Children’s OrchardFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Children’s Orchard franchise requires a total initial investment of $227K – $336K, including a $25K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $419K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $227K – $336K
- 44th pct Education
- Avg gross sales
- $419K
- 22nd pct Education
- Royalty
- 4.0%
- 2nd pct Education
- Units
- 13
- 29th pct Education
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 13% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $227K – $336K including a $25K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $419K/year (median $367K).
- Verdict F (Bottom Quintile) with a risk score of 89/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Children’s Orchard, LLC
- Parent company
- NTY Franchise Company, LLC
- Ultimate parent
- None disclosed
- Predecessor
- and Affiliates
- Prior franchisor entity
- CEO title
- President
- Ronald G. Olson
- CEO experience
- 35 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 13895 Industrial Park Blvd, Ste 100, Plymouth, MN 55441
- Auditor
- LB Carlson, LLP
- Audited financials
- Franchisor revenue
- $3.8M
- vs $3.8M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- NTY Clothing Exchange
- Clothes Mentor
- Device Pitstop
- BST Software Company
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Children's Orchard franchisees operate retail stores specializing in consignment and resale of children's clothing, furniture, and accessories. Day-to-day operations include managing inventory intake from consignors, pricing merchandise, staffing the retail location, and handling customer transactions. Franchisees are responsible for marketing, local community building, and managing the consignor payment process.
- CEO
- Ronald G. Olson
- Headquarters
- MN
- Founded
- 2014
- FDD year
- 2026
- States available
- 8
FDD Item 7 · 2026 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $25K | |
| Leasehold Improvements | $21K | $50K | |
| Signs | $5K | $9K | |
| Fixtures and Supplies | $55K | $65K | |
| POS Software and POS System | $6K | $8K | |
| Inventory | $35K | $50K | |
| Deposits, Business Licenses and Permits | $7K | $15K | |
| Legal and Accounting | $0 | $4K | |
| Security | $3K | $5K | |
| Travel Expenses to Attend Training | $5K | $9K | |
| Pre-Opening Labor Expense | $10K | $15K | |
| Grand Opening Advertising | $12K | $16K | |
| Rent - 3 Months | $20K | $25K | |
| Miscellaneous Pre-opening Expenses | $14K | $20K | |
| Additional Funds - 3 Months | $15K | $20K | |
| Total initial investment | $227K | $336K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$67K
16.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $227K – $336K
- Near category avg vs category
- Liquid capital req'd
- $15K – $20K
- Better than avg vs category
- Franchise fee
- $20K – $25K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- $2,000 per year
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $8K |
| Renewal fee | $10K |
| Inventory (initial) | $30K – $45K |
| Total fee load | 4.0% of rev |
A 4.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $419K
- Per unit, per year
- Median gross sales
- $367K
- Item 19 type
- net_sales
- Sample size
- 13 units
- vs category median 14
- Range (low → high)
- $257K→$753K
- Cohort dispersion (min → max)
- Quartile band
- $274K→$632K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
vs Education averages
How Children’s Orchard Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 13
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 15.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -13.3%
- Net unit change last year
- 3-yr CAGR
- -27.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 86.7%
- Units that stayed open
- Ceased ops
- 15.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $299K
- Median loan
- $150K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Children’s Orchard's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Children's Orchard presents HIGH RISK due to a contracting unit base, substantial litigation history involving breach of contract and financial misrepresentation, zero net income transparency, and an unsustainably small franchise system.
Litigation (Item 3)
Two arbitration cases filed by franchisees against NTY Franchise Company, LLC and affiliated entities. CSW Strategic Solutions case (2020) settled for $400,000. Transcendent Business Holdings case (2019) details incomplete in provided text.
Largest disclosed settlement: $400,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · LB Carlson, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 89 / 100 rating
- 01MINORDeclining unit count: 13 units with -13.3% YoY contraction indicates system is shrinking, not growing
- 02HIGHTwo litigation settlements totaling $1.05M within recent history suggest systemic issues with contract enforcement and financial transparency
- 03MINORNo average net income disclosure despite $418,805 average revenue—inability or unwillingness to provide profitability data is a major transparency red flag
- 04MINORHigh initial investment ($226,700-$335,500) with only 4% royalty structure may indicate franchisor relies on upfront fees rather than franchisee success
- 05MED13-unit system is extremely small and vulnerable; franchisees have minimal peer support network and franchisor has limited resources
- 06MINOR10-year term locks franchisees into relationship with shrinking brand with no demonstrated path to profitability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Governing law | Minnesota |
| Litigation count | 2 |
View Item 3 litigation summary
Two arbitration cases filed by franchisees against NTY Franchise Company, LLC and affiliated entities. CSW Strategic Solutions case (2020) settled for $400,000. Transcendent Business Holdings case (2019) details incomplete in provided text.
Items 10, 11
Training & Operations
- Classroom training
- 49 hrs
- On-the-job training
- 18 hrs
- Field support
- 28 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- POS system
- Resale World
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Resale World
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Children’s Orchard · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Children’s Orchard franchise?
The total investment to open a Children’s Orchard franchise ranges from $227K – $336K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Children’s Orchard franchise owners earn?
According to Item 19 of the Children’s Orchard FDD, the average gross sales per unit is $419K. The median is $367K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Children’s Orchard's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Children’s Orchard (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Children’s Orchard franchise locations are there?
As of their most recent FDD filing, Children’s Orchard has 13 total units in the United States, including 13 franchised units and 0 company-owned units.
Is Children’s Orchard a good franchise to buy?
FranchiseVerdict rates Children’s Orchard as a F-grade franchise with a risk score of 89 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.