Children's Orchard franchise
2025 filing · April 17, 2025Fewer locationsShares sales figures
Children's Orchard at a glance
A resale store buying and selling gently used children's clothing, equipment, accessories and toys. At the end of 2024 there were 15 Children's Orchard locations in the US, all franchised.
The business
- Franchisor
- Children's Orchard, LLC
- The company that sells the franchises
- Franchisor based in
- Plymouth, Minnesota
- Typical size
- 3,000–4,000 sq ft
What you pay
- Cost to open
- $207K–$321K
- Fee, build-out and opening working capital
- Franchise fee
- $25,000
- Paid once, when you sign
- Royalty
- 4%
- 4% of net sales, paid weekly
- Brand fund
- Yes
- $2,000 a year; it can rise to $3,000
- Renewal fee
- $10,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2024
- 15
- Franchised and company-owned
- Franchised
- 15
- Company-owned
- 0
- Change in 3 years
- −8
- Franchised locations, 2022–2024
- States
- 8
- Most in California, Massachusetts and Michigan
Support and records
- Initial training
- 2 programs
- Training session 1: 18 hours in class; Training session 2: 31 hours in class and 18 on the job
- Lawsuits disclosed
- Yes
- Bankruptcy disclosed
- None
- Latest filing
- Apr 17, 2025
- 2025 filing
From Children's Orchard, LLC’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Children's Orchard among all franchises with the same figure.
| Figure | Children's Orchard | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $263,600 | Costs less than 61% of franchises |
| Franchise feePaid once, when you sign | $25,000 | Lower than 82% of franchises |
| RoyaltyShare of sales paid to the franchisor | 4% | Lower than 93% of brands with a set rate |
| US locationsFranchised and company-owned | 15 | Fewer than 55% of franchises |
| Sales per locationYearly, as the brand reports it | $398,868 | Lower than 81% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 1.5× | Lower than 54% of brands that share sales figures |
How much a Children's Orchard franchise costs
Opening one Children's Orchard costs an estimated $206,700 to $320,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are fixtures and supplies see note ($40,000 to $55,000) and leasehold improvements see note ($21,000 to $50,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee See Note | $20,000 | $25,000 | |
| Leasehold Improvements See Note | $21,000 | $50,000 | |
| Signs See Note | $5,000 | $9,000 | |
| Fixtures and Supplies See Note | $40,000 | $55,000 | |
| POS Software and POS System See Note | $5,700 | $8,000 | |
| Inventory See Note | $30,000 | $45,000 | |
| Deposits, Business Licenses and Permits See Note | $7,000 | $15,000 | |
| Legal and Accounting | $0 | $4,000 | |
| Security See Note | $2,500 | $4,500 | |
| Travel Expenses to Attend Training See Note | $4,500 | $9,000 | |
| Pre-Opening Labor Expense | $10,000 | $15,000 | |
| Grand Opening Advertising | $12,000 | $16,000 | |
| Rent – 3 Months | $20,000 | $25,000 | |
| Miscellaneous Pre-opening Expenses See Note | $14,000 | $20,000 | |
| Additional Funds - 3 Months See Note | $15,000 | $20,000 | |
| Total | $206,700 | $320,500 |
Source: Children's Orchard, LLC, 2025 filing, page 15
Children's Orchard franchise fee
The franchise fee is $25,000. You pay it when you sign the franchise agreement.
Source: Children's Orchard, LLC, 2025 filing, page 11
Royalty and ongoing fees
| Royalty | 4% of net sales, paid weekly. |
|---|---|
| Brand or marketing fund | $2,000 a year; it can rise to $3,000. |
| Technology Access Fee | Currently $500 per year |
| Renewal Fee | $10,000 |
| Additional Training Fee | Currently up to $200 per person per day |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Children's Orchard, LLC, 2025 filing, pages 11 and 12
Other fees as filed, from pages 12–13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Children's Orchard publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average net sales
- $398,868
- Median net sales
- $351,303
Yearly figures for 2024, covering stores open all of 2024 (15 locations). The average is about 1.5 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: Children's Orchard, LLC, 2025 filing, page 35
SBA loans to Children's Orchard franchisees
Lenders approved 46 SBA 7(a) loans for Children's Orchard franchisees from 1992 to 2018, $3.41M in all. Of the 45 that have ended, 38 were paid in full and 7 were charged off (15.6%). The other one hasn’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | Children's Orchard | Typical resale brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −17% / −35% | −1.4% / −3.4% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 17% / 35% | 6.8% / 26% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical resale brand is the median of the 5 brands in resale franchises with three years of counts.
How Children's Orchard compares
Of the 16 resale franchises on this site, Children's Orchard is the 7th cheapest to open and the 14th largest by number of locations.
| Figure | Children's Orchard | Typical resale brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $207K | $300K | $222K |
| Cost to open, high end | $321K | $436K | $477K |
| Franchise fee | $25K | $25K | $40K |
| Royalty | 4% | 5% | 6% |
| Sales per location | $399K | $889K | $794K |
| US locations | 15 | 115 | 21 |
| Shares earnings figures | Yes | 15 of 16 | 2,147 of 3,352 |
Typical is the median across the 16 brands in resale franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 23 (0) | 0 | – | – |
| 2022 | 20 (−3) | 0 | 0 | −3 |
| 2023 | 18 (−2) | 0 | 0 | −2 |
| 2024 | 15 (−3) | 0 | 0 | −3 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Over 4 years, from the start of 2021 to the end of 2024, franchised locations went from 23 to 15 (−8, −35%). The earlier years come from the brand's 2024 filing.
Source: Children's Orchard, LLC, 2025 filing, page 36
2021: Children's Orchard, LLC, 2024 filing, page 37
Where Children's Orchard locations are
At the end of 2024, Children's Orchard had franchised locations in 8 states. The most are in California, Massachusetts and Michigan.
- California4
- Massachusetts4
- Michigan2
- Arkansas1
- Nevada1
- New Hampshire1
| State | Franchised |
|---|---|
| California | 4 |
| Massachusetts | 4 |
| Michigan | 2 |
| Arkansas | 1 |
| Nevada | 1 |
| New Hampshire | 1 |
| Tennessee | 1 |
| Wisconsin | 1 |
Source: Children's Orchard, LLC, 2025 filing, page 37
Who owns Children's Orchard?
Children's Orchard franchises are sold by Children's Orchard, LLC.
From Children's Orchard, LLC’s 2025 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 10–11. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Children's Orchard, LLC, 2025 filing, litigation on pages 10–11, bankruptcy on page 11
Children's Orchard filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from Children's Orchard, LLC’s 2025 filing, issued April 17, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | April 17, 2025 | Minnesota | Costs, fees and locations, 2022–2024 |
| 2024 filing | – | Minnesota | Locations, 2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
Other resale franchises
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Children's Orchard is also on these lists: retail franchises.