Learn about NTY Franchise Company’s merger with Children’s Orchard in this quick read from forbes.com. Find out why Chad Olson and team decided to merge, how they did it and where the Children’s Orchard franchise is headed in the near future as a result.
Photo courtesy forbes.com.
Secrets to a Successful Small Business Merger
Every small business merger is unique, but they all share a few common challengers, from choosing the right partner, to managing the transition, to branding and post-merger management. Here’s how five small business owners pulled it off.
Building a Franchise
A longtime franchise veteran sought to turn his prototype children’s apparel resale shop into a national franchise by merging with Children’s Orchard, a recognized brand with 32 stores.
Why Merge? Olson’s prototype store, NTY Kids, needed a recognizable, trusted brand to grow. Children’s Orchard needed point-of-sale software to bring its stores into the 21st century—technology available through another business Olson owned.
What Happened Olson and his team moved slowly, announcing the merger to franchisees over the phone, and not making a single change to operations until they had met with each owner face-to-face. “It was all about building that relationship and credibility with the franchisees.”
Takeaway A merger can be a frightening prospect for franchisees because it affects how they run their individual businesses. “These people are entrepreneurs. They’ve invested money. This has been their life and blood and livelihood for a lot of years.” Patience and empathy is vital.
NTY Franchise hosted its first-annual conference for Children’s Orchard earlier this week. Many hardworking and inspiring franchisees joined together in Minneapolis, MN, for store tours at the Mall of America, sessions about the NTY point-of-sale system, reporting, marketing, hands-on experience at the corporate Children’s Orchard store and plenty of fun.
The following snapshots show just a few of the highlights from the 2016 Children’s Orchard conference.
Watch this video message from Chad Olson, NTY Franchise Company’s Chief Operations Officer, and be inspired to open your own resale business! Find out what makes NTY’s five resale brands unique as well as get a feel for our company values. Check it out now:
The latest Device Pitstop is opening its doors in Eden Prairie, MN, this week. Check out an article featuring the new store in a local newspaper below. Or read it online at swnewsmedia.com.
Jeff Kiffin owns the Device Pitstop computer and mobile-device store in Eden Prairie.
Device Pitstop, a national chain that buys, sells, trades, services and upgrades computers and mobile devices at low cost, recently opened in Eden Prairie, according to a news release.
The store is hosting a grand opening on May 5 at its location at 8252 Commonwealth Drive. The activities include $25 gift card giveaways and drawings for tablets, computers and other items. The business is owned by Chanhassen resident Jeff Kiffin.
“Device Pitstop carries a wealth of laptops, desktops, tablets, smartphones and accessories including Windows, Apple, Mac, iPhone and Android devices and parts. They sell certified products well below original prices, backed by 30-day and extended warranties,” according to a news release.
“They buy customer equipment for cash or trade in. They also provide expert on-site repairs and upgrades. Whatever the need, Device Pitstop has a complementary product or service.”
Clothes Mentor was recently named Franchise of the Day by Entrepreneur. Read the brief write-up here, or check it out at entrepreneur.com.
Franchise of the Day: Up Your Style With Some New Duds
When it comes to style at a low cost, Clothes Mentor has got ya covered.
The chain isn’t the first resale franchise founders Lynn and Dennis Blum opened. Previously working on two others, Once Upon a Child and Plato’s Closet, the duo sold them to Grow Biz International (now Winmark Corporation).
Clothes Mentor opened its doors in 2001 offering a place for women to buy and sell shoes, purses, clothing and other delightful duds. It caught the eye of Grow Biz co-founder Ronald Olson, who had left the company in 2000. He began franchising Clothes Mentor in 2007.
Today, the franchise is ranked as No. 260 on Entrepreneur’s Franchise 500 list for 2016.
This article, originally published on huffingtonpost.com, mentions NTY Franchise as a growing company in the booming resale industry. Read on to learn why franchising a resale store is such an appealing option for entrepreneurs:
Graphic courtesy huffingtonpost.com
By Yatin Khulbe
It goes without saying that finding the right balance between a successful retail strategy and an approach that sets yourself apart can be a big challenge.
After all, an increasing number of new businesses fail each year while attempting to break into the seemingly impenetrable arena of modern retail.
The wall of the booming big box and major brand monoliths isn’t entirely impenetrable, however. Surprisingly, a number of upcoming retail contenders and franchises have taken an unorthodox approach to the resale market in recent years.
They prefer to focus on cultivating an upscale atmosphere and level of service usually reserved for their conventional and big brand counterparts.
So how did “resale retail” go from a budget niche to a booming new brand of resellers with increasing interest and profit margins?
Here are some of the points which encouraged resellers in coming up with smart and unconventional strategies in recent years:
Flexible Points of Entry
The unique nature of upscale resellers as an up-and-coming industry often mean that aspiring entrepreneurs looking to break into store management or ownership can enjoy more substantive options to finance a small business.
The availability of franchise opportunities among national resale parent companies has skyrocketed recently.
Resale is a multi-billion dollar a year industry because it attracts the consumers from all economic levels.
Why are buyers are excited about resale deals?
The answer is simple.
Everyone wants to save money on consumer goods and utilize it for vacations, child education, retirement funds, and various family activities.
Breaking into franchise management can traditionally serve as a safer starting point for those getting their start in ownership across a variety of industries.
Companies looking to expand the influence of their existing resale branding have substantially increased the availability of options for management newcomers in recent years.
What does it mean?
A minor nest egg can be invested with a greater range of strategies for those looking to make the most out of their existing experience in retail and business.
Unfortunately, the majority of small businesses generally won’t expect to yield profit margins in the first months (or even years) of operation.
If a budding retail entrepreneur doesn’t find this initial period of low profits viable or attractive, a partnership with an existing upscale resale franchise can often provide valuable options for getting the ball rolling.
Consistent Consumer Experience
Traditional resellers have often relied on lower than standard profit margins and nonprofit dichotomies focus on providing a service to the local community.
On the other hand, upscale resale stores concentrate on consumer experience by understanding the needs and desires of their buyers.
Modernized resellers provide no restraint shopping experience to the customers. It allows for more competitive price points while still retaining the attractive benefits of a resale outlet experience. Resale businesses with a focus on this above-par shopping experience include growing resellers such as NTY (New To You).
Why modern resellers overpower traditional counterparts?
It’s win-win for both the parties.
Consumers lock down lower prices while still enjoying the experience and atmosphere that come with new goods retailer.
The benefit doesn’t extend solely to customers.
The smooth shift towards an upscale customer experience means that owners and franchisees can expect to enjoy an operative experience and keep up with the steadily rising revenue of retail frontrunners as well.
Strong Support Systems
Breaking into uncharted territory doesn’t mean that resale franchises are going alone. In fact, a vast majority of resale stores rely on the framework of support networks that allow them to fall back on training opportunities, marketing materials, and more.
The main question arises:
Why are they helping each other?
A range of prospective overhead costs is saved which require a lion’s share of time and money.
As a result, this support mechanism allows room for innovation.
Lower Overall Risk When Taking the Leap
The idea of kicking off small businesses looks very attractive, but it often leads to lower than anticipated profits. The standard new retail venture without well-timed market research means failing within the first year or even less timeframe.
On the more optimistic flip side, from the very beginning, resale retailers break into the market with the convenient advantages.
For example, reliance on inventory that stems from donated clothing, furniture, or even the computer hardware take away the pain of investing in new stocks.
Without investing deeply in product purchases on the front end, the same investment can be allocated for primary concerns such as property and operation overheads.
On the verge of opening her third Clothes Mentor store in Spartanburg, South Carolina, on March 17, franchisee Sadie Cherney talks about spring fashions from Clothes Mentor that are available for hundreds of dollars less than original retail prices.
In addition, Cherney talks about the upcoming Girls Night Out event at her Greenville store, featuring hundreds of Lilly Pulitzer items for spring. Watch the video to learn more about these big events.
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.
Photo courtesy Mainline Media News: Clothes Mentor Ardmore Owner Sharon Nagy poses with a poster of an article featuring herself at 7-years-old selling Kool-Aid from a cart her father made. She hopes to raise money for medical research into the disease that took her father’s life.
Check out the Mainline Media News article about the soon-to-be-open Clothes Mentor store in Ardmore, Pennsylvania:
Clothing has the power of transformation. A new little black dress, shiny red heels or a tailored coat can make a woman feel like a million bucks. Yet, why spend most of a paycheck on expensive clothing? Clothes Mentor, a franchise of stores based in the U.S., buys and sells previously owned designer clothing at 70 percent off the original retail value.
“Clothes mentor is unlike consignment, we do pay cash, on the spot. It’s a resale shop like you’ve never seen before. It’s not a thrift store, it’s not a step up from that, it’s really a concept where the modern, fashion-conscious woman can come in and be outfitted in something that’s new, fresh and exciting,” Sharon Nagy, owner of Clothes Mentor Ardmore, said.
The store, at 50 Greenfield Ave., Suite 56C, is set for grand opening on Thursday, Feb. 4 from 10 a.m. to 8 p.m. During the grand opening event, the first 25 customers in line will receive mystery gift cards, ranging in value from $10-$25 dollars.
Photo courtesy Mainline Media News: A glimpse into the Clothes Mentor store at 50 Greenfield Ave., opening Feb. 4.
Stepping into the store is equivalent to opening up a fashionista’s dream closet, full of rows of color-coordinated clothing, designer handbags, heeled boots, vibrant scarfs, and sparkling jewelry. The pieces range from items from well-known department stores to high-end designers.
“When you come in and you find a Calvin Klein dress that sold for a hundred dollars and it’s thirty in our store, they feel really pretty in it and they are equipped for whatever is out there, whether it is an interview, meeting friends or going out for dinner with their husband,” Nagy said.
