Once Upon a Child is one of the most recognized children's resale franchise brands in North America, operated under the Winmark Corporation umbrella. With a business model built on buying and reselling gently used kids' clothing, toys, and gear, it attracts entrepreneurs looking for a proven, low-inventory-cost concept with consistent community demand. If you are exploring the Once Upon a Child franchise cost and wondering how to finance your investment, this guide covers everything you need to know.
From SBA loans to unsecured working capital, Crestmont Capital helps franchise owners across the country secure the financing they need to open and grow. This guide breaks down startup costs, financing options, qualification requirements, and the step-by-step process to get funded.
Once Upon a Child was founded in 1985 by Lynn and Dennis Blum in Columbus, Ohio. Winmark Corporation acquired the brand in 1993 and has grown it into one of the most stable resale franchise concepts in the country. As of 2024, there are more than 400 Once Upon a Child locations operating across the United States and Canada.
The brand operates on a simple, repeatable concept: the store buys gently used children's items directly from local families and resells them at a fraction of retail prices. This model creates two customer touchpoints, the sellers looking to turn used items into cash and the buyers seeking affordable children's merchandise. The result is high foot traffic, strong community loyalty, and a merchandise acquisition model that eliminates the need for large wholesale inventory orders.
Winmark Corporation also operates Play It Again Sports, Style Encore, Music Go Round, and Plato's Closet under the same franchise model. The company has a long track record of franchise support and operational consistency.
Understanding the Once Upon a Child franchise cost is the first step in planning your financing. Winmark franchises are known for being relatively accessible compared to full-service retail concepts. The total investment varies based on location, lease terms, and buildout requirements.
Based on Winmark's most recent Franchise Disclosure Document (FDD), the estimated total investment to open a Once Upon a Child location ranges from approximately $276,100 to $388,600. This includes all startup costs from the franchise fee to initial inventory and working capital reserves.
| Cost Category | Estimated Range |
|---|---|
| Franchise Fee | $25,000 |
| Leasehold Improvements / Build-Out | $85,000 - $150,000 |
| Fixtures, Equipment, and Technology | $60,000 - $90,000 |
| Initial Inventory (Buy Power) | $45,000 - $65,000 |
| Training and Travel | $3,500 - $8,000 |
| Grand Opening Marketing | $5,000 - $10,000 |
| Working Capital (3-6 months) | $30,000 - $60,000 |
| Total Estimated Investment | $276,100 - $388,600 |
Note: These figures are estimates. Actual costs vary by market, lease negotiations, and local labor and material costs. Always review the current FDD with a qualified franchise attorney before making any investment decision.
In addition to startup costs, budgeting for ongoing fees is important when evaluating the financial picture of your franchise:
Understanding these fees matters for your cash flow projections and your lender's debt service coverage ratio (DSCR) analysis, which determines how much financing you can qualify for.
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Apply NowMost Once Upon a Child franchise owners do not pay the full investment out of pocket. Franchise financing has become increasingly accessible in recent years, with multiple loan products available to help entrepreneurs launch and grow. The best option depends on your credit profile, available collateral, prior business experience, and whether you are a first-time or multi-unit franchisee.
Here is an overview of the primary financing options available to Once Upon a Child franchise owners:
The SBA 7(a) loan program is the most popular option for franchise financing in the United States. These loans carry government-backed guarantees, which allows lenders to offer competitive rates and longer repayment terms. For a Once Upon a Child investment in the $276,100 to $388,600 range, an SBA 7(a) loan is often the right fit.
Learn more about SBA loan options at Crestmont Capital, including eligibility requirements and how to apply.
The SBA 504 program is designed for real estate and major equipment purchases. If you are purchasing the building where your franchise will operate, the 504 program may provide long-term, fixed-rate financing at favorable terms.
For franchisees with strong credit and collateral, conventional term loans can provide fast, flexible funding without the documentation requirements of SBA programs. These loans are available through banks, credit unions, and online lenders.
A business line of credit is ideal for managing the day-to-day cash flow needs of your franchise, such as buying additional inventory during peak seasons or covering payroll during slower periods. It provides flexibility that a term loan does not.
The fixtures, shelving, point-of-sale systems, and tagging equipment required to open a Once Upon a Child location can be financed separately through equipment financing. This keeps your other loan proceeds available for working capital and build-out.
If you need bridge financing or supplemental capital before or shortly after opening, unsecured working capital loans can provide fast access to cash without requiring collateral. These are particularly useful during your ramp-up period.
SBA loans remain the gold standard for franchise financing. Here is a deeper look at how the SBA 7(a) program works for Once Upon a Child investors.
Winmark Corporation franchises have historically been eligible for SBA lending. The SBA maintains a Franchise Registry that pre-screens franchise agreements for eligibility. Franchises listed on the registry require less due diligence from lenders, speeding up the approval process. Once Upon a Child's parent company, Winmark, has been a financially stable, publicly traded company for decades, which provides lenders with confidence in the franchise system.
To qualify for an SBA 7(a) loan to open your Once Upon a Child franchise, lenders typically require:
For a more detailed breakdown of the SBA loan process, review our guide on SBA loans at Crestmont Capital.
Not every franchisee qualifies for or prefers SBA financing. There are several effective alternatives worth considering.
ROBS allows you to use funds from your 401(k) or IRA to invest in your franchise without incurring early withdrawal penalties or tax liability. This strategy requires working with a ROBS specialist and is best suited for franchisees with substantial retirement savings who want to minimize debt service.
If you own a home with significant equity, a HELOC can provide low-cost capital for your franchise investment. Interest rates on HELOCs are typically lower than business loans, though this approach puts your home at risk if the business underperforms.
Winmark Corporation does not typically offer in-house financing, but the company has relationships with preferred lenders who understand the Winmark franchise system. Working with a preferred lender can accelerate the approval process and result in more favorable terms.
Federal and state grants are available for certain categories of business owners, including veterans, women, and minority entrepreneurs. While grants do not need to be repaid, they are competitive and may not cover the full investment. Consider grants as supplemental funding rather than primary capital.
According to the U.S. Small Business Administration, small businesses that combine grant funding with commercial loans tend to have stronger opening financial positions.
If your business model includes owning the property where your franchise operates, commercial real estate financing through Crestmont Capital can help you acquire and improve the property with long-term financing.
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Get a Free ConsultationQualifying for a franchise loan requires meeting both the franchisor's requirements (set by Winmark) and the lender's underwriting criteria. Understanding both sides of the equation puts you in