Once Upon A Child franchise
A franchisee owns and operates a Once Upon A Child retail store that buys used children's apparel, toys, equipment, furniture and accessories directly from the public and resells them alongside a supplementary selection of new merchandise.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child)
- Document
- FDD 2026, issued 2026-03-16
- Item
- Item 15
- Page
- PDF p. 36
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640338
you must be the on-site owner/operator and personally manage the Store unless you receive Winmark's prior consent
An individual franchisee must be the on-site owner/operator and personally manage the store unless Winmark consents in advance to delegation. A franchisee operating more than one store may delegate management of the additional stores to managers, whom Winmark may require to attend the second training session. Outside employment is not prohibited, but the franchisee's primary job responsibility must be operating the store. For a corporate or partnership franchisee, one individual must hold at least 50% of the equity and voting interest and is obligated to personally manage and operate the store.
What stands out
- Total estimated initial investment of $355,700 to $485,900 for a leased 3,500 to 4,500 square foot store, of which $48,200 to $55,900 goes to Winmark ($25,000 franchise fee plus $23,200 to $30,900 for the required POS system and software licence).
- Royalty is a 5% weekly Continuing Fee on Gross Sales, on top of a $1,500 annual marketing fee, a $295 monthly software fee escalating 10% a year, and a minimum 5% of Gross Sales on cooperative and local advertising.
- Item 19 discloses average gross sales of $1,268,984 and median $1,178,261 for 408 of 441 stores for the fiscal year ended December 27, 2025; 43% of stores met or exceeded the average.
7 more observations
- Average gross profit of $846,489 (66.71%) is gross sales less cost of goods sold only. No operating expenses, net income or owner earnings are disclosed anywhere in Item 19.
- Store results range from $268,773 to $3,660,164; roughly 34% of reporting stores were below $1 million in gross sales and about 9% were above $2 million.
- The system grew from 406 to 441 franchised stores across 2023 to 2025 with no company-owned stores; 44 openings, 8 terminations and 1 non-renewal, with terminations rising to 6 in 2025.
- No litigation (Item 3) and no bankruptcy (Item 4) are disclosed.
- An individual franchisee must be the on-site owner/operator unless Winmark consents to delegation; principal owners and their spouses must personally guarantee the agreement.
- Exclusive territory of typically a 3 to 5 mile radius with no minimum sales requirement to keep it, but Winmark reserves internet and alternative-channel distribution and may operate similar businesses under other trademarks inside it.
- The FDD's state-mandated Special Risks page states that the franchisor's financial condition calls into question its ability to provide services and support to franchisees.
Things to verify
- Read Item 21 and Exhibit C financial statements closely, given the Special Risks page statement about the franchisor's financial condition.
- Item 19 gross profit is not profit. Ask franchisees for actual rent, payroll, advertising and royalty costs to work out what is left after operating expenses.
- Ask how sales ramp in the first two years, given that the 2024 opening cohort averaged $980,314 against a systemwide average of $1,268,984 and that all 2025 openings are excluded from Item 19.
7 more questions
- Confirm working capital needs beyond Item 7: quarterly inventory replenishment is disclosed at $65,000 to $80,000 and is not included in the three-month additional funds line.
- Model the compounding 10% annual increase on the $295 monthly software fee, and the possibility of a technology fee of $500 to $2,500 a year being introduced on 60 days' notice.
- Model the advertising minimum rising from 5% to 6% of Gross Sales with up to 3% redirected to a Winmark-managed ad fund.
- Understand the sourcing model: inventory comes largely from buying used goods over the counter from the public, which is an operational skill rather than a supply contract.
- Ask about the rise in terminations to 6 in 2025 and speak to franchisees listed in Exhibit B who left the system in the last fiscal year.
- Check local second-hand dealer and pawn shop regulations, which Item 1 notes may require reporting purchases, holding periods and a surety bond.
- Note that arbitration is in Minneapolis and that spouses of principal owners must sign the personal guaranty.
Category cost placeholders, not a forecast. Owner operation is required; a manager-pay deduction does not make this an absentee model. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Once Upon A Child franchisee owns and operates a retail store, typically 3,500 to 4,500 square feet of leased space, that buys used children's apparel, toys, equipment and furniture directly from the public and resells it alongside a supplementary range of new merchandise. The franchisor is Winmark Corporation of Minneapolis, which has franchised the brand since January 1993 and runs four other resale systems. Winmark operated its own Once Upon A Child stores only between 1993 and 2005 and has had no company-owned stores in any of the last three fiscal years.
Item 7 estimates the total initial investment at $355,700 to $485,900 for a leased store, including three months of rent and three months of additional funds but no real estate purchase and no owner compensation. Of that, $48,200 to $55,900 is payable to Winmark: a $25,000 initial franchise fee, reduced to $15,000 for a second store or an existing Winmark franchisee of another brand, plus $23,200 to $30,900 for the mandatory point-of-sale system and proprietary software licence. Ongoing costs are a 5% weekly continuing fee on Gross Sales, a $1,500 annual marketing fee, a $295 monthly software fee that rises 10% a year, and a requirement to spend at least 5% of Gross Sales on cooperative and local advertising. Winmark may raise the advertising minimum to 6% and route up to 3% into a fund it manages. No minimum liquidity or net worth requirement is disclosed in the reviewed source.
Item 19 does report sales. For the fiscal year ended December 27, 2025, the 408 franchised stores in the United States and Canada that had been under the same ownership for the full year averaged $1,268,984 in gross sales, with a median of $1,178,261, and 43% reached or beat the average. The same table shows average gross profit of $846,489, or 66.71% of sales, but that is sales less cost of goods sold only: rent, payroll, royalties, advertising and every other operating expense are still to be deducted, so it is not earnings. Results vary widely, from $268,773 to $3,660,164, with quartile averages of $689,235 to $2,009,668 and about a third of stores below $1 million. Stores that opened in 2024 averaged $980,314 against $1,334,370 for stores open since 2019 or earlier. The 32 stores that opened or transferred during the year are excluded. No operating expense, net income or owner earnings data is disclosed.
Item 20 shows steady growth. Franchised stores in the United States and Canada went from 406 at the start of 2023 to 441 at the end of 2025, on 44 openings against 8 terminations and 1 non-renewal, with no reacquisitions and no company-owned stores at any point. Terminations rose to 6 in 2025 from 1 in each of the two prior years. Transfers to new owners ran 18, 19 and 15. Winmark projects 29 new franchised openings in the next fiscal year and reports 29 signed agreements for stores not yet open. Items 3 and 4 disclose no litigation and no bankruptcy. The agreement runs 10 years, requires arbitration in Minneapolis, requires principal owners and their spouses to sign a personal guaranty, and carries a two-year, 10-mile post-term non-compete. The document's state-mandated risk page states that the franchisor's financial condition calls into question its ability to provide services and support.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 406 → 441 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $1,268,984 (disclosed) ÷ midpoint investment $420,800 = 3.02×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 93% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 33 years (since 1993) · 441 outlets · Item 3: no litigation disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- There is no formal area development or multi-unit agreement described. Additional stores are bought one at a time under separate franchise agreements. An exi… · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: Single new Once Upon A Child store in leased retail space, typically 3,500 to 4,500 square feet
$355,700–$485,900 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $25,000 Disclosed
The fee drops to $15,000 for a second/subsequent Store or an existing Winmark franchisee — a discount for repeat buyers, not the standard new single-Store rate. Other required Item 5 payments to the franchisor are listed separately below — this figure is the named fee only. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $48,200 Disclosed
Cover page: total investment of $485,900 'includes $48,200 to $55,900, which must be paid to us.' $55,900 Disclosed
Cover page: total investment of $485,900 'includes $48,200 to $55,900, which must be paid to us.' |
| Total initial investment — low | $355,700 Disclosed
Winmark describes the total as its estimate of nationwide average costs for the pre-opening investment plus the first three months of operation. |
| Total initial investment — high | $485,900 Disclosed
|
| Midpoint of range | $420,800 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child); we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement is stated on the cover page or in Items 1, 5, 7 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child); we do not fill gaps with estimates or third-party figures. No minimum net worth requirement is stated in the reviewed document. |
Assumes a leased store of roughly 3,500 to 4,500 square feet; no real estate purchase is contemplated and Winmark does not offer or arrange financing for any part of the initial investment (Item 10). The total includes three months of rent and three months of additional funds but excludes the owner's own compensation during that period and excludes inventory replenishment beyond the opening inventory. Item 6 note 12 states that quarterly inventory replenishment generally runs $65,000 to $80,000. The line items foot exactly to the disclosed $355,700 and $485,900 totals.
Item 7 line items (12)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee — $15,000 for a second or subsequent store, or for an existing franchisee of another Winmark brand. | $25,000 | $25,000 |
| Fixtures and supplies — Paid to third-party suppliers; cost rises with square footage. | $60,000 | $75,000 |
| Signs — Interior and exterior signs must be bought through Winmark-designated preferred suppliers. | $10,000 | $15,000 |
| Security system and/or cameras — Minimum of four cameras plus motion detectors, entrance security and glass breakage detectors. | $1,500 | $4,000 |
| Point-of-sale (POS) system — Payable to Winmark; includes a $6,000 proprietary software licence fee. Excludes sales tax and shipping. | $23,200 | $30,900 |
| Leasehold improvements — Flooring, slat wall, lighting and decor, paid to third-party contractors and architects. | $11,000 | $21,000 |
| Build-out — Labour to build the location to brand standards. | $35,000 | $55,000 |
| Deposits and business licenses — Deposits generally refundable; licence fees are not. | $5,000 | $15,000 |
| Opening inventory — Winmark recommends $16.66 to $24.28 per square foot of selling space and 90% used inventory, and may refuse to allow opening with less than $75,000 in used inventory. | $75,000 | $85,000 |
| Miscellaneous pre-opening expenses — Includes travel and lodging for two people at initial training and a $395 online financial management course. | $50,000 | $80,000 |
| Rent — first 3 months — Annual rent estimated at $80,000 to $120,000. | $20,000 | $30,000 |
| Additional funds — 3 months — Wages, insurance, advertising, taxes, supplies and loan interest for the first three months. Excludes inventory replenishment and any owner compensation. | $40,000 | $50,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child) (table begins PDF p. 17) — rows inherit the table's citation rather than carrying fifteen identical ones.
Ongoing fees
FDD Item 6Royalty
5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child)
- Document
- FDD 2026, issued 2026-03-16
- Item
- Item 6 — Other Fees table — Continuing Fee
- Page
- PDF p. 13
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640338
Called the Continuing Fee. Payable weekly, on or before Wednesday for the prior week, by automatic withdrawal from the franchisee's bank account. Gross Sales excludes sales tax, customer refunds and returns, and wholesale transactions between franchisees in good standing. Winmark notes that some franchisees on earlier agreements may pay a lower rate; all new franchisees pay the stated rate.
Brand advertising fund
$1,500/year Disclosed
- Source
- 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child)
- Document
- FDD 2026, issued 2026-03-16
- Item
- Item 6 — Other Fees table — Marketing Fee
- Page
- PDF p. 13
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640338
Flat Marketing Fee of $1,500 per year payable to Winmark on January 1, prorated in the first year. Winmark may increase it on 60 days' notice but not by more than $1,000 over the term of the franchise agreement. Separately, Winmark may impose a North American Ad Fund contribution of up to 3% of Gross Sales; Item 6 states it is not currently charging that fund, and any such fund would come out of an advertising minimum raised to 6% of Gross Sales.
Local marketing
5%–6% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child)
- Document
- FDD 2026, issued 2026-03-16
- Item
- Item 6 — Other Fees table — Local Marketing Expenses, notes 5 to 7
- Page
- PDF p. 13
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640338
Franchisees must spend at least 5% of Gross Sales per calendar year on cooperative and local advertising combined. If less than 5% is spent, Winmark may require payment of the shortfall to be spent in the franchisee's market the following year at Winmark's discretion. On 60 days' notice Winmark may raise the combined minimum to 6% of Gross Sales, of which up to half (3%) could be redirected to a Winmark-managed North American Ad Fund.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 5% of gross sales Disclosed
Called the Continuing Fee. Payable weekly, on or before Wednesday for the prior week, by automatic withdrawal from the franchisee's bank account. Gross Sales excludes sales tax, customer refunds and returns, and wholesale transactions between franchisees in good standing. Winmark notes that some franchisees on earlier agreements may pay a lower rate; all new franchisees pay the stated rate. Called the Continuing Fee. Payable weekly, on or before Wednesday for the prior week, by automatic withdrawal from the franchisee's bank account. Gross Sales excludes sales tax, customer refunds and returns, and wholesale transactions between franchisees in good standing. Winmark notes that some franchisees on earlier agreements may pay a lower rate; all new franchisees pay the stated rate. |
|---|---|
| Advertising / brand fund | $1,500/year Disclosed
Flat Marketing Fee of $1,500 per year payable to Winmark on January 1, prorated in the first year. Winmark may increase it on 60 days' notice but not by more than $1,000 over the term of the franchise agreement. Separately, Winmark may impose a North American Ad Fund contribution of up to 3% of Gross Sales; Item 6 states it is not currently charging that fund, and any such fund would come out of an advertising minimum raised to 6% of Gross Sales. Flat Marketing Fee of $1,500 per year payable to Winmark on January 1, prorated in the first year. Winmark may increase it on 60 days' notice but not by more than $1,000 over the term of the franchise agreement. Separately, Winmark may impose a North American Ad Fund contribution of up to 3% of Gross Sales; Item 6 states it is not currently charging that fund, and any such fund would come out of an advertising minimum raised to 6% of Gross Sales. |
| Required local marketing | 5%–6% of gross sales Disclosed
Franchisees must spend at least 5% of Gross Sales per calendar year on cooperative and local advertising combined. If less than 5% is spent, Winmark may require payment of the shortfall to be spent in the franchisee's market the following year at Winmark's discretion. On 60 days' notice Winmark may raise the combined minimum to 6% of Gross Sales, of which up to half (3%) could be redirected to a Winmark-managed North American Ad Fund. Franchisees must spend at least 5% of Gross Sales per calendar year on cooperative and local advertising combined. If less than 5% is spent, Winmark may require payment of the shortfall to be spent in the franchisee's market the following year at Winmark's discretion. On 60 days' notice Winmark may raise the combined minimum to 6% of Gross Sales, of which up to half (3%) could be redirected to a Winmark-managed North American Ad Fund. |
| Technology / software | $295/month Disclosed
Software Fee of $295 per month plus tax under the Software License Agreement, covering maintenance, repair and software updates. It begins the later of the first month after opening or September 1, 2026, and is subject to a compounding 10% annual increase. Item 6 lists a separate 'Technology Fee' that Winmark currently charges at $0; if established on 60 days' notice, Winmark estimates it at $500 to $2,500 per store per year, also with a compounding 10% annual escalator. Software Fee of $295 per month plus tax under the Software License Agreement, covering maintenance, repair and software updates. It begins the later of the first month after opening or September 1, 2026, and is subject to a compounding 10% annual increase. Item 6 lists a separate 'Technology Fee' that Winmark currently charges at $0; if established on 60 days' notice, Winmark estimates it at $500 to $2,500 per store per year, also with a compounding 10% annual escalator. |
| Advertising cooperative | 0.5%–5% of gross sales Disclosed
Winmark or local franchisees may form an advertising cooperative. The cooperative sets the contribution rate, but a franchisee's required contribution can never be less than 0.5% of Gross Sales regardless of a cooperative vote, and the maximum is 5% of Gross Sales. Cooperative contributions count toward the 5% combined advertising minimum. Citation audit 2026-09-04: page corrected 13 -> 14 (value verified on p. 14). Winmark or local franchisees may form an advertising cooperative. The cooperative sets the contribution rate, but a franchisee's required contribution can never be less than 0.5% of Gross Sales regardless of a cooperative vote, and the maximum is 5% of Gross Sales. Cooperative contributions count toward the 5% combined advertising minimum. Citation audit 2026-09-04: page corrected 13 -> 14 (value verified on p. 14). |
| Transfer fee | $10,000 one-time Disclosed
Due before completion of a transfer of the franchise agreement, a substantial portion of the store's assets, or any controlling interest in the franchisee. Item 17 states no transfer fee is required if the assignee is the franchisee's spouse or child. Due before completion of a transfer of the franchise agreement, a substantial portion of the store's assets, or any controlling interest in the franchisee. Item 17 states no transfer fee is required if the assignee is the franchisee's spouse or child. |
| Renewal fee | $10,000 one-time Disclosed
Due 30 days before renewal of the franchise agreement. Due 30 days before renewal of the franchise agreement. |
| Royalty + ad fund (% of sales) | Not comparable — royalty 5%; the other fee is not a percent of sales Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child); we do not fill gaps with estimates or third-party figures. |
Fee schedule (16 fees; 15 verified against the source, 1 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Continuing Fee | 5% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 13 | Paid by mandatory ACH withdrawal. Some earlier-agreement franchisees may pay a lower legacy rate; all new franchisees pay 5%. |
| Marketing Fee | $1,500 | annual | Yes | verified (2-pass) | Item 6, p. 13 | Prorated in year 1. Winmark may raise it on 60 days' notice but not more than $1,000 over the franchise term (cap $2,500/yr). |
| Cooperative Advertising | 0.5%–5% of gross sales | varies | No | verified (tie-break) | Item 6, p. 13 | Applies only where Winmark or local Once Upon A Child franchisees have established an advertising cooperative in the franchisee's area; the cooperative sets the amount, subject to the 0.5% floor and 5% ceiling. There are currently no company-owned stores, so cooperatives are entirely franchisee-funded. Both passes read the 0.5%-5% band the same way. Pass B's structure is adopted: the Due Date column says only "Established by Winmark or franchisees", so no fixed frequency is disclosed (frequency "varies"), while note 6 measures the aggregate obligation per calendar year (minimum/maximum period annual). |
| Local Marketing Expenses | 5%–6% of gross sales | annual | Yes | verified (tie-break) | Item 6, p. 13 | Spent in the franchisee's own market rather than paid to Winmark. If less than 5% of Gross Sales is spent on cooperative plus local advertising in a calendar year, Winmark may require the shortfall to be paid to Winmark and spent on that market the following year at Winmark's discretion. Id kept as local-marketing-expenses (Pass A / the record's naming); Pass B's identical entry used the id local-advertising-minimum. |
| North American Ad Fund | Not stated | weekly | No | verified (2-pass) | Item 6, p. 13 | Only payable if and when Winmark establishes the Ad Fund. Not established as of the issuance date; Winmark reserves the right to impose it on 60 days' notice, in which case up to 3% of Gross Sales would be redirected from the local/cooperative advertising minimum (raised to 6%) into an Ad Fund Winmark administers. |
| Transfer Fee | $10,000 | one time | Yes | verified (2-pass) | Item 6, p. 13 | Payable when the Franchise Agreement, substantially all Store assets, or a controlling interest in the franchisee is transferred. Not required if assignee is franchisee's spouse or child (Item 17, provision p). |
| Audit Expenses | Not stated | per event | No | verified (2-pass) | Item 6, p. 13 | Reimburses Winmark's cost of an inspection/audit, but only if it reveals Gross Sales were understated by more than 2%. |
| Renewal Fee | $10,000 | one time | Yes | verified (2-pass) | Item 6, p. 13 | Due once per renewal (each additional 10-year term), not an annual recurring charge. |
| Software Fee | $295 | monthly | Yes | verified (2-pass) | Item 6, p. 13 | Covers Software License Agreement maintenance/repair/updates. Begins later of month after opening or Sep 1, 2026; subject to a compounding 10% annual increase. |
| Technology Fee | $0 (min $500/annual) | varies | No | verified (tie-break) | Item 6, p. 13 | Currently $0. Winmark may, on 60 days' notice, establish a periodic technology fee for extranet, training-platform and social/digital media management services; if established it is subject to a compounding 10% annual increase. Note 10 (pages 15-16) supplies the $500-$2,500 per year per Store estimate and the 10% compounding escalator. |
| Remodeling Expenses | Not stated | varies | Yes | verified (tie-break) | Item 6, p. 13 | Required on notice from Winmark, but no more often than once every 5 years. The remodel must conform to the standards then required for similarly situated new stores and plans must be pre-approved by Winmark. Item 6 note 11 appears on page 16. |
| Insurance | Not stated | varies | No | verified (2-pass) | Item 6, p. 13 | Only a recurring cost to Winmark if the franchisee lets its own insurance lapse and Winmark advances the premium. |
| Inventory | $65,000–$80,000 | quarterly | Yes | verified (tie-break) | Item 6, p. 13 | Varies significantly with seasonal changes in demand and store sales. $260,000-$320,000 a year implied. The $75,000-$85,000 opening inventory is a separate Item 7 line, not this recurring cost. Calculator audit 2026-09-03: This is quarterly cost-of-goods spend, not a fee duplicated in another schedule line - 'included_elsewhere' with overlaps_with left null wrongly implies it's folded into a sibling fee row. The correct treatment for an Item 6 inventory/COGS line, matching how the sibling brand scooters-coffee models its own 'Inventory Purchases from Franchisor or Affiliate' row, is not_applicable. (p. 13; "You will need to replenish your Store inventory ... these costs generally range ") |
| Interest Expenses | 18% of other | varies | No | verified (tie-break) | Item 6, p. 14 | Payable only if the Continuing Fee or other amounts due Winmark are not timely paid. Id kept as interest-expenses (Pass A / the record's "Late payment interest"); Pass B used the id interest-on-late-payments. |
| Costs and Attorneys' Fees | Not stated | varies | No | verified (tie-break) | Item 6, p. 14 | Payable only if the franchisee loses a dispute with Winmark. Id kept as attorneys-fees-recovery (Pass A); Pass B used the id costs-and-attorneys-fees for the same row. |
| Costs and Attorneys' Fees | Not stated | per event | No | single-pass | Item 6, p. 14 | Recoverable by Winmark only if the franchisee loses a dispute with Winmark. [Listed by one verification pass only (B); not independently confirmed.] |
Item 6 also lists insurance reimbursement (payable to Winmark only if the franchisee fails to pay a premium and Winmark pays it), and Winmark's costs and reasonable attorneys' fees if the franchisee loses a dispute with Winmark. Item 6 note 1 states all fees are payable to Winmark, uniformly imposed and non-refundable except where otherwise noted.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: 408 of the 409 franchised Once Upon A Child stores in the United States and Canada that commenced operations between 1988 and 2024 and were operated by the same franchisee or owners for the entire 12 months ended December 27, 2025. This is a subset of the 441 stores open and operating at December 27, 2025: 32 stores that opened or were transferred during the year are excluded, as is one of the 409 otherwise eligible stores. No company-owned stores exist, so all figures are franchised stores. Canadian stores are included; Winmark states they do not differ materially from U.S. stores in design, operation, obligations, square footage or inventory sourcing. Figures are as reported by franchisees to Winmark.
Qualifications: Figures are as reported by franchisees to Winmark and the FDD does not state that they were audited. The population is a subset: 408 of the 441 stores open at fiscal year end, excluding 32 stores that opened or transferred during the year plus one otherwise eligible store, so newly opened stores are absent and the sample skews toward established locations. It combines United States and Canadian stores; Winmark states the two groups are not materially different. Gross profit is gross sales less cost of goods sold only and is not net income — no rent, payroll, royalty, advertising, debt service or owner compensation figures are disclosed anywhere in Item 19. The percentages of stores 'attaining or exceeding' the average in the cohort table are measured against the systemwide average, not each cohort's own average. Footnote 7 to the sales-range column reads 'As reported by Music Go Round franchisees to Winmark', which appears to be a labeling error carried over from another Winmark brand; the range values themselves are consistent with the Once Upon A Child quartile table. The population share of the system recorded here (92.5%) is our arithmetic on the disclosed counts 408 and 441, not a figure Winmark states.
View full Item 19 disclosure and tables
Winmark makes a financial performance representation covering sales and gross profit, but not profit. For the fiscal year ended December 27, 2025, the 408 reporting franchised stores in the United States and Canada averaged $1,268,984 in gross sales with a median of $1,178,261, and 43% of them reached or beat the average. Average gross profit was $846,489, or 66.71% of sales — that is sales minus cost of goods sold, before rent, wages, royalties, advertising and every other operating cost, so it should not be read as earnings. The spread is wide: quartile averages run from $689,235 to $2,009,668 and individual stores ranged from $268,773 to $3,660,164, with about a third of stores below $1 million and roughly 9% above $2 million. Cohort figures by year of opening show stores that opened in 2024 averaging $980,314 against $1,334,370 for stores open since 2019 or earlier. Nothing in Item 19 discloses operating expenses, net income or the cash a franchisee would take home.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Average annual gross sales — all reporting franchised stores 43% of units met or exceeded 175 of 408 stores attained or exceeded the average. | System (U.S. and Canada, same owner full year) Average | $1,268,984 | 408 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Median annual gross sales — all reporting franchised stores | System (U.S. and Canada, same owner full year) Median | $1,178,261 | 408 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Highest single-store gross sales | System (U.S. and Canada, same owner full year) High | $3,660,164 | 408 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Lowest single-store gross sales | System (U.S. and Canada, same owner full year) Low | $268,773 | 408 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Average gross sales — top quartile 34% of units met or exceeded Quartile sales range $1,554,407 to $3,660,164; quartile median gross sales $1,876,577. | Top quartile (1st) Quartile avg. | $2,009,668 | 102 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Average gross sales — second quartile 47% of units met or exceeded Quartile sales range $1,178,270 to $1,552,530; quartile median gross sales $1,345,919. | 2nd quartile Quartile avg. | $1,353,126 | 102 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Average gross sales — third quartile 57% of units met or exceeded Quartile sales range $872,288 to $1,178,252; quartile median gross sales $1,032,314. | 3rd quartile Quartile avg. | $1,023,906 | 102 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Average gross sales — bottom quartile 61% of units met or exceeded Quartile sales range $268,773 to $868,153; quartile median gross sales $721,647. | Bottom quartile (4th) Quartile avg. | $689,235 | 102 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Average gross sales — stores opened in 2024 19% of units met or exceeded Median gross sales $797,305; average gross profit $656,116 (66.93%). The percentage attaining is measured against the systemwide average of $1,268,984, not the cohort average. | Stores that opened in 2024 Average | $980,314 | 32 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross sales — stores opened in 2023 35% of units met or exceeded Median gross sales $1,104,468; average gross profit $768,892 (66.34%). | Stores that opened in 2023 Average | $1,158,993 | 26 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross sales — stores opened in 2022 32% of units met or exceeded Median gross sales $1,120,721; average gross profit $764,014 (67.18%). | Stores that opened in 2022 Average | $1,137,184 | 25 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross sales — stores opened in 2021 46% of units met or exceeded Median gross sales $1,213,415; average gross profit $866,377 (66.89%). | Stores that opened in 2021 Average | $1,295,268 | 13 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross sales — stores opened in 2020 40% of units met or exceeded Median gross sales $1,031,363; average gross profit $752,813 (67.19%). | Stores that opened in 2020 Average | $1,120,378 | 25 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross sales — stores opened 2019 or earlier 47% of units met or exceeded Median gross sales $1,221,480; average gross profit $889,188 (66.64%). This cohort is 287 of the 408 reporting stores. | Stores that opened in 2019 and prior years Average | $1,334,370 | 287 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Share of reporting stores with gross sales of $250,001 to $500,000 13 stores; band average $396,736; band median $407,172. No store fell below $250,000. | System (U.S. and Canada, same owner full year) % of units | 3.19% | 13 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Share of reporting stores with gross sales of $500,001 to $1,000,000 127 stores; band average $790,934; band median $799,492. | System (U.S. and Canada, same owner full year) % of units | 31.13% | 127 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Share of reporting stores with gross sales of $1,000,001 to $2,000,000 232 stores; band average $1,390,122; band median $1,346,909. | System (U.S. and Canada, same owner full year) % of units | 56.86% | 232 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Share of reporting stores with gross sales of $2,000,001 to $3,000,000 29 stores; band average $2,289,553; band median $2,288,030. | System (U.S. and Canada, same owner full year) % of units | 7.11% | 29 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Share of reporting stores with gross sales above $3,000,000 7 stores; band average $3,319,126; band median $3,325,880. | System (U.S. and Canada, same owner full year) % of units | 1.72% | 7 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Average gross profit (gross sales less cost of goods sold, before all operating expenses) Cost of goods sold includes freight and shrinkage. Winmark states this figure reflects no expense other than cost of goods sold, so rent, payroll, royalties, advertising and all other operating costs are still to be deducted. 175 of 408 stores attained or exceeded it. | System (U.S. and Canada, same owner full year) Average | $846,489 | 408 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Median gross profit | System (U.S. and Canada, same owner full year) Median | $784,890 | 408 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross profit as a percentage of gross sales Gross margin before operating expenses; not a net margin. | System (U.S. and Canada, same owner full year) Average | 66.71% | 408 | FY2025 (ended Dec 27, 2025) | FDD p.43 |
| Average gross profit — top quartile Gross sales less cost of goods sold only; 66.34% of quartile gross sales. Quartile median gross profit $1,242,369. | Top quartile (1st) Quartile avg. | $1,333,209 | 102 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
| Average gross profit — bottom quartile Gross sales less cost of goods sold only; 67.29% of quartile gross sales. Quartile median gross profit $490,226. | Bottom quartile (4th) Quartile avg. | $463,818 | 102 | FY2025 (ended Dec 27, 2025) | FDD p.44 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal yearView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 406 | 11 | 1 | 0 | 0 | 0 | 416 | 18 | 0 |
| 2024 | 416 | 16 | 1 | 1 | 0 | 0 | 430 | 19 | 0 |
| 2025 | 430 | 17 | 6 | 0 | 0 | 0 | 441 | 15 | 0 |
Disclosed 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child), Item 20, Tables 1–3 (PDF p. 45). All figures recorded here are the combined United States and Canada totals, because Table Number 1 reports only combined totals and gives no U.S.-only split; using the combined rows keeps Tables 1, 2, 3 and 5 consistent with each other and with the Item 19 population. The U.S.-only rows of Table Number 3 are: 2023 352 to 359, 2024 359 to 369, 2025 369 to 378; U.S.-only transfers were 18, 17 and 14; U.S.-only projected openings are 25. Canada grew from 54 to 63 franchised stores over the three years. All three tables foot: start plus openings less terminations and non-renewals equals the year-end count in each year, and Table 1 and Table 3 agree on every year-end. There were no reacquisitions by the franchisor, no closures for other reasons, and no company-owned stores in any of the three years. Terminations rose to 6 in 2025 from 1 in 2023 and 1 in 2024. In Table Number 2, the first Georgia row is labeled 2022 where the surrounding rows read 2023; the state column totals still foot to the disclosed annual totals, so this appears to be a typographical error in the document.
Source data notes (5) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [D/minor] Tables 2, 3 and 5 vs Table 1: Tables 2, 3 and 5 each print two subtotal rows, "TOTAL U.S. ONLY" and "TOTAL U.S. AND CANADA" (Canada: 57 / 61 / 63 stores at the 2023-2025 year ends), while Table 1 (Systemwide Store Summary) prints only one undifferentiated set of totals. Pass A read the combined rows, Pass B read the U.S.-only rows; that single choice generates every remaining field conflict (Table 3 status, Table 2 transfers, Table 5 projections). — Legitimate table-definition difference, not an error: the FDD deliberately discloses both populations and labels each. The combined U.S.+Canada rows are the correct ones for this record. Table 1's franchised end-of-year counts are 416 / 430 / 441, which equal Table 3's TOTAL U.S. AND CANADA row exactly and not the U.S.-only row (359 / 369 / 378), so Table 1 is itself a combined table. Item 19 states its results come from "408 of the 409 franchised Once Upon A Child Stores located in the United States and Canada" and are "a subset of the 441 ... Stores in the United States and Canada". Both corroborating anchors are therefore U.S.+Canada, and /units/franchised (441) reconciles to /item20/franchised_status/2/end only on the combined basis. Reading Table 3's U.S.-only row while /units/* comes
- [C/minor] Table 2 2023: In the Transfers table the Georgia block's first year is printed as "2022" where every other state block reads "2023": "Georgia 2022 0 / 2024 2 / 2025 0" against, e.g., "Florida 2023 1 / 2024 2 / 2025 2". Table 2's stated coverage is "For Years 2023 to 2025", so no Georgia figure is labelled for FY2023. — A genuine typographical inconsistency in the printed document, with no numerical effect. Recomputed here: taking the mislabelled row at its printed value of 0, the U.S. state rows sum to exactly 18 (2023), 17 (2024) and 14 (2025), matching the printed TOTAL U.S. ONLY row; adding Canada (0 / 2 / 1) reproduces the printed TOTAL U.S. AND CANADA of 18 / 19 / 15. The printed totals are therefore corroborated by the state detail and no field value changes.
- [D/minor] Table 5 2026: In Table 5 the "Projected New Franchised Stores in the Next Fiscal Year" column is identical to the "Franchise Agreements Signed But Store Not Opened" column in every single state row and in both totals (25 U.S., 29 U.S.+Canada), so signed_not_open and projected_openings_next_year are the same number by construction rather than by coincidence. — Definitional, not an error: Winmark's projection is the signed backlog restated, implying every signed agreement opens within the next fiscal year. Both fields are recorded at 29 from the same TOTAL U.S. AND CANADA row and are not independent evidence of each other. Any derived growth forecast should treat the projection as a backlog, not a forecast.
- [D/minor] Table 5 vs Table 3 2026: The projected openings (25 U.S. / 29 U.S.+Canada) exceed each of the last three years' actual openings from Table 3 (8 / 12 / 15 U.S.; 11 / 16 / 17 U.S.+Canada), so the projection sits roughly 70% above the most recent year's actual run rate. — Not a document defect — the two tables measure different things (a point-in-time signed backlog as of December 27, 2025 versus completed openings), and Table 5 is expressly a projection. Recorded as a plausibility caution: any editorial use of projected openings should present it next to the 11 / 16 / 17 actual-opening trend rather than as an expected outcome.
- [C/minor] Item 19 footnote (7) 2025: Footnote (7) to the Once Upon A Child Sales Range table reads "As reported by Music Go Round® franchisees to Winmark" (physical page 43) — the wrong Winmark brand for this FDD. Pass B flagged it; confirmed in the source. — A genuine source-document error, evidently copy/pasted from Winmark's Music Go Round FDD. The data the footnote is attached to is plainly Once Upon A Child's: the sales range 268,773 - 3,660,164 matches the Once Upon A Child quartile table, and the surrounding text repeatedly names 408 of 409 Once Upon A Child stores. Affects only the stated provenance of the Item 19 sales-range column, not any Item 20 total or derived metric; no field value changes. Worth a footnote in the record's Item 19 caveats.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child)
- Document
- FDD 2026, issued 2026-03-16
- Item
- Item 15
- Page
- PDF p. 36
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640338
you must be the on-site owner/operator and personally manage the Store unless you receive Winmark's prior consent
An individual franchisee must be the on-site owner/operator and personally manage the store unless Winmark consents in advance to delegation. A franchisee operating more than one store may delegate management of the additional stores to managers, whom Winmark may require to attend the second training session. Outside employment is not prohibited, but the franchisee's primary job responsibility must be operating the store. For a corporate or partnership franchisee, one individual must hold at least 50% of the equity and voting interest and is obligated to personally manage and operate the store.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
An individual franchisee must be the on-site owner/operator and personally manage the store unless Winmark consents in advance to delegation. A franchisee operating more than one store may delegate management of the additional stores to managers, whom Winmark may require to attend the second training session. Outside employment is not prohibited, but the franchisee's primary job responsibility must be operating the store. For a corporate or partnership franchisee, one individual must hold at least 50% of the equity and voting interest and is obligated to personally manage and operate the store. An individual franchisee must be the on-site owner/operator and personally manage the store unless Winmark consents in advance to delegation. A franchisee operating more than one store may delegate management of the additional stores to managers, whom Winmark may require to attend the second training session. Outside employment is not prohibited, but the franchisee's primary job responsibility must be operating the store. For a corporate or partnership franchisee, one individual must hold at least 50% of the equity and voting interest and is obligated to personally manage and operate the store. |
|---|---|
| Initial training | A two-part mandatory program held at Winmark's training center in Minneapolis and through online sessions, offered about 12 times a year. Resale University 101 runs 4 days (20.5 classroom hours plus 7 hands-on hours) and covers real estate, business planning, legal structure and financing, store development, accounting, advertising, buying used product and product knowledge; attendees must also register for a third-party online financial management course. Resale University 201 runs at least 5 days (21 classroom hours plus 12.5 hands-on hours) and covers store operations, marketing and social media, POS training, buyer certification, employee management, loss prevention, customer service, financial and inventory management, and visual merchandising; it is taken after securing financing, signing a lease and finishing the online course. Both sessions must be completed to Winmark's satisfaction before the store may open. Winmark charges no fee for training, but travel, lodging and the online course (currently $395) are the franchisee's cost; Item 7 budgets for two people attending. Disclosed
|
| Multi-unit / development options | There is no formal area development or multi-unit agreement described. Additional stores are bought one at a time under separate franchise agreements. An existing Once Upon A Child franchisee, or a franchisee of another Winmark brand, who has been a Winmark franchisee for at least 12 months and is opening an additional store must sign an Additional Store Addendum; Winmark may waive the 12-month requirement at its discretion. The initial franchise fee for a second or subsequent store, or for an existing franchisee of another Winmark brand, is $15,000 instead of $25,000. Item 12 states Winmark grants no options or rights of first refusal to acquire additional franchises within a territory. Disclosed
|
| Territory (Item 12) | Franchisees receive an Exclusive Territory defined by computer-modeled mapping using population density, average household income and consumer traffic patterns, typically a 3 to 5 mile radius around the store. In metropolitan areas over 250,000 people the territory generally has a minimum population of 75,000 to 100,000; elsewhere a minimum of 50,000. Winmark will not open or franchise another Once Upon A Child store at a physical location inside the territory, and no minimum sales volume or market penetration is required to keep it. Protection is limited: Winmark reserves the right to distribute products through alternative channels including the internet using the trademarks inside the territory (subject to those activities providing some benefit to franchisees), and to operate businesses selling similar products under different trademarks inside the territory. Winmark and other franchisees may advertise into the territory and serve customers who live there without compensating the franchisee, and the franchisee may not use the internet, catalog, telemarketing or other direct marketing without authorization. Relocation requires Winmark's prior written consent. Disclosed
|
| Initial term | 10 years Disclosed
The Software License Agreement is coterminous with the franchise agreement. |
| Renewal | Renewable for additional 10-year periods if renewal requirements are met: advance written notice, signing the then-current franchise agreement, paying the $10,000 renewal fee, remodeling, meeting all current standards, securing an extension of the lease, and having complied with the agreement during the term. Item 17 states the renewal agreement may contain materially different terms and conditions from the original. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: None disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | None disclosed Disclosed Item 3 states that no litigation is required to be disclosed. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy information is required to be disclosed. |
| Personal guaranty | Required Disclosed
Every individual owning 10% or more of the franchisee entity is a principal owner, and all principal owners and their spouses must sign the Personal Guaranty attached to the franchise agreement, agreeing to discharge all of the franchisee's obligations to Winmark. The document's state-mandated special risks page separately highlights that a spouse with no ownership interest becomes liable for all financial obligations, putting marital and personal assets at risk. |
| Non-compete | During the term, the franchisee, guarantors and owners may not be directly or indirectly involved in any resale retail business buying or selling used clothing and accessories, or in any retail business selling new or used children's apparel, toys, equipment, furniture or accessories, other than the franchised store, without Winmark's written consent. After termination or expiry the same restriction applies for 2 years, in person or online, at the former location, at any Once Upon A Child store, or within or marketing into a 10-mile radius of the store or any other Once Upon A Child store. Breach extends the restricted period by the time a competing business was operated. Both covenants are stated to be subject to state law. Disclosed
|
| Transfer restrictions | Transfer includes any transfer of the store or its assets, of the franchisee's interest in the franchise agreement, or any controlling ownership change; the Software License Agreement cannot be transferred at all. Winmark must consent but states it will not unreasonably withhold consent. Conditions include the buyer qualifying and completing training, payment of the $10,000 transfer fee, the seller settling all amounts owed and being in good standing, the buyer assuming the existing agreement or signing the then-current one at Winmark's option, Winmark judging that the purchase price and terms will not adversely affect the buyer's operation of the store, subordination of any seller financing to fees owed to Winmark, and the seller's compliance with post-termination obligations including the non-compete. Winmark holds a right of first refusal and can match any offer for the business. Transfers of stock among existing shareholders, and transfers to a spouse or child on death or disability, are exempt from the right of first refusal and, in the spouse or child case, from the transfer fee. Disclosed
|
| Termination / non-renewal | Winmark may terminate only on default; there is no termination without cause. Curable defaults carry a 30-day cure period and include breach of any material provision, non-payment of amounts owed to Winmark or an advertising cooperative, failure to meet operating standards, an assignment of assets to creditors, and expiry or termination of the store lease. Non-curable defaults include failure to open within 12 months of signing, insolvency, felony conviction, closing the store for 7 consecutive days without consent, abandonment, falsifying information, repeated defaults even if cured, frequent or severe customer or employee complaints, failure to cooperate with an audit, and breach of the in-term non-compete. A franchisee may terminate only if Winmark fails to cure a material default within 30 days of written notice. On termination or non-renewal the franchisee must pay all amounts due Winmark including the fees that would have been owed through the end of the remaining term, return the manuals and software, disconnect or assign the telephone number, redecorate the premises and remove all trademarked signage. Disclosed
|
| Supplier restrictions (Item 8) | The proprietary software must be licensed from Winmark and the POS computer hardware must be purchased from Winmark, which adds an approximately 4% handling fee on hardware but states it does not mark up hardware cost. Exterior and interior signs, carpet and flooring must come from Winmark-designated approved suppliers, as must broadcast media placement and online advertising for pre-opening and first-year marketing, and accounting and bookkeeping services. Inventory itself is largely unrestricted: Winmark approves product categories rather than specific items, maintains no approved-supplier list or approval criteria for inventory, and franchisees may buy within an approved category from any legal source. Franchisees and their owners may not act as a vendor or supplier to their own or any other Once Upon A Child store. Winmark estimates that goods and services meeting its standards represent roughly 45% to 55% of the cost to establish a store and 45% to 65% of the cost to operate it, and separately that the software and hardware alone are under 7% of the cost to establish a store. In its last fiscal year Winmark derived $3,654,540 in revenue across all its brands from sales of products, equipment and other items subject to its standards, less than 5% of its total revenue of $86,055,700; revenue from hardware, software and software licensing to Once Upon A Child franchisees alone was $1,083,190. Winmark states it receives no supplier fees but may receive a rebate of about 40% of billed revenue, roughly $295,000 a year, from the Constant Contact marketing vendor. Disclosed
|
| Dispute resolution | Except for certain claims, all disputes under the franchise agreement must be arbitrated in Minneapolis, Minnesota. If litigation is permitted, the sole forum is the state or federal courts of Minnesota, though Winmark may seek injunctive relief where the store is located or wherever the franchisee is subject to personal jurisdiction. Choice of law for the franchise agreement is the state where the store is located; the Software License Agreement is governed by Minnesota law and caps Winmark's liability for software or service claims at the lesser of actual loss or the initial software fee paid. All of these provisions are stated to be subject to applicable state law, and the document's special risks page flags the out-of-state arbitration requirement. Disclosed
|
- The document's state-mandated Special Risks page states that the franchisor's financial condition, as reflected in its Item 21 financial statements, calls into question its financial ability to provide services and support to franchisees.
- The same page flags that minimum advertising and other payments are owed regardless of sales levels, and that inability to make them may result in termination.
- Advertising obligations are substantial and largely non-discretionary: at least 5% of Gross Sales on cooperative and local advertising, at least 0.5% of Gross Sales to any cooperative regardless of a cooperative vote, plus a $1,500 annual marketing fee. Winmark may raise the combined minimum to 6% and divert up to 3% into a fund it controls.
- The $295 monthly software fee is subject to a compounding 10% annual increase, and any future technology fee would carry the same escalator.
- Failure to open the store within 12 months of signing the franchise agreement is a non-curable default.
- On termination or non-renewal the franchisee must pay the fees that would have been owed through the end of the remaining term.
- Modernization can be required on notice, though not more often than once every five years, and Winmark states it cannot estimate the cost.
- Winmark franchises four other resale concepts (Play It Again Sports, Music Go Round, Plato's Closet, Style Encore) and reserves the right to operate businesses selling similar products under different trademarks inside a franchisee's exclusive territory.
- Inventory is sourced largely by buying used goods from the public, and Item 6 note 12 puts quarterly replenishment at $65,000 to $80,000, a working capital demand not included in the Item 7 additional funds line.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $689,235 | $1,268,984 | $1,459,332 |
| − Cost of goods / supplies assumption | $310,156 | $571,043 | $656,699 |
| − Payroll (excl. owner) assumption | $124,062 | $228,417 | $262,680 |
| − Occupancy assumption | $62,031 | $114,209 | $131,340 |
| − Other operating expenses assumption | $62,031 | $114,209 | $131,340 |
| − Continuing Fee disclosed 5% of gross sales = $63,449 |
$34,462 | $63,449 | $72,967 |
| − Marketing Fee disclosed $1,500 per year |
$1,500 | $1,500 | $1,500 |
| − Local Marketing Expenses disclosed 5% of gross sales = $63,449 |
$34,462 | $63,449 | $72,967 |
| − Software Fee disclosed $295/month × 12 = $3,540 |
$3,540 | $3,540 | $3,540 |
| = Modeled operating result before the items below (EBITDA-style) | $56,991 | $109,169 | $126,300 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | −$3,009 | $49,169 | $66,300 |
| − Illustrative debt service assumption | $47,696 | $47,696 | $47,696 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$50,705 | $1,473 | $18,604 |
| Modeled operating margin | 8.3% | 8.6% | 8.7% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 1 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Remodeling Expenses (Item 6, p. 13) — Winmark expressly states it cannot estimate the cost; scope ranges from repainting to complete refurbishment including fixtures, sign supplies, equipment and the POS System. No figure can be modeled without an outside assumption.
Overlap control: Cooperative Advertising is counted within “local-marketing-expenses” — excluded to avoid double counting.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child) · issued 2026-03-16. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Winmark Corporation (Once Upon A Child) Registry file 640338 · 184 pages Cover page reads 'Issuance Date: March 16, 2026'; running footer reads 'OUAC – 3/2026'. Wisconsin registration effective 3/16/2026, status Registered. Winmark Corporation franchises four other resale brands (Play It Again Sports, Music Go Round, Plato's Closet, Style Encore) under separate disclosure documents; this record covers only Once Upon A Child. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-03-16 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 74 of 77 material fields confirmed (69 with the exact page citation re-confirmed), 0 corrected, 0 unresolved, 3 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 27, 2025). See how we use AI and verify data.
Fields flagged as uncertain (5)
- investment.franchise_fee_low / investment.franchise_fee_high — recorded as the sum of the two mandatory components Item 5 calls the 'Initial Fees': the $25,000 initial franchise fee and the $23,200 to $30,900 POS system and proprietary software cost, both payable to Winmark before opening. The cover page confirms the sum ('$48,200 to $55,900, which must be paid to us'). A reader looking only for the initial franchise fee line should read $25,000.
- item20.us_only — set to false. Table Number 1 reports only combined United States and Canada totals and provides no U.S.-only split, so all Item 20 arrays use the combined rows for internal consistency. U.S.-only figures from Table Number 3 are recorded in item20.notes and units.note.
- item19.population_share_of_system — 92.5 is our arithmetic (408 reporting stores divided by the 441 stores open at fiscal year end), not a figure Winmark states.
- fees.technology — Item 6 lists a 'Technology Fee' currently set at $0 and, separately, a $295 per month Software Fee. The recorded value is the Software Fee because that is the recurring technology charge actually payable; the $0 technology fee is recorded in fees.other_recurring.
- fees.ad_fund — recorded as the $1,500 per year Marketing Fee, the only brand marketing amount currently payable to Winmark. The North American Ad Fund of up to 3% of Gross Sales described in Item 6 note 7 is not currently imposed and is described in the note rather than given a value.
Extraction notes (7)
- Winmark Corporation franchises five brands; this record covers only Once Upon A Child. Item 20 note 1 confirms the outlet tables exclude Winmark's other franchise programs, and Item 19 covers only Once Upon A Child stores. Item 8's $3,654,540 supplier revenue figure, by contrast, is Winmark-wide across all brands; the Once Upon A Child-only figure of $1,083,190 is also disclosed and recorded.
- Item 19 and Item 20 both combine United States and Canadian stores. Item 19's population of 408 is drawn from the 441 U.S. and Canada stores open at December 27, 2025.
- Item 19 footnote 7, attached to the 'Sales Range' column, reads 'As reported by Music Go Round franchisees to Winmark'. The range values are consistent with the Once Upon A Child quartile table, so this reads as a labeling error carried over from another Winmark brand rather than data from a different system. Recorded in item19.caveats.
- In Item 20 Table Number 2, the first Georgia row is labeled 2022 where the surrounding state rows read 2023. The state entries still sum to the disclosed annual totals of 18, 17 and 14 for the United States, so this appears to be a typographical error.
- All Item 7 line items foot exactly to the disclosed totals of $355,700 and $485,900. All Item 20 tables foot, and Table 1 and Table 3 agree on every year-end count.
- units.total and units.franchised are both 441 because there are no company-owned stores; this is not a duplication.
- No minimum liquidity or net worth requirement appears on the cover page or in Items 1, 5, 7 or 15, so both are recorded as not_disclosed rather than inferred from the investment range.
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