The store has treasures for everyone at every budget.
Nagy explains, “We have costume jewelry, we even have some Tiffany pieces and David Yurman. We have in the store everything from Old Navy, Target, Kohl’s, Penny’s all the way up to Dior, Gucci and Christian Louboutin.”
The inventory is created by the community. Anyone can stop by and bring in new or gently used woman’s clothing, shoes, accessories and handbags. Clothing must be laundered and brought in without hangers. People can take advantage of curbside service where they drop off their items and call the curbside number so that they do not have to carry items from their cars.
“We do an inspection, and then we put it into our very sophisticated matrix system that we have that is supported by our franchisor and it tells us the price,” Nagy said.
Clothing that meets requirements will be placed in the store and the previous owners will be paid a portion for the clothing, about 30 percent of the resale price.
However, Nagy explained that for handbags that are mechanized for $50 or more as well as garments mechanized at $200 or more, previous owners will receive half of the resale price. They may also choose to receive store credit which adds an additional 35 percent of the sale to their credit.
Clothes Mentor has items for sizes 0-26 and is looking for more items, especially plus and active wear. “We are setting the store for spring so I’m looking for more summer items that have been in the stores the last few years,” Nagy said.
Opening the store is a lifelong dream that has been in the works since Nagy was a little girl, living in North Carolina. Nagy worked as a nurse up until five years ago. She also has a passion for theater and has performed in 15 shows in both the local community and city since moving to the area over a decade ago.
Nagy, joking about how she was able to explore the glitzy world of theatre before embarking on her business, said, “So then I got that out of my system and now I was like, “OK, now what do I want to do when I grow up? I think I’ll have a store.’”
Nagy was inspired by the mission and concept of the Clothes Mentor franchise.
“When I discovered this concept, where they pay cash and it was for women, and it’s supported by a franchise, it’s not something that I had to do totally on my own. It’s nationally known but locally owned and operated…It’s a concept where we get the support of marketing, advertising and training from the franchise. They helped me get this going but it has been a dream of mine forever.”
Photo courtesy Mainline Media News: Christian LouBoutin heels with the trademark red-lacquered soles and Prada boots
Helping others score amazing deals and find beautiful items that can have a second life is also a thrill for Nagy. “I always had resale in my blood, growing up finding that treasure and loved the concept of consignment shops and resale shops,” she said.
Nagy was an entrepreneur from a young age. At 7 years old, her father built her a Kool-Aid stand and she sold the fruity refreshment for a penny. A local reporter took a picture of her, proudly sitting at the stand, which she found in the archives and created a poster of the article.
“I played store a lot as a little girl, I used to put price tags on everything in the house and make my parents shop,” Nagy said.
Her father’s Kool-Aid stand inspired her to open her own business. She hopes to give back to her father and plans to use some proceeds from the store to fund Penn Medical Center’s research.
“I’m going to implement a one cent [buy one, get one for a cent] sale to raise money for a particular disease that my father had. He built this Kool-Aid stand for me, he was terminally ill. I’m going to use this to raise money to study the very rare diseases that he had.”
In this new business venture, Nagy combines her compassion for her family and community.
“It’s all about helping each other, I guess that’s the nurse in me, too,” Nagy said. “I still have that desire to help people feel better about themselves, and that’s what this is all about.”
During the year, Nagy plans to have several exciting events including a “Girls Night Out” partnering with local vendors as well as events for teachers and private parties.
Clothes Mentor Ardmore will also be developing a Personal Shopper program down the line. Eventually, customers will be able to fill out a form online and “the personal shopper [selects] items for them based on their style, their color their preferences, sizes, their lifestyle, what they have interest in.” The program will be free of charge.
Nagy is also looking for talented people who are welcome to apply online to be part of her team in the store. Her vision for the store is a place where the customers and store team thrive together and make the Ardmore location a staple in the community.
“I want it to be a place where people can come and hang out. Every day it’s a new store because things are flying in and flying out. People are excited to bring new things and stop by and see what’s the latest and greatest. But just to be able to say, “Hey how’s it going?” and see your team members making friends with the community and just be a warm atmosphere.”
Nagy is thankful to everyone in the community who has contributed to making her dream a reality.
“The community feels a little ownership of this, I love that… They’re so supportive. We have such an eclectic demographic area around here, it’s great. We’ve got all kinds of folks. Just to see what they were going to help me create in the store, and seeing the team, the excitement, it’s a contagious excitement,” Nagy said.
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.
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.
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.
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.
Sean Marrs
IT/Tech Administrator
IT/Tech Administrator
Ashlyn Aarness
Social Media Specialist
Social Media Specialist
Marissa Stacy
Jr. Graphic Designer
Jr. Graphic Designer
Gina Geary
Franchise Business Consultant
Franchise Business Consultant
Alice Heidenreich
Franchise Business Consultant
Franchise Business Consultant
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.
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.
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.