The economy was not the greatest when I started. It was difficult at first, but the last couple of years it has been nothing but referrals and repeat business.”
David Rosen is the owner of the Griswold Home Care franchise in Hollidaysburg. He also owns two other Griswold franchises.
“I was a do-it-yourself type of person and I wanted to be more of a franchise person. I liked the idea of partnership. The company was moving in the right direction, and I felt it was a solid company,” Rosen said. “Partnerships bring some expertise and help you achieve success. For me, I really liked the mix and felt it was a good fit.”
Owning a franchise has advantages.
According to the International Franchise Association, owning a franchise allows you to go into business for yourself, but not by yourself. A franchise provides franchisees with a certain level of independence where they can operate their business. A franchise provides an established product or service that might already enjoy widespread brand-name recognition. This gives the franchisee the benefits of a pre-sold customer base that would ordinarily takes years to establish. A franchise can increase the chance of business success because it is associated with proven products and methods. Franchises also offer consumers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.
“You have a proven product and the system is in place. You don’t have to re-invent the wheel, just follow the system and try to improve on it in your local market. It comes down to hiring the right people and training them and serving the customers,” Folcarelli said.
But there can be some disadvantages to owning a franchise.
The franchisee is not completely independent. Franchisees are required to operate their businesses according to the procedures and restrictions set forth by the franchisor in the franchisee agreement. These restrictions usually include the products or services which can be offered, pricing and geographic territory, according to the IFA.
“You have to recognize that you don’t have the luxury to mess with branding and changes,” Rosen said.
Owning a franchise can take a lot of work.
“You do put in a lot of long hours. In this small business, you are the HR guy, the purchasing guy, the sales guy. There is a lot more responsibility than at a larger company. You wear all of the hats,” Folcarelli said.
It is important to do your research before purchasing a franchise.
“Do your homework on any franchise. There are good ones, there are bad ones, there are great ones and horror stories out there,” Milne said.
The first step is to develop a business plan.
“There are many franchise businesses to choose from. What are the types of businesses that appeal to you that also meet your personal and financial goals in your business plan? Lastly, get advice from a qualified franchise attorney before accepting any franchise offers or signing any franchise agreements,” Reynolds said.
“Check out the company as a whole, its financial situation, how long they have been in business, what kind of talent do they have. Talk to other franchise owners to see if they are willing to talk to you about the franchise. Talk to new ones and others who have been in it for three to five years to get their perspective on the franchise,” Rosen said. “I looked at four or five organizations; Griswold emerged for me. I liked its vision and mission of serving people.”
Reynolds said it is not difficult to get a franchise.
“There are franchises available for less than $100,000, and others for more than $1 million. It’s important to consider a franchise business that meets your personal and financial goals and plans,” Reynolds said.
What makes NTY one of the 50 fastest-growing private companies in the Twin Cities area? Find out in this excerpt from an article by the Minneapolis/St. Paul Business Journal:
We Asked Chief Operating Officer Chad Olson:
What’s one business decision you made in the past three years that’s been critical to your firm’s growth?
Putting as much information onto our franchise development website as possible. In the past this was taboo, it was normal to hold your cards close. In today’s world information is king. If you want to sell franchises you need to have your information front and center.
Photo by Nancy Kuehn and courtesy MSPBJ; Chad Olson (left) and Ron Olson (right).
Learn more about the Fast 50 list in this excerpt from a note about the project by editor Kim Johnson:
Fast 50 2016 Editor’s Note
It isn’t the easiest task to get revenue figures from private companies. Our reporters are frequently told, “We’re a private company. We do not share revenue information.”
It’s even more of a stretch to ask them for actual financial statements.
However, each summer the Business Journal doggedly searches the Twin Cities 24-county metro area to find the region’s fastest-growing private companies. We look for independently owned, privately held, for-profit businesses that are headquartered here. We look for year-over-year revenue growth from the three most recent fiscal years. We look for companies with at least $1 million in revenue from the first of those three years.
And then we require them to send in three years of financial statements that have been audited or reviewed by an independent accountant.
And those documents go to our own accounting partner for further verification and number crunching.
It’s a lot to ask of private companies used to keeping their revenue numbers close to the vest. But it’s imperative we ask this of each company submitting a nomination for our annual Fast 50 awards. Everyone is held to the same standards to ensure the integrity of this list, which showcases some of the state’s best-in-class enterprises.
These companies aren’t just growing their bottom lines. They are creating jobs at extraordinary rates. They are providing growth opportunities for the businesses that serve them. They are boosting Minnesota’s economy.
So thank you to all the companies that submit nominations for this project — not just for the above, but for being willing to jump through the hoops we ask you to in order to produce this awards publication.
Fashion of Philly blogger finds amazing outfits for a fraction of the original retail cost at upscale resale store Clothes Mentor Springfield. Check out one ensemble from her haul below, then read the full blog post at fashionofphilly.com to see more.
When it comes to Fall Fashion, what is your favorite item to stock up on? Are you obsessed with oversized sweaters, knee high boots and comfy leggings? Well I have good news, I found the cure for your fall shopping fever! Clothes Mentor is an amazing consignment shop featuring some of your favorite designers at price points you wouldn’t believe! The Clothes Mentor store in Springfield, PA invited me to come and check out their huge selection of clothing, jewelry, accessories, and shoes. The staff there was so nice and ready to help in any way, whether it be selling your “gently used” clothing or some styling advice…
Read this article to see one customer’s experience with selling items to her local store. You can also see the original article with more photos at springbargains.com.
I’ve never sold or consigned clothing before, but with trying to make sure that I’m only wearing clothes I love combined with the unfortunate event of gaining weight in the past year, I had some newer clothing that doesn’t fit well and I thought I’d try consigning it. (OK, not really consigning, where you don’t get paid until the store sells it, but taking it to a place where they give you cash for it up front. But I always think of it as consigning because I always think of these stores as consignment stores!)
I chose to consign at Clothes Mentor, because it seems like a lot of the other stores in town (Plato’s Closet, Seven Status, Hut no. 8) cater towards a younger crowd and my clothing is likely not hip enough! I’d been into Clothes Mentor once, and thought that the clothing I wanted to sell was on par with what they sold.
So, I took a small box of clothing in to see how it worked and if I’d actually get anything for it. They paid me about $2.50 per item the first time, and then after realizing I really wasn’t going to fit in a few things in the near future, I sold clothing a second time and got closer to $3.00 per item. Here’s what I learned.
#1 – They are serious about the two-years-old-or-newer rule.
They really won’t take anything that’s older than about two years, even if it’s still theoretically in style (according to my finely-tuned sense of fashion – ha!). I had a couple of dresses from Banana Republic that were really cute, but several years old, and they passed on them and everything else that was older than two years.
I did figure out that you can look at the tag on your clothing to see when it was manufactured, so you have an idea of how old it is. The tag on side of the garment on most name-brand clothing has a date on it, like this:
I haven’t found that off-brand clothing has the date on the tag, but they also will not take anything that’s not a name brand, so for purposes of selling clothing, it doesn’t really matter. I personally wouldn’t even bother taking in something that’s not a name brand, no matter how cute it is, because in my experience they really aren’t going to buy it.
(By the way, if you are going off the date on the tag, I think that they have a little leeway with it, because clearly stuff that was manufactured in July for a fall line of clothing would be in stores for awhile, so I would guess that it’s probably 2.5 years after the tag date.)
Frankly, I was a little surprised at a few of the items that they rejected, because I knew I’d seen stuff in the store that was older-looking than what I’d brought in, but they clearly know how to run the shop, not me, so I wasn’t upset or offended that they didn’t take some of my items. 🙂
#2 – You need to bring in clothing without any damage.
They don’t seem to like items that have any sort of damage, even a minor thing like a pulled string that could be easily be cut off and be as good as new. So, I would definitely check your garments over well, and clip any loose threads. (I also think that it doesn’t hurt to bring in clothing that’s folded neatly and not horribly wrinkled.)
#3 – They won’t take turtlenecks.
This one surprised be, but I learned the second time I sold items that they won’t take anything with “high necks” (in my case, it was a turtleneck). I asked why and they said they just don’t sell well.
#4 – Expect to get an average of about $3 per item.
When they pay you for the items, they give you a receipt that shows what they purchased from you, but it doesn’t say how much they paid for each item. In my case, the first time I sold items, they bought a pair of shoes, some tops, and I think a scarf; and I got an average of about $2.50 per item.
The second time, I had a couple of pairs of pants and some tops and got just under $3.00 per item. I’m totally speculating here, but I think they probably paid more for the pants and less for the tops, because some of the tops were just t-shirts.
I’m sure if you brought in some really nice dress apparel, you’d probably get more per item, but I wouldn’t expect to get too much more.
One other thing that I will mention is that you drop off your clothing and then have to come back to pick it up and decide if you want to accept the offer that they give you for the clothing that they do want to sell. The first time I did it, they were really busy with drop-offs and mine wasn’t done until several hours later. (You have to pick up the items they didn’t want in 72 hours.)
The second time, they told me they’d have it ready in about 15 minutes – I chose to go run another errand instead of sticking around, but just keep in mind that it could be a really fast process or it might be a few hours, depending on how busy they are.
Overall, I’d say that consigning/selling at Clothes Mentor was a great experience. Since they pay you on the spot, it’s a great way to get extra cash quickly even if you won’t get rich doing it. 🙂 I would totally do it again – hopefully next time because I’ve lost a little weight and can sell items as I’m sizing down! 🙂
Have you sold or consigned clothing?
I’m far from an expert! Please share your tips for consigning or selling adult or children’s clothing!
Check out an article about Clothes Mentor Spartanburg, which is the third store for Bill and Sadie Cherney in South Carolina:
Bill and Sadie Cherney are owners of Clothes Mentor, a women’s resale shop located at 1450 W.O. Ezell Blvd. in Spartanburg. Photo courtesy Tim Kimzey/[email protected]
Sadie and Bill Cherney own three Clothes Mentor franchises, with locations in Greenville, Columbia and — as of Jan. 7 — Spartanburg. The Spartanburg location of the high-end women’s resale shop, 1450 W.O. Ezell Blvd., is currently adding inventory from local sellers. Sometime in March, the store will open to customers looking to buy gently-used designer clothes, shoes and jewelry. The business has also established a partnership with Miracle Hill thrift store, which will take clothing the store doesn’t buy so women who need it can find it easily at a cheap price.
Following in family footsteps
Sadie: My parents were in resale before. (Bill and I) were living in Las Vegas. We knew that we wanted to be on the East Coast. We love the Upstate, and we knew we wanted to be in the Upstate. We heard about this concept and felt like it was a really great fit and that it would fill a need. So, we opened our store in Greenville, and that was in May of 2013.
Fashion forward
Sadie: We sell women’s high-end resale. We try to fit every woman. We do sizes 0 through 26. We do maternity, petite, athletic wear. Women can sell items for cash on the spot, which is convenient and easy. Then, other women are able to reuse those items, give them a purpose and restyle them. There’s something really awesome about providing someone with clothing they wouldn’t otherwise have access to. We believe a lot in quality, and that wearing quality garments that can last for a long time doesn’t have to be expensive.
The entrepreneurial bug
Sadie: I’ve always had an entrepreneurial bug. Bill is so good with people. We knew we wanted a franchise. We wanted the structure of a franchise and the support of a franchise. This lets us both kind of showcase what we’re good at.
Bill: Women’s fashion isn’t a forte of mine. But, I’ve taught for over 10 years. I taught at Greer High School for four years. Working in a field that’s primarily populated with women is not new to me. While I’m not an expert on the fashion side of the business, I enjoy learning about it.
The buying process
Sadie: Right now, we’re in a buying process. That usually takes about 8 to 10 weeks, where we amass the inventory from our local sellers, the individuals who sell to us. Then, we’ll have a huge grand opening. We have a soft target date, but we’re not 100 percent sure. Definitely hoping for March.
Small business success
Sadie: Sometimes, with a small business, people get hung up on the ways you can’t compete with a big box (retailer), but at the end of the day, as a small business, you’re mobile and connected to the people that help you and work with you. I know it makes our jobs much more fulfilling, and I hope it does the same for our staff.
Getting ready to open
Sadie: Oh my gosh, our grand openings are bananas. Both of the openings have had easily over 100 people in line. They get there at, like, 4 a.m. We’ll bring them coffee and doughnuts. It’s crazy. It’s nonstop for 12 hours. It’s awesome because it’s like this big party to celebrate everything we worked to build, and a frantic after-party to get everything back out on the floor. In March, if we have that crazy grand opening, we will have merchandise to serve our customers. So that way, in the following day and week and month, they’ll still have fresh product.
Bill: We always try to put out hundreds of new items every day in all of our locations. We want people to come back and be excited about what they’re going to see and what they’re going to find.
The following excerpt was taken from the article “Creative Narrative, Original Messaging Offer Powerful Marketing for Unique Franchises” in the January 2016 issue of Franchising World:
NTY Franchise Company is the parent company of five unique re-sale based brands that focus on women’s designer fashion, children’s apparel and accessories, furniture/household goods, electronic sales and repair, and clothing for teens and young adults. Its franchise model is designed to sell gently used goods at 70 percent off the new retail price. NTY Franchise brands are attractive, as they save customers money and pay sellers cash on the spot for items they are no longer using.
NTY Franchise Company is Number 28 on the Fast 50! Take a look at this interview with Chad Olson. Source: bizjournals.com
We asked Chief Operating Officer Chad Olson:
What was a key accomplishment for your company in 2014? Our largest brand, Clothes Mentor, had a record year for new store openings — 34 in 2014.
Chad Olson (left) and Ronald Olson of NTY Franchise Company.
What was the most difficult challenge of 2014, and what did you learn from it?Keeping the lead funnel full for selling new franchises. We learned we needed to focus our online strategy for generating leads and we needed our people to be in the right positions to qualify the leads and sell the prospects on our franchises.
Where do you see your company in five years? Crossing the 500-store mark and well on our way to seeing our longer-term goal of over 1,000 stores across America coming into view.
How does it feel to be one of the Twin Cities’ fastest-growing private companies? We are excited to be one of the Twin Cities fastest-growing companies. But the reality is, we have a lot more to accomplish and a lot of room to keep growing.
The little black dress is so famous, it’s known by its initials: LBD. Coco Chanel introduced the little black dress in the 1920’s, and it has remained popular ever since.
The LBD comes in many styles, lengths, fabrics, and textures – but it always works for any occasion and any season. In fact, why not try a great LBD for spring? It can be paired with elegant jewelry and silk wraps for events, dressed with a conservative blazer or light cardigan for business, and adorned with bangles and fun necklaces for a night out on the town.
Whether it’s short and body conscious or long and flowing, it works for any age or any shape. And if the black is too conservative in its style, add a great statement necklace, a patterned scarf around the waist, bright-colored pumps or sandals, or some tall high-heeled boots. One of the best things about the little black dress is that it can be like a blank canvas that can be accessorized and made more chic and modern by what you add to it.
For spring, dress the LBD up with your favorite sandals and a colorful belt. At Clothes Mentor we have a great inventory of little black dresses – and accessories – and they are like-new and up to 70% off of retail prices. Come in and find that perfect little black dress for spring weddings and graduations, or just a fun cotton dress for warmer days and evenings. That’s the beauty of the little black dress – anything works!
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.
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.
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.
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.
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.
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.
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.
Kaitlynn McShane
Graphic Designer + Marketing Coordinator
Graphic Designer + Marketing Coordinator
Ashlyn Aarness
Social Media Specialist
Social Media Specialist
Gina Geary
Franchise Business Consultant
Franchise Business Consultant
Alice Heidenreich
Franchise Business Consultant
Franchise Business Consultant
Susan Praus
Training Manager
Training Manager
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.
