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Rates
Children's Orchard

Children's Orchard

The total investment to open a Children's Orchard franchise ranges from $206,700 to $320,500. The initial franchise fee is $25,000. Ongoing royalties are 4% plus a 5% advertising fee.

What is the Children's Orchard franchise?

Childrens Orchard operates in the children’s and infants’ clothing retail segment, with a specific focus on sustainability, value, and community engagement. The Childrens Orchard franchise serves families seeking quality clothing, toys, and accessories at accessible prices. Because children quickly outgrow their clothing, the model benefits from a recurring supply of gently used goods. Reselling these items can reduce costs for consumers while extending the useful life of clothing and supporting environmental responsibility. The Childrens Orchard franchise network currently includes 35 units, reflecting measured expansion across different communities. Its approach emphasizes localized service and curated inventory rather than a mass market format. The brand has a Loan Activity Score of 30, a benchmark that offers prospective investors an independent view of franchise health, satisfaction, operational support, and long term viability. Childrens Orchard gives families a consistent place to buy and sell children’s items, supporting a customer base that values both economy and quality.

The children’s and infants’ clothing industry includes both new merchandise and resale, with demand supported by birth rates and children’s rapid growth. The global children’s wear market was valued at approximately USD 200 billion in 2023 and is projected to grow at a compound annual growth rate of around 5 to 6% through 2030. The resale segment, including children’s apparel, is growing at a faster pace as consumers place greater value on affordability, sustainability, and distinctive finds. The resale clothing market, including children’s wear, could grow at a compound annual growth rate exceeding 15% over the next five years and reach a valuation of over USD 300 billion by 2032. Younger consumers are contributing to this trend through stronger environmental awareness and careful household budgeting. Local resale stores with selected merchandise give shoppers an alternative to fast fashion and higher priced new retail. Parents generally need to keep buying clothing and other products as their children grow, which supports demand through broader economic changes. Social media trends and online communities that share parenting advice and deals also increase interest in resale shopping.

Starting a Childrens Orchard franchise requires planning for the costs of opening the store, preparing for operations, and maintaining working capital. The investment generally includes an initial franchise fee that gives the franchisee rights to use the brand’s trademarks, systems, and proprietary knowledge for a specified term. Other startup costs can include leasehold improvements, construction, interior design, shelving, display units, and point of sale systems. These improvements convert a raw retail space into a functional store and support inventory presentation and customer shopping. Initial inventory is another major expense, covering gently used children’s clothing, accessories, toys, and equipment. Business licenses, permits, utility deposits, and initial marketing also add to startup requirements. Total investment for retail franchises in this category can vary widely with location, store size, and market conditions. A complete financial review should account for each of these components when evaluating a Childrens Orchard franchise.

The Childrens Orchard operating model is intended to give franchisees the knowledge and tools needed to run a children’s resale clothing store. Typical sector support includes initial classroom training covering the brand’s business philosophy, inventory management, customer service standards, and marketing strategies. Hands on training at an operating location may help new franchisees learn daily routines, buying and selling practices, and proprietary software for pricing and tracking merchandise. Ongoing support commonly includes site selection assistance based on foot traffic and local demographics. Lease negotiation guidance may draw on the franchisor’s experience in securing suitable terms. Marketing support can include local campaign templates, access to national advertising funds, and digital marketing guidance aimed at attracting both sellers and buyers. Operational manuals, periodic field visits from corporate representatives, and regular communication through franchisee conventions or online forums can help share operating practices. Support may also address supply chain needs, including new product lines and specific inventory categories, helping the Childrens Orchard franchise maintain a consistent retail offering.

Revenue in this model primarily comes from selling gently used clothing, toys, and equipment, with possible additional sales from new accessories or related products. Operating expenses generally include rent, utilities, labor, marketing, and inventory acquisition. Strong inventory management can reduce holding costs and keep the store’s selection fresh.

The Childrens Orchard franchise currently has 35 units, providing a foundation from which future expansion can be measured. Its competitive position comes from the brand recognition and operating framework supplied by the franchisor. Trust and quality assurance matter in second hand retail, and a recognized brand can distinguish itself from independent consignment shops and online marketplaces. Systems for inventory acquisition, pricing, and store presentation can give franchisees an established way to manage the business. Franchisees may also benefit from shared marketing efforts and continuing operational support. The brand’s emphasis on sustainability and value aligns with consumers who are environmentally conscious and budget aware. A structured buying and selling process can support a consistent quality standard and customer experience across all 35 units. That consistency encourages parents to sell items their children have outgrown and purchase additional items, supporting a circular economy within each Childrens Orchard location.

A typical Childrens Orchard franchisee brings an entrepreneurial outlook, strong community involvement, and an interest in serving families. Candidates in children’s resale retail often have retail management experience, including knowledge of inventory control, merchandising, and customer service. Interpersonal skills are also important because the business involves direct contact with both sellers and buyers. Franchisees need to build relationships, understand local market conditions, and create a welcoming setting that encourages repeat visits. Commitment to sustainability and providing value to families fits the brand’s stated focus. A suitable territory generally has strong family demographics, accessible retail space, and customers such as parents and grandparents who seek quality and affordability. The franchisor often provides site selection guidance using market research and demographic analysis to identify territories with potential for a new Childrens Orchard franchise location.

A Childrens Orchard franchise offers a way to participate in the children’s and infants’ clothing resale market, which serves an ongoing need as children grow and outgrow their clothing. The network has 35 units and a Loan Activity Score of 30, reflecting an established operating presence and a measured level of franchise health. Consumer interest in value, sustainability, and quality second hand goods supports the broader resale category. A structured franchise model can provide brand recognition, operating procedures, and continuing support, while the local store gives families an accessible way to buy and sell children’s items. The concept may appeal to entrepreneurs who want to serve local families while operating a retail business based on reuse, affordability, and community connection.

Loan Activity Score

30/100

SBA Default Rate

15.2%

Active Lenders

30

According to its Franchise Disclosure Document or public business records, Children's Orchard has 15 locations, all owned by franchisees. Public SBA loan records show 30 lenders made 46 loans to franchisees of Children's Orchard. PeerSense calculates Children's Orchard's score as 30 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2026 Franchise Disclosure Document.

Franchising since 1980 · 15 locations

Investment

$206,700 to $320,500

Franchise Fee

$25,000

Total Units

15

15 franchised

Loan Activity Score
High
30
SBA Lending
4
Lender Quality
7
Transparency
7
Reach
9
Momentum
3

Proprietary PeerSense metric

Limited
Capital Sources
30SBA lenders

Distinct lenders in public SBA records for Children's Orchard

46

Total SBA loans

$71K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Children's Orchard

Loan Activity Score Breakdown

Established (25 to 99 loans)

High Confidence
30out of 100
Limited
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety4/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence7/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency7/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint9/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

15.2%

vs 3.2% peer avg

SBA Loans

46

Total Volume

$3.3M

Active Lenders

30

4 selective

States

20

vs. SBA Sector Average

-12%higher default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Item 19 financial data disclosed

Data Insights

Key performance metrics for Children's Orchard based on SBA lending data

SBA Default Rate

15.2%

12.0% above peer avg

SBA Loan Volume

46 loans

Across 30 lenders

Lender Diversity

30 lenders

Avg 1.5 loans per lender

Investment Tier

Mid range investment

$206,700 to $320,500 total

Children's Orchard: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2002

6 approvals. The best year on record for Children's Orchard.

Top SBA State

Missouri

10 SBA financed Children's Orchard locations, the densest operator footprint.

Average Loan Size

$74K

Median $150K. Use as a sizing anchor when modeling your own Children's Orchard unit.

Lender Concentration

27.6%

Moderately Spread

Share of Children's Orchard approvals captured by the top 3 SBA lenders.

Children's Orchard's SBA lending pipeline peaked in 2002 (6 approvals). Operator density is highest in Missouri with 10 SBA financed locations. Average funded ticket sits at $74K, with the median at $150K. Lender mix is moderately spread: the top three SBA lenders account for 27.6% of approvals. Meaningful choice exists, but specific lenders carry the brand.

Payment Estimator

Loan Amount$165K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$2,140

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Children's Orchard, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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Children's Orchard

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman