105 Responses to “CHILDREN’S ORCHARD: Overview & Links”

1. visitor on September 15th, 2009 7:52 pm

   I am a franchisee that wishes to close after just 3 years of operation. The day I notified them of my closure they sent an email out to my MOMs club listing offering to sale the store. The email contained a fake story about why the store was being sold (my wanting to spend more time with my kids) and was signed with my name. They sent it out again today…. again with the impression that I was the one sending it out!!! I have forwarded both to my attorney!!! The day this is all over will be the happiest day of my life!!!!

2. Visitor2 on September 16th, 2009 12:27 pm

   I am not surprised by their actions.

   If their business model wasn’t a set-up for failure, maybe you wouldn’t be closing after 3 years. I am sorry for your trouble, for you and your family.

   All they are looking for is a bunch of cash cows they can bully.

   There are good franchises, this is NOT one of them.

   Good Luck in your future.

3. Carol Cross on September 16th, 2009 6:23 pm

   I’m sorry that you experienced a business failure or some incident that made it necessary for you to close down your store.

   Apparently, the franchisor wants to “churn” your store to another franchisee but it is surprising that they would advertise the store for sale, as if it were you, and I think it is smart that you have forwarded this to your attorney. Apparently, you will not have “lease” obligations after you close down ?? that could cost you additional money.

   I used to have my own comments (klind of my own blog) on this site but I guess they were removed in the recent “hacking” of the Franchise Pick Unhappy Frasnchise Site. .

   I think you were probably a victim of “The Great Franchising Robbery” and you can read about this on my new blog, which is http://thegreatfranchisingrobbery.blogspot.com/

   Good luck to you and spread the word about the “Great Beast of Franchising.”

4. guest on September 17th, 2009 1:20 pm

   Unfortunately you are not alone, several stores close after just a couple of years, one after only a year. This a faulty system, but a great concept. It is being run into the ground by the owners and good, smart, and responsible people’s lives are being completely ruined!!!

5. Guest on September 19th, 2009 9:45 am

   I wondered what had happened. I guess there are some franchisors who are computer savvy. I know that this one is. I am glad to see the chat up and running again, it has been a source of comfort to learn that I am not the only one to have (or had) huge problems with the staff and ownership of this franchisee. Every time I would write or call about my concerns, I would always be told that I was the only one in the system who had those concerns. I felt like a failure. And really do to some extent still. I know that many stores have closed and there might be more ahead, but I always look at the ones that seem to be going gangbusters and having great success and I wonder what I did wrong.

   Thanks for putting this back together.

6. Guest on September 20th, 2009 9:46 am

   Cathy Marks is the master of saying “Really, we have never heard that before” and “You are the only one with that problem”. Get on the phone with other franchisees and you will find that just about everyone is having the same PROBLEM(S). This is a franchise that will never work as long as the same people are there in Ann Arbor!

7. visitor on September 29th, 2009 8:08 am

   Does anyone who posts here have an opinion about how sincere this franchisor is in growing his system??

   When was the last year that a brand new location was sold?

   I am suspicious about the motives of this franchisor. At first I thought he was just into churning territories, but in order for that to happen, wouldn’t he have to sell new locations?

8. guest on October 1st, 2009 2:30 am

   I think the franchhisor is sincere about growing the system but I am not convinced the franchise has the right team and capabililty to grow the system. The franchise was bought with over 100 stores and today it is less than 60. This would give you one of two impressions. Either 40% of the owners were inept, or the franchisor didn’t understand the franchise he bought. The franchisors have to be in a panic. Over 50% of their store gross receipts are gone due to store closures. This means income is gone and not replaced and the value of their investment has been drastically dropped. So to drive their franchise fees, they have adjusted the CORP program and have been vigously pursuing late fees. Which they have never done before. The remaining franchisees have to be in a panic as they have seen the value of their investment slowly diminish with the possible exception of the top five stores.

   With the right leadership and team, this franchise can become a powerful franchise. It is set to (1)capitalize on the green concept as it recycles kids items and (2) capitalize on this tough recession as the cost of merchandise is 50% to 80% below retail value and they pay sellers a fair price to recycle items.

   One of the basic concepts taught in training is those owners who are working in their store and not on their store are setting themselves up for stagnant growth. Sitting in Ann Arbor to focus on a website, e-mail templates, a repetative advertising campaign, and tallying KIDS system information every week does not make for an active franchisor. It mirrors a store owner who is working in their store and not on their store.

   The website looks great and the M.O.M.S. club concept is very popular and drives traffic. The $35/$10 concept is a very expensive avenue to create traffic with the franchisee bearing all cost. We figured out the cost of one $10 cache card. The cost of the card itself, the cost to load the card, the cost to redeem the card, the cost of the merchandise bought with the card, the taxes due on the sale, the royalty and ad fee due on the sale. It could cost the franchisee a minimum of $7 in cash to redeem a cashless card. Under this concept, it could cost a miminum of $7 to bring in one customer. The franchisee can print a flyer with a $10 coupon for pennies, come out ahead in cash retention and still make the sale. Advertising is key for growth, but there has to be consideration for return on investment.

   Sending corporate for store visits is merely a checklist process. It does create similarities among stores and does help with branding. But whether the store has a round bar vs a straight bar has no bearing on the ability to sell a Childrens Place shirt for $3.99.

   Rather instead there should be a focus on how reduce cost of operations. For example, ideas to improve the inventory process. We analyzed the franchisor concept of “Get it in, get it hung, get it sold”. Great concept on paper. We counted how many times a piece of merchandise is touched before it finally hits the floor. Once to examine, twice to ring, third to sort in the bin, fourth to take out of the bin to tag and handwrite sizes, fifth to hang, sixth to steam, 7th to size on the floor to sell. If the merchandise needs to go to storage, then there is a whole other process involved. The color tag system is good, but confusing especially if there is a special event. Then there is the whole mark down/filler bag processing. We realized that the cost of labor it takes to process our merchandise and to store our merchandise is a multiple of the cost we have in selling the merchandise. There has to be a better way to make this more efficient and less cost prohibitive.

   I have a feeling that those stores that are successful have probably embraced the Childrens Orchard concept and then improved upon it to fit their unique store in their respective area. They are catering to their local market and effectively managing their costs. And as those stores are the ones that are carrying the franchise, they probably aren’t getting much grief from corporate when the store does stray to use a round bar instead of the franchise approved straight bar.

   Sorry for the length of discussion. If you made it to the end of this, then I am complimented you thought my comments worth the read.

9. Visitor2 on October 2nd, 2009 8:28 am

   While I certainly appreciate your in-depth perspective, it didn’t quite address question the poster on Sept. 29th asked.

   Your answer was from the inside, operational side of this business.

   I think the question that was asked, “why no new blood, where are the new stores?” It is not the economy, because the competition has experienced growth, this system has not.

   This owner has been told for the past 3 years that his contract is a huge problem. Although existing stores have been re-sold, the new owners were drooling at the going price and disregarded the contract because of the fire sale.

   I disagree strongly when you say that the “successful” stores “have probably embraced the Childrens Orchard concept and then improved upon it to fit their unique store in their respective area. They are catering to their local market and effectively managing their costs.”

   Here is why I disagree. The top store in California, and in fact for many years the top store in the system, was a mess. It didn’t look anything like any other store in the system. In fact, it could easily be mistaken for a thrift store at first glance. What that store had was a unique territory. The owners/operators of the top stores all share the same quality, their unique territory. Their ownership styles vary, and following the business system is all over the map. They key to their success is for one reason and one reason only, their territory. One store actually has a territory so dense, that is has 17 grade schools. How can a store with sales in the bottom, that only has 8 grade schools in it’s territory compare???

   The stores with less dense territory’s used to be able to make it on some level before this new owner took charge. It was his wacky and costly promotions that helped sink the marginal stores.

   You are right on when you say the franchisor did not understand the business he bought. But he is in his 6th year of ownership, and he has made it very clear he is not interested in “getting it.” So does he really want to grow the system? If so.

   “Where are the new stores?”

10. Visitor on October 2nd, 2009 9:19 am

    Taylor Bond likes to put his picture on the internet and and say he is going to grow to 300 stores. That is what he does. He wants to look successful even if he is not. And everyone knows he is not going to do it but there goes the ad fund boosting his ego. It is safe to say there will be no new “successful” stores. Anyone stupid enough to buy into a system like this will not have the smarts to make it successful.

11. guest on October 2nd, 2009 10:26 am

    Great points to make. It is difficult to sell something when numbers are against your favor. If you google Taylor, his vision of growing over 300 from 100 stores is well documented. If you go to the C.O. website, and the store count is less than 60. This fact alone is extremely hard to overcome. And blogs such as this one doesn’t help either.

    People want to be a part of a success story. They aren’t interested if the owners have having to work 60 – 70 hours a week, with zero cash draw but the franchisor gets his cut regardless, and the voice of the unhappy franchisee can be heard from coast to coast. As an investor, I would walk away in today’s environment.

    One way to overcome these large obsticles is for the franchisor to retrench, think strategically, and start investing in the current stores. Challenge the territory lines and drive traffic that will benefit the bottom line as this is what feeds the flock. Come up with innovative ideas to reduce overhead costs, creating increased cash flow. Once owners start seeing increased cash flow and increased gross sales, you will start to create positive momentum. This will provide additional funding for the corporate group. Maybe enough to hire regional managers which will create unity in the local market and agressively pursue new investors vs. relying on internet only. Your internal franchisees are your best advertisement to grow the franchise.

    Keep them happy, and others wil come.

12. DM on October 5th, 2009 5:21 pm

    Cathy Marks is the master of saying “Really, we have never heard that before” and “You are the only one with that problem”. Get on the phone with other franchisees and you will find that just about everyone is having the same PROBLEM(S). This is a franchise that will never work as long as the same people are there in Ann Arbor!

13. K K on October 6th, 2009 7:09 pm

    I am very happy I found this site. I was deep into my due dillengence with this franchise when I found this site. I understand now why I felt I was getting very defensive answers to my questions or no anwers at all.

    THANK YOU for saving me and my family a lot of money.

14. Visitor2 on October 9th, 2009 9:20 am

    It would be interesting to know if you were looking at a resale or a new location.

    I know of a few locations that are up for sale, and if not sold, will close. Soon.

    This franchisor’s contract is criminal. Good people, running good operations, who can not and will not sign such a contract under renewal terms, are experiencing financial ruin.

    Just think about this for one moment. You make a substantial financial investment in this franchise. You work very very hard and reach a level of success and then in waltzes new ownership that destroys the good-will and good business sense in just a few years. Faced with signing a criminal franchise agreement renewal, you chose to go bust.

    This is happened and is happening. This is not myth, or bad franchisees or a stupid business system. Good franchisees can overcome a stupid business system. What they can’t over come is signing the criminal renewal or if they are neebies, overcoming the criminal financial clauses of the agreement they signed after much eye-rolling from corporate, that those clauses really don’t mean that much.

    Criminal.

15. zzguest on October 26th, 2009 1:03 am

    KK, we are SO very glad you found this website also, thank goodness you did and realized how very horrible it would be to end up in this mess of a franchise. Great concept, horrible franchise!

16. Grace on October 29th, 2009 9:25 am

    Looking for a franchise?? Then before you invest your life’s savings, break the bank, and mortgage your home……do your research. Read, call and search for all the information you can find.

    Once you fall in love with a concept, then blindness take over, and you hunker down thinking “I am different than they are” – “I can get along, I can live with the contract because I will succeed.”

    Better think again.

17. LR on November 3rd, 2009 9:01 am

    Well.. I closed.. I was the one that posted awhile ago about them sending out the email with my name on it offering the store for sale. I was using an attorney based in Washington, DC that has helped many of the CO owners close with little or no settlement. He knows the contract and understands how to deal with Taylor and Adam Bond. About 2 weeks ago he received a phone call from Adam Bond informing him that they would no longer deal with an attorney not licensed in the state my store was operating in!!!!!! So they are playing hardball… he has represented many other stores.. and WON.. so now they decide to try to make him go away.

    Chew on that for a little while and let me know how it makes you feel!!!!!!!!!

18. visitor on November 3rd, 2009 9:03 am

    Counted the stores on the website… down to 56!!!

19. guest on November 15th, 2009 12:13 pm

    only 56 left? is it the economy? how many stores need to be operating for the franchisor to break even? any chance he will be bought out?

20. Visitor2 on November 18th, 2009 2:20 pm

    The only way they could be “bought out” is if they had a fire sale and sold rock bottom.

    Ain’t gonna happen.

    This system is going backwards! Taylor Bond lost 20 years of development in 6 years. The last time the system was at 56 stores was just about 20 years ago! How sick is that?

    They are meeting their break even how? Could it be that they are running other businesses out of their corporate office?

21. guest on November 20th, 2009 9:37 am

    Back in March one story said there were 73 open. Now there are 56?

    17 stores closed in less than a year? Is that right? Or are some operating under different names?

    Is there a list of the stores that closed in 2009? Can people post the stores they know about here?

22. Visitor2 on November 24th, 2009 10:20 am

    Officially, at the end of 2008 there were 62 open and running.

    6 have closed since the end of 2008. There may be more closing in the next few months.

23. guest on November 24th, 2009 12:06 pm

    Which 6 stores closed in 2009? Does anyone know?

    A franchisee named Stephanie posted that she closed January 31, 2009 because of the CPSIA law “We owned a franchised resale store, Children’s Orchard… The law forced us to close, and though the franchisor is still in business, we could not be part of it. We are not getting any support from the franchisor…” http://overlawyered.com/2009/03/cpsia-we-are-sorry-to-report/

    Merchant Circle lists 12572 Westheimer Rd Houston, TX 77077 as closed
    “This great store closed down this weekend.9/20/09″ http://www.merchantcircle.com/business/Childrens.Orchard.281-558-2229/review/read?cid=798600

    Las Vegas – Summerlin closed at the beginning of the year after just a year in business

    LR announced in his/her Nov. 3 post that they closed their store.

24. guest on December 12th, 2009 2:11 pm

    Consumers have caught on that this franchise is a bad deal to invest in, otherwise brand new locations would have popped up. It’s the most restrictive contract out there and a person would have to be out of their minds to get hooked up with the group of white collar thugs that own and run this system. Run away as fast as you can!!

25. Visitor2 on December 14th, 2009 11:02 am

    Children’s Orchard franchise is a dead horse. The jockey’s used the whip and the horse rebelled. Rest in peace.

26. guest on December 17th, 2009 7:24 pm

    it isn’t quite dead yet, it seems the stores are starting to show some uptick in volume and sales

27. Visitor2 on December 18th, 2009 2:42 pm

    really? Children’s Orchard, the franchisor, not the stores is the one knocking on deaths door.

    Who in their right mind would sign that agreement?

28. Guest on December 21st, 2009 9:56 am

    Another one closed, this time in AZ. Anyone know what happened to this one?

29. Carol Cross on December 21st, 2009 4:42 pm

    “Who in their right mind would sign that agreement.” —

    Indeed! Those who are up for renewal underdstand the malice of the terms of the franchise agreement because they have lived through it but newbies don’t understand the terms and believe the franchise agreement is NOT negotiable and do sign these agreements in good faith believing that the franchisor is selling the franchise in good faith and cannot profit unless they profit. Big mistake that franchisees make and find out the hard way!

    The Children’s Orchard Cooperative has done a good job of communicating the performance problems of this franchise to fellow franchisees and, hopefully, to new prospects who will read the website. We can hope that this website will encourage other franchisee associations to sponsor their own websites on which they can discuss their unit performances and the franchise agreement with other franchisees and warn new prospects before they put their signature to that bottom line, The right of free speech for franchisees has not been removed under the terms of the adhesory franchise contract — in terms of franchisees talking about their own UNIT experience. This poses a threat to the franchisors whose attorneys are trying to find out how to shut down these kind of websites.

    Please read “Disadvantages of Buying a New Franchise for Prospective Franchisee” in a Google Search. Also, “Franchise Regulation Realities — Deception or Patriotism?” and “Buying a Franchise! The Great Franchise Hoax – A Business of Your Own” in a Google Search.

    http://thegreatfranchisingrobbery.blogspot.com/

30. Visitor2 on December 22nd, 2009 12:26 pm

    Thanks Carol! I believe that information is power and I appreciate the link you posted. Hoax indeed! Franchises are the new shell game.

31. visitor on December 22nd, 2009 7:14 pm

    has anyone done any sort of analysis on what the healthcare reform may mean to the current franchise owners?

32. Erin on December 22nd, 2009 11:58 pm

    I loved Children’s Orchard and the one on Oracle and Magee in Tucson, AZ closed because the owners retired to Colorado to spend more time with their grandchildren.

33. Visitor2 on December 23rd, 2009 10:26 am

    As I understand it, that location was financially successful. Lots of business owners retire and sell their successful operations.

    Why didn’t it get sold instead of closing?

34. guest on January 4th, 2010 9:37 am

    How many more will close? Predictions?

35. visitor on January 15th, 2010 7:36 am

    Florida gone and another in Nevada… down to 53.

36. Theresa on January 15th, 2010 1:36 pm

    Was thinking about inquiring on an opportunity to puchase an established C’sO Store but after reading all the post on this website I’m not so sure… It seems to be a really nice opportunity to have my own business as i always dreamed of but is it worth it? lol…

    Thanks for your post Carol, I will def read more into it before I get myself into something I’ll regret later!

    God Bless All…

37. Visitor2 on January 15th, 2010 5:43 pm

    Dear Theresa: Please understand that the experience and warnings have nothing to do with the opportunity but has everything to do with the franchisor, and his contract.

    Frankly speaking, it is not worth your time, money and heartache to be involved with this franchisor.

38. Theresa on January 15th, 2010 6:00 pm

    Yes, I do understand that we are talking about the franchisor- Do you or have you delt with this franchisor direct? Or are you commenting on hearsay?

39. guest on January 17th, 2010 4:30 pm

    Hi Teresa, we are one of the 53 stores remaining. If you are truly interested, I would recommend several steps: 1) Talk with the existing owner – ask for 3 years of financial records, don’t be afraid to ask the tough questions 2) Talk to other owners within your area 3) Compare the financial information to the franchise expectations to make sure they compare 4) Hire a lawyer to read, analyze, and consult on both the franchise agreement and the lease agreement before you sign on the dotted line. Once you are in, it is a 10 year committment regardless of the term of your lease so you may find yourself having to renegotiate a lease or find a new spot for the store 6) If you are acquiring an underperforming store, make sure you have another source of income as it may take a couple of years before you start seeing any positive cash flow 5) As in any entrepaunerial endeavor, you will be eating, breathing, living, sleeping your store. This is both a selling business and a buying business so you will be essentially running two businesses in one. Plan on working 7 days a week. As any small business owner will tell you, the upside to this is the more you invest of yourself, the higher your return. Owning your own business is not for the meek at heart, it takes a lot of hard work and dedication. With this being said, we love owning our store. We worked hard to turn around an under performing store. We take pride in the fact that we learn more year over year and this has helped to keep us growing.

40. ADMIN on January 17th, 2010 6:28 pm

    Theresa:
    “guest” provides good advice.
    In addition, talk to as many owners as you possibly can, even outside your area.
    Also, check out the C.O. franchisee association site to see the AAFD analysis of the Franchise Agreement and other issues posted there:
    http://www.orchardcooperative.org/

41. Visitor2 on January 18th, 2010 12:44 pm

    Theresa, my experience is not hearsay, but direct. My experience is with the previous ownership and the current ownership.

    The post above at 6:00 PM gives advice about steps you should take to learn for yourself if this is a good business deal or not and about working hard.

    That post stops short because it does not mention one word about the contract pitfalls.

    My warning is “don’t sign a contract with this franchisor.” Period.

    As far as having an attorney “fine tooth comb” the contract….I know for a fact that plenty of franchisees have done that and were failed by their attorney’s. Many have closed their store because of the contract.

    These franchisors are smart people. But when they started seeing that franchisees were not lambs and asked questions, they moved from being smart business people, to control freaks. They desired absolute control over everything they could think of and they have ruined this franchise because they abandoned good business practices and put all of their effort into writing a contract that is punitive and one-sided. (as most franchise contracts are).

    Don’t take it from me, take it from the history of how this system has plummeted and spiraled downward since 2004 when the current owners took over.

    At the end of the day, there is more information than ever about the dealings of this franchisor. Be thankful you have the information.

    Many good and sweet people with families have been financially ruined because they loved the concept and were blind to the hard hitting reality of the contract they signed.

    I don’t care how smart you are or how hard you work. This contract is criminal.

42. Theresa on January 18th, 2010 1:11 pm

    I’m thankful to have found this website. I’m the type of person who loves to do my research before doing anything. Thank you for the post on January 18th, 2010 12:44 pm – You were being very frank… I totally fall under the catagory of the description you posted “Many good and sweet people with families have been financially ruined because they loved the concept and were blind to the hard hitting reality of the contract they signed” ~ Blinded into thinking we are doing a little to help the Earth etc… Being GREEN! lol… but o’well I’ll look into opening my own little store without the “Franchise Drama” God Bless All!

43. Carol Cross on January 18th, 2010 1:46 pm

    The contracts seem “criminal” when franchisees are subject to some of the malicious terms but not defined as such by the courts who routinely uphold these take-it-or-leave-it unilateral contract terms, that favor the franchisors and the survival of the franchisors’ systems and their profits, as the legal means of implementing federal regulatory policy.

    Case law has been built since 1979, when the Franchise Rule was promulgated, to protect the franchisors, even as they encroach on and destroy their own franchisees, as necessary, under the terms of the malicious contracts.

    The routine franchise agreement(?), the contract of sale of the franchise rights, has been designed to be “invincible” and to protect franchisors from charges by franchisees that they were fraudulently induced to contract by misrepresentations and omissions in the sales process concerning the risk of their investment in the franchise.

    The franchisor may even point out some of the risks, etc..in the FDD and the contract, but it appears that they are permitted, under regulation, or believe they are permitted under regulation to withhold negative material facts concerning UNIT performance that if disclosed to the new buyers would kill the sale of the franchise.

    In my opinion, it is difficult to overcome the constructive fraud of an inadequate and deceptive government mandated disclosure circular, the FDD, and the adhesory and un-bargained take-it-or-leave-it franchise contract that are packaged together. Once a franchisee signs the agreement, all of a franchisee’s legal rights appear to have been surrendered to the “greater good” of those who have the influence to determine the “greater good.”

    For those of you interested in The Rule of Law and Franchise Contracts and the FTC Franchise Rule, please take a look at the Amicus Briefs of the International Franchise Association (the IFA) and the American Association of Franchisees and Dealers (AAFD) concerning the Peaberry Coffee Litigation in the Colorado Court of Appeals.

    A copy of the Appeal is available on Blue Mau Mau, as provided by Janet Sparks, and the IFA amicus brief can be found in a Google Search. I believe the AAFD Amicus brief in support of the franchisees is available upon request to the AAFD.

    Knowledge is power and the law belongs to the people.

    Read: Ezine Articles — “Franchise Regulation Realities — Deception or Patriotism” and “Disadvantage of Buying a New Franchise for prospective Franchisee” in a Google Search.

    http://thegreatfranchisingrobbery.blogspot.com/

44. Jane on January 18th, 2010 9:58 pm

    I worked in a Children’s Orchard for over 10 years – and I have to agree w/ everything visitor2 has had to say – the old ownership and contract was a pleasure to work with. The owner of the franchise was behind the small business owner 100%. After the turnover of the franchise in ’04 – we seemed to lose all sense of individuality — Had no one-on-one help (yes – the new owners didn’t even bother to learn our names) Running our delightful business became a headache.
    I loved the store and concept – but can no longer support it knowing the deception behind the front door!

45. Visitor2 on January 19th, 2010 10:47 am

    I get your point.

    Basically anyone who signs a franchise agreement contract better understand that they are NOT an independent business person. The contract ties them to the franchisor in such a way that they are working FOR the franchisor, not themselves as they mistakenly might have believed.

46. Carol Cross on January 19th, 2010 12:58 pm

    Visitor2! You got it. Well said! The franchisor, under the franchise business model, has all of the advantages of an employer-owner of your business and none of the expense or risk involved in building and operating your physical business. All of this is accomplished under the routine and malicious un-bargained franchise contract witten by best attorneys that money can buy!

    Even the Congressional Advocacy Committee of the SBA advised the FTC that a franchisee isn’t an entrepreneur and isn’t buying a “business of his own” in the true sense of the words. (See Wikipedia Article on Franchising for citation of this letter) Yet, the SBA guarantees millions and millions of dollars in loans for franchisees that in turn subsidize the franchisors who can’t qualify for SBA. guaranteed loans because they are selling intangibles — territories and vague promises of support.

    Read “Buying a Franchise. The Great Franchise Hoax! A Business of Your Own?” in a Google Search.

    http://thegreatfranchisingrobbery.blogspot.com/

47. Visitor2 on January 19th, 2010 1:36 pm

    Thanks Carol. All of this is very helpful. I only wish this information was so publicly and readily available 7 years ago.

    You folks who stumble onto this information are fortunate. I hope you appreciate having the opportunity to read and learn about franchises from those who have walked the walk.

48. Theresa on January 19th, 2010 2:19 pm

    I agree we are fortunate… I would have made a very costly mistake if it wasn’t for this site. IT HAS SERVED IT’S PURPOSE!

    God Bless.

49. Grace on January 20th, 2010 3:20 pm

    To Theresa: Thank you for letting people know that this site helped you to not make a mistake.

50. guest on February 19th, 2010 12:18 pm

    Another store will be closing at the end of this month. Net result is zero growth and a 40% loss. Now they have a corporate on-line store with over inflated prices. This does not compute. The University of Michigan should be ashamed of their association with these jokers and revoke their degrees.

51. Max on February 21st, 2010 9:29 pm

    What store is closing the end of the month?

52. guest on February 22nd, 2010 1:51 pm

    A store in Ohio.

53. Theresa on February 22nd, 2010 2:03 pm

    you’d think these stores would be flowing in the money considering the economy… everyone is looking for bargins and used clothing is a great bargin. So Sad. I used to love to shop at CO now it’s just like paying full price.

54. Visitor2 on February 23rd, 2010 11:12 am

    Keep in mind while this brand is not doing so hot, other resale brands are doing well. This franchise is managed by screwed up master minds who use whips to get their horses (franchisees) to run in the direction they dictate. The stunning drop in store numbers is proof that their way doesn’t work. They are abusive dictators that fail at every business they touch. They do not have one success to point to, and continue to hammer people until they break. It is criminal what the franchise system allows in this country. The FTC is a joke when it comes to franchisor regulation. Instead of being the great American dream, franchising is the great American nightmare.

55. ADMIN on February 23rd, 2010 1:21 pm

    From Entrepreneur magazine http://www.entrepreneur.com/magazine/entrepreneur/2010/february/204624.html:
    “The greatest hand-me-down from the weak economy just might be the resale shop. Sales in second-hand stores leaped $223.3 million last year, according to market research–that’s a 31 percent jump in business, when the rest of retail is foundering.”

    “…Uptown Cheapskate. Stores in Salt Lake City and Greensboro, N.C., are already up and running, and four more are slated to open this year. ‘Our stores are doing wonderfully in the recession,’ Sloan says. ‘People are now proud of finding deals–it’s in vogue to be thrifty.’”

    And from http://www.entrepreneur.com/trends/index.html
    “Resale shops. In 2009, secondhand shops increased revenue by $223.3 million, according to IbisWorld. The National Association of Resale Professionals reports that secondhand stores had an average 31 percent increase in business this year.”

    Seems like Children’s Orchard stores should be thriving in this economy.

56. Grace on February 25th, 2010 10:26 am

    The articles ADMIN posted only serve to underscore the shambles the Children’s Orchard franchise system is experiencing at the hand of the owners who took over in 2004. I only wish I knew why.

57. confused on February 26th, 2010 7:44 am

    Do the franchisees get anything off the on line store?

58. guest on February 26th, 2010 12:30 pm

    From what I can tell, customers of the on-line store need to spend 25 and will get a 5 card to spend in a local Children’s Orchard. This only works if the customer lives within driving distance of a Children’s Orchard. So it looks like the franchisees really get zip.

59. guest on March 3rd, 2010 10:51 am

    Any “takers” want to bet on how long this sad looser franchise system will stay afloat? Heard that corporate office staff numbers are smaller, and some corporate office employees must have been pulled, because they have been spotted working at the corporate-owned store on a regular basis. Let’s see now, Taylor Bond boasted a few years ago, when he had over 80 stores he would grow the system to 300, and the latest count is 50 stores! Hey Taylor, you are running toward the wrong goal post!

    He is the Bernie Madoff of franchisors!!

60. Fooled on March 4th, 2010 9:44 am

    An opportunity. That is all I wanted. I wanted a chance to add to our family income. Getting involved in this franchise was the worst mistake of my life. I talked my husband into this and now we are facing bankruptcy. The only opportunity was for the company, not for me. There are real opportunities, like Once Upon A Child or others, but not this one. Be sure to take a long hard look at what the others are doing and please think twice. Or better yet, run away.

61. Guest on March 6th, 2010 11:21 am

    The store in my community just closed (Colorado) after being listed for sale for nine months. So sad that the franchise does not allow these store owners the opportunity to make a profit so they can stay motivated to keep the concept alive. I belive they were open just over three years.

62. Fooled on March 11th, 2010 4:14 pm

    The more I read about the experiences of other franchisees, the more I realize I wasn’t alone in being fooled. It looks like this franchise has stopped fooling people, because the store closings are now getting alarming. It clearly is a system in critical distress, and my guess sometime in the next 5 years it will be gone.

63. Guest on March 15th, 2010 10:21 am

    I disagree. The Bond’s know exactly what they are doing, they are very smart. I say they will sell off the remaining franchisees to Taylor’s previous employer, Winmark which will make them become OUAC franchisees. Drop into the corporate store sometime and you will see they now have clothing racks exactly like the ones used by OUAC. Taylor is too smart to ruin this business without a grand plan. Believe me he has one.

64. Maggie on March 15th, 2010 6:17 pm

    I agree, the Bonds will probably sell. Probably sooner than later. The value of their business is diminishing as they lose more and more units. The longer they keep it the more value they lose.

    If they do sell it would be beneficial to the franchisees. The new owners would probably have more financial resources as well as industry knowledge and leadership skills. Hopefully it is OUAC or Kid to Kid. It would make sense for either of them. They would get approx. $800,000 in royalty income. They could eliminate the current CO staff and overhead and use their own existing staff and overhead. It sounds like a win-win-win. Taylor gets to bail out. Francisees get new competent leadership. New owners get a stream of income with almost no expenses.

    The issue is price. Taylor will ask some ridiculous price while prospective buyers will see a system that has lost 40% of its units in the last 5 years and is in general disarray. Therefore, the buyers inclination will be to lowball.

    Who knows? Hope for the best.

65. guest 3 on March 17th, 2010 5:53 pm

    Taylor Bond Smart? What are you smoking? I’m sure he’s being squeezed by the other investers as they see their investment dry up. This has been a huge failure by this moron, who has probably risked his family’s money. He must be a joy to live with these days.

66. Guest on March 19th, 2010 10:51 am

    His family, the enablers, are the “other investors”. There are no outside of the family, investors. That’s the whole problem. No checks and balances. Taylor plays with this business like it is a toy to be tinkered with, and he tries to outsmart the system, which has produced failure.

67. Guest on March 19th, 2010 11:41 am

    What happened with the established welcome service franchise that Taylor Bond acquired?

    Is there ever any mention of that? Did that go the way of egismoz?

68. visitor on March 19th, 2010 12:01 pm

    Newcomers still has a website.. but how could it have ever survived… You can start up your own welcome service from another ‘provider’ with a $59 start up kit.. who on earth would fork-out between $25,000 and $35,000 to run this type of business. You can also “work” for Welcome Wagon as an employee.. no start up. Another ridiculous scheme by Mr. Bond.

69. Visitor2 on March 19th, 2010 4:23 pm

    Yes you are right, scam and more scam. TB never sold one Egizmos franchisee, the Egizmos store opened and closed in less than 1 year, and the Egizmos Ebay store fizzled out and like everything else he touches, turned to crap. As far as Newcommers goes, nope no way no how….not one franchise sold, and the doors were shuttered and shades pulled down and employees, gone. Fancy schmancy website doesn’t mean one thing. The franchisees who are still up and running have had their brand de-valued by the criminal business practices and criminal franchise contract. But no, they just keep smiling and nodding and doing nothing. They simply do not care what has happened to others, as long as they are spared. But that may not be the case in the future.

70. Guest on March 30th, 2010 11:20 am

    Here’s a bit of sad irony for you.

    The Children’s Orchard blog featured the Parker, CO store
    Parker Colorado Store Featured In News Article “Resale Shops Prosper With Weak Economy.”
    http://blog.childrensorchard.com/2008/09/22/parker-colorado-store-featured-in-news-article-resale-shops-prosper-with-weak-economy/

    “Kenya Huppert, co-owner of The Children’s Orchard at Dransfeldt Road and Plaza Drive in Parker, said …The nice thing about this kind of business is people always need to save money when they can. In a bad economy, you can’t really be hurt in a business like this…”

    Evidently you can… “Children’s Orchard in Parker, CO just closed its doors after 3 years.”
    http://www.tgtbt.com/w-agora/download_thread.php?site=tgtbt&bn=tgtbt_selling&thread=1268073890#N1268073890

    Customers also posted about the closing on the CO Facebook page

71. Grace on April 2nd, 2010 10:28 am

    Wrong! Just plain wrong! More will close and this franchisor will skate away with no accountability and move on to another business to ruin. For those stores remaining I have a question. Is this stuff OK with you? Has any remaining owner picked up the phone and called Taylor to ask him what is going on? Or do you REALLY believe that stores close because of bad franchisees? This brand has been ruined and stores trying to get out of the system by selling are finding that prospective buyers run screaming away from the corporate headquarters after meeting and talking to the “executive team.” Does anybody out there care? Or is it easier to look the other way and not acknowledge that this system is crashing and burning. On second thought, maybe that’s what the remaining franchisees want…a crash and burn that will set them free….no matter the cost to other people. It. Is. a. shame.

72. Visitor2 on April 2nd, 2010 10:45 am

    Sorry to learn about the latest closing. Grace is right. Current owners are too afraid to speak up and could care less about what is happening to other franchisees as long as it doesn’t happen to them. Looks like the system count is at about 52 stores right now, down 9 from a year ago. How could you not care?

73. guest on April 3rd, 2010 2:26 pm

    It is not that the existing franchise owners don’t care. Beleive me, many are completely freaking out. We see the trend to copy Once Upon a Child. What do you think the new buying system is being modeled after? Straight bar racks? Identical to Once Upon a Child. We visited one of their stores and spoke with their owner. Same square footage, higher sales, more merchandise on the floor, lower labor costs. Many of us are shaking our heads thinking this should be a high revenue generating year with the economy and Green trends. But our stores are still struggling! Those that are in existance, it is by the skin of our teeth that we are desperately hanging on.

    Do I care? Yes, I think it is wrong that sooo many good people have faced or are facing financial ruin. The only thing I can think of is if TOC can collaborate and higher a good franchise lawyer to help those that were run out of business and those that are barely hanging on, hoping to fulful the life term of their contract. What kind of suit is it when more than one sue the same defendent for various acts? Class action suit.

    The hope to sell a store is all but naught, the brand value is worthless and the management of this frachnise have no clue as to what they are doing. Rumor has it that the owner of the Once Upon a Child franchise fired Taylor. Taylor in turn bought Childrens Orchard with the focus to out grow OUAC. IF this is in fact true then I guess the management of OUAC knew a poor leader when they saw one.

    We are extremely unhappy with the current situation. Any move that is not in line with C.O. results in threatening emails, if you don’t provide this you will be cut from the CORE program. We can not afford to go under, we are doing everything we can to not to before our contract term runs out. Once the contract is up, we will probably end up having to close as I am not sure if the franchise will sell with the current franchise owners in place. If we had known then what we were getting into, we would have run the other way and invested in something different. However, we are in it for now and have to deal with our store and make sure that we don’t go under.

    I do have a sneaky suspicion that Taylor is positioning the remaining stores for sale to OUAC franchisor as there seems to be a concerted effort to model after them right now. I can only hope that happens soon before any of the remaining stores face closure.

74. Visitor2 on April 5th, 2010 12:18 pm

    Very interesting. If the parent company of OUAC (Winmark) “fired” Bond, then I would question why they would “acquire” COI from him after he has screwed it up and left his fingerprints everywhere?

    Selling to Winmark, does not fit Bond’s MO, which is to gamble.

75. Guest on April 10th, 2010 9:03 am

    I think all of you are barking up the wrong tree. The owners can survive just fine on 40 stores. They have already controlled costs by paring down their employees and not spending dollars sending Cathy Marks or anyone else out to do store review visits. I wonder how long they will continue to keep her?

76. Guest on April 13th, 2010 12:57 pm

    Any of you thinking of buying a franchisee, beware! We owned one of the stores that closed, and the corporate office gave out our personal information to customers including addresses, home and work numbers, and anything else they could so we could be harassed! Expect everything to go fine as long as you pay your fees and keep your mouth shut! At the first sign of trouble, you are on your own! If this is the kind of business you want to be in, check out Kid-to-Kid or OUAC. Of the three, CO ranks third! Good luck!

77. Grace on April 14th, 2010 8:21 am

    No new locations, only re-sales. That alone should speak for the state of this franchise.

78. visitor on April 15th, 2010 4:12 pm

    51 stores and I know another is closing in May.

79. Smitty on April 15th, 2010 5:40 pm

    What store is closing in May?

80. Guest on May 13th, 2010 6:51 am

    Anything new going on? Has Taylor started any new losing ventures?

81. ADMIN on May 13th, 2010 10:50 am

    New post on Children’s Orchard:  CHILDREN’S ORCHARD: CEO Taylor Bond Claims Franchisees Giving “Rave Reviews”

    Comments invited.

82. stop whining on May 18th, 2010 12:38 pm

    Maybe the franchisees are cutting off their noses to spite their face, as they say.

    “Just In! Listings” sounds like a good marketing idea but when I checked the 9 or so stores in MA only one store had 1 item posted.

    How can Children’s Orchard provide improvements if their franchisees won’t participate or use the tools provided? Are CO franchise owners determined to fail to prove themselves right?

83. Guest on September 2nd, 2010 8:54 am

    Any new stores closing soon?

84. visitor on September 2nd, 2010 9:16 am

    Just counted open stores on CO website – they are down to 45!!!

85. guest on September 2nd, 2010 10:50 am

    In the comments over here there’s a list of the most recent stores to disappear from the list

    http://www.unhappyfranchisee.com/childrens-orchard-ceo-taylor-bond-claims-franchisees-giving-rave-reviews/

86. Tom on September 3rd, 2010 9:21 am

    Check this link out about Bond. http://lucyannlance.com/?p=5989 Scroll down to his pic and listen to the audio. Maybe we should visit her facebook page and put this pages link on there!

87. guest on September 3rd, 2010 12:43 pm

    Interesting interview, Tom.

    Taylor Bond ducks the issue of the historic growth of the company. He talks about the company being founded by Karen Lynch and growing it to 35. He bends over backward to make it seem like it grew directly from there to the “about 50 stores” CO has now… leaving out the fact that he claimed it was “nearly 100″ when he took it over and shrunk it to 45.

    He pitches the Newcomer’s Welcome Service franchise as a great $10,000 investment. In 2007 he said it was a $25K franchise fee. They have a new website and supposedly have 7 co territories but I don’t think they have a single franchise.

    These business shows will portray anyone as a success story.

88. Guest on September 7th, 2010 6:11 pm

    Slick marketing from a slick character. His “Family Expo” reminds me of the prostitue who slaps on a ton of make-up, perfume, and fancy clothes, and skips bathing.

    He can Family Expo from here to the end of time and it will not change the core of his character nor make him honorable.

89. guest on September 8th, 2010 1:29 pm

    Down to 44 stores. San Marcos just closed in California.

    The “Have a solid business plan and banks will lend you money” quote is funny – what bank in their right mind would loan to someone buying into this failing mess. Does this guy ever shut up? Geez… he needs a public speaking class…uhuhuhuhuh

    Is this woman an idiot? She needs to do her homework before promoting such a horrible business. I’m writing a letter to her!

90. guest on September 9th, 2010 8:17 am

    It’s a local business show and Taylor Bond is a local businessman and potential advertiser. It would be interesting to see her reaction to finding out the success story reported on her show was bogus. People should email her the link to this page.

    Lucy Ann Lance lucyann@lucyannlance.com

    Condolences to the San Marcos store owners.

91. anon on September 9th, 2010 8:39 am

    San Marcos RIP opened in October 2006. The story about their opening references three stores having closed in San Diego.

    http://www.childrensorchard.com/images/stories/news/San%20Marcos%20Article%20Union%20Tribune%2012-06.pdf

    “In the recent past, there have been three Children’s Orchard boutiques in San Diego that have closed. Marks said two were owned by one person who closed them for personal reasons. The third store was not performing to “our satisfaction,” Marks said.”

    Always the franchisees fault.

92. Guest on September 9th, 2010 2:47 pm

    I am sorry to hear about this latest closing. What a shame.

93. JAS on November 3rd, 2010 7:59 pm

    Of the remaining stores…who plans on re-signing with Taylor Bond..he better get a game plan…we are!

94. Robin Hood on November 3rd, 2010 8:42 pm

    Any one who thinks CO franchises are your only option i have good news. I know of a childrens resale company who has NO long term commitments, NO outragous franchise fees and NO percentage payments based on sales. A very reasonable flat fee and a short 3 year commitment to the program and thats it. You may leave or resign annualy and never feel pressured or stifled by confiscatory franchise practices. We have managed other franchises that grew to over 250 stores nationwide and want to pay it forward and show others how its done. We will be aggressively pursuing CO franchisees whos contracts are expiring and looking for sane and reasonable options. Its time to clear cut the orchard and plant some new crops. Hard work deserves to be rewarded, not punished with punitive fees and confiscatory policies. Contact me if you are interested in making self employment a reality and not an anchor around your neck and business. No one should lose their life fortune from a franchise agreement. Look forward to hearing from you all. Join our winning team! [redacted]

95. Interested but leary on November 5th, 2010 10:37 am

    Hi Robin Hood; Spill the beans on this new and improved – franchise. What is the typical start up cost? I am in LA county. What is the name of this children’s store. I’ve always wanted to have my own resale childrens’ store but can’t afford to jeopordize our lifes savings.

96. visitor on November 5th, 2010 5:02 pm

    43 stores

97. Robin Hood on November 5th, 2010 7:03 pm

    Hello Leary, i would love to share more with you unfortunately the sensors on this site force creativity in making connections. (redacted) my direct email. If you do FB i can send you to our page if my email addy is redacted. Look forward to sharing with you, always love to help a fellow Californian! So Cal would be a great addition.
    RH

    Admin note: if you would like to exchange email addresses, send a request to unhappyfranchisee(at)gmail.com. Be prepared to share your real identity and info on the biz opp you are trying to use our site to advertise for free. If you would prefer to get banned from the site, be clever & disrespect our policies one more time, “Robin Hood.” There are reasons we don’t allow emails to be posted.
    PS I think you mean “censors.”

98. John on November 7th, 2010 1:01 am

    The above guy selling his “business opportunity” which probably legally falls under the definition of a franchise, may want to research “Torturous Interference”.
    If someone has a contract with someone, and you are inducing them to break it, you may have legal exposure.

99. CHILDREN’S ORCHARD Suing Failed Franchise Owner : Unhappy Franchisee on November 10th, 2010 1:48 pm

    [...] CHILDREN’S ORCHARD: Overview & Links [...]

100. Dumbfounded in SoCal on November 12th, 2010 3:06 am

     WOW..so grateful for this site. I was looking into buying an existing CO franchise, thinking it would be smart to save on the franchise / territory fees etc. Now I’m completely spooked and would like to thank everyone for taking the time to post your thoughts & experiences with the Franchisor. I think I’m going to hold out and see if they sell out before I make any moves.
     In response to Fooled on March 4th.. I was pushing this idea on my husband because I love the whole concept too. Such a shame, I’m so sorry. Best of luck!

101. JH in Vegas on November 19th, 2010 5:21 pm

     Looking at all of your posts here, I am wondering why most folks even bother buying into this franchise. About 2 years ago I was considering opening a CH francise and visited another local CO store, it looked like a cheap, terrible flea market with clothes that appeared to be dirty and a rude staff. ALOT of this probably is the local owners fault, but after seeing it, I decided that it would be better to open my own childrens retail store. Yeah, I have a ton of work I have to do including buying up inventory, doing my own advertising, permitting with city/county, special use licenses, etc… but… I have zero franchise fee’s and complete control over how I market my business. Think about your options prior to jumping into one of these franchises.

102. Guest on November 26th, 2010 2:50 pm

     Well, JH, an FYI. No new stores have opened for a few years now. The contract sends people screaming away. A few resales took place, but those newer owners aren’t talking.

103. visitor on May 9th, 2011 9:47 am

     38 stores

104. Visitor2 on May 9th, 2011 12:35 pm

     Really? 38 stores. Ouch. Kinda wrong direction wouldn’t you say?

105. guest on May 17th, 2011 5:50 pm

     38 stores and dropping. Looks like the latest casualties were Thousand Oaks, CA, Colorado Spring, CO and Summerville, SC.

     Here’s where the survivors are located:

     CA: 11
     KS: 1
     MA: 8
     MI: 3
     MO: 6
     NC: 1
     NH: 1
     NV: 1
     OH: 1
     OK: 2
     TN: 1
     TX: 1
     WI: 1

     Sad. I’ll hand it to those hanging in there. Anyone know when most of the franchise agreements expire? Have any of these renewed?

SHARE A COMMENT HERE: