MCA Business Brokers

Listing Information

Gently Used Children's Clothing - Retail Franchise
Listing ID: 1244	Location: Paxton Square Shopping Center, Dauphin County
Brief: NEW LISTING 6-5-10: ONCE UPON A CHILD. ESTABLISHED LOCALLY IN 1996. RARE OPPORTUNITY TO PURCHASE THIS PROFITABLE BUSINESS IN ANY ECONOMY. PRICED 50% BELOW THE COST OF OPENING A NEW LOCATION. MOTIVATED SELLER IS READY TO MOVE ON! The children’s apparel industry is large, consisting of $20.5 billion dollars in the United States alone. This attributes to the success of retailers selling high priced children’s apparel. However, Once Upon A Child (OUAC) the nations leading children’s resale clothing retailer enjoys many benefits by providing an alternative market giving customers the advantage of lower retail prices.

Listed Price:

$169,500

Total Sales:

$360,000.00

Seller's Discretionary Earnings:

$70,000.00

Fixtures Furniture, & Equipment:

$140,000.00 (Included in Listing Price)

Real Estate:

Inventory:

$60,000.00 (Included in Listing Price)

Financing / Terms:

The Seller is not offering to finance the purchase price. Commercial financing is available with a local bank lender under the SBA small business loan program. MCA will assist a buyer with loan proposal development to secure financing at no fee to the buyer.

Business Information

Year Established:

1996

Number of Employees:

1 Full Time / 7 Part Time

Days and Hours of Operation:

Monday to Friday: 9:00am to 8:00pm Saturday: 9:00am to 6:00pm Sunday: 11:00am to 4:00pm

Relocatable:

Franchise Information:

Once Upon A Child is a franchise. The purchase price includes the franchise transfer fee of $5,000. The franchise transfer fee includes new buyer training at OUAC headquarters in Minneapolis, MN (excluding transportation and lodging).The seller will provide transitional training and a non-compete agreement to the purchaser. Initial investment for a new start up franchise would exceed $200,000 based on Information contained in the Uniform Franchise Offering Circular (UFOC).

Facilities / Location:

Once Upon a Child occupies 3,100 square feet of newly remodeled space. The remodel was completed in January of 2010 and included a NEW FIVE YEAR LEASE with two (2), five (5) year renewal options. The monthly lease rate is $3,583.72 per month including CAM charges. The remodel included new fixtures, drywall, paint and a Point of Sale Register and Inventory Management system (POS) at a cost of $10,000. The store is located in the Paxton Square Shopping Center on Rt. 22 (Allentown Blvd) in Lower Paxton Township between Angelo’s Soccer Corner and Sportsmen’s Liquidators. The plaza includes tenants such as Karns Supermarket, CVS Drug Store, UPS Store, Planet Fitness, Liberty Travel and coming soon…Dunkin Donuts.

Lease Information

Lease Expiration Date:

1/1/2015

Option:

two, 5-year renewal options

Monthly Rent:

$3,500.00

Additional Information

Reason for Selling:

The owner, after ten years of ownership has done exceptionally well with this business and is ready to pursue new business opportunities.

Business Description:

The children’s apparel industry is large, consisting of $20.5 billion dollars in the United States alone. This attributes to the success of retailers selling high priced children’s apparel. However, Once Upon A Child (OUAC) the nations leading children’s resale clothing retailer enjoys many benefits by providing an alternative market giving customers the advantage of lower retail prices. Once Upon A Child carries children’s clothing sizes ranging from infant to a size 16. During this economic recession, this business remains steady in its growth. The location has been in business for over thirteen years. Customers enjoy the benefits of not paying the full original price for new apparel in addition to other children items such as furniture, toys and various accessories. Once Upon A Child is part of a national corporation, Winmark Corporation (www.winmarkcorporation.com) who assists its franchises in many ways. The Once Upon A Child franchises remain strong all over the nation with Winmark’s easy to use point of sale system and local advertising benefits.

Potential for Growth:

This is a well-established business with a very loyal customer following. While top line sales have declined during the economic recession, profit margins have increased because the store owner has been able to purchase more gently used inventory at a lower cost. This business has a bright future in this new economy as shoppers are now more cost conscious than ever and recycling clothing is a great option for stretching purchasing dollars. The Franchise Company is very proactive and will provide a new owner with considerable ongoing support and suggestions.