Start a Kid to Kid Franchise in 2024

2024 Franchise 500 Rank: #396 Ranked #313 last year

Initial investment: $360K - $595K

Units as of 2023: 115 2.7% over 3 years

Founded in 1992, Shauna Sloan created Kid to Kid to solve a big problem for parents by retailing clothes. Parents who had items that no longer fit their children could dispose of the clothes by passing them along to another child instead of to a landfill. Currently, you can find Kid to Kid in many locations around the country, and franchisees are still opening new locations in prime territories.

Kid to Kid also has an international presence and has been franchising since 1994.

Why You May Want to Start a Kid to Kid Franchise

If you'd like to positively impact your community and the environment while running a business, you may want to consider opening a Kid to Kid franchise. After all, clothing for children adds up quickly, costing families a fortune.

Kid to Kid encourages families to clean out their closets and trade in their old clothes. When you bring in clothes, most locations offer either cash on the spot or an even higher amount in store credit. This is an interesting store model because it uses families as both vendors and customers. Potentially, a family could purchase and then eventually donate the same clothes. This would be a win for you, and also represents what the company is all about.

However, these stores don't accept just anything. They want clothing that's clean, safe, and in style. That way, parents can depend on both the quality and the price.

What Might Make a Kid to Kid Franchise a Good Choice?

Through the beginning steps to ownership and beyond, Kid to Kid will strive to provide you with support. This may be seen through initial training, online training, on-the-job training, marketing training, ongoing training, and financial coaching. You may want to open a Kid to Kid franchise because there's always a demand for children’s clothing. You may be part of a system that has been around for decades and adapts to change.

To be part of the Kid to Kid team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How to Open a Kid to Kid Franchise

Most franchisees have to pass an online interview, which will help determine if you're a good fit. You can also review the support system details. This webinar session details the startup process and all the training and support they have available. After this, you'll get the chance to interact with other franchise owners, getting their tips for growth. You may wish to take this opportunity to ask lots of questions to the Kid to Kid team about their experiences.

If your net worth and available liquid capital match the brand’s requirements, you may qualify to open a Kid to Kid franchise, and you can get started with an initial investment. If all goes well, you'll attend a virtual opportunity day. Here, the director level team will usually e-meet you. Once you're done, you can work together to make your partnership official. For many franchisees, the process has taken anywhere from eight months to a year.

When you open the doors to your Kid to Kid franchise, you may also be opening up new opportunities for families in your community.

Company Overview

About Kid to Kid

Industry	Children's Businesses
Related Categories	Children's Retail, Miscellaneous Children's Businesses, Apparel & Accessories
Founded	1992
Parent Company	Kid to Kid Franchise System Inc.
Leadership	Tyler Gordon, CEO
Corporate Address	39 E. Eagle Ridge Dr. North Salt Lake, UT 84054
Social	Facebook, Twitter, LinkedIn

Business Overview

Franchising Since	1994 (30 years)
# of employees at HQ	66
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	115 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Kid to Kid franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$25,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$359,661 - $594,911
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$200,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000 - $125,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	$5,000 off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	0.5%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Kid to Kid has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	42 hours
Classroom Training	56 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	4
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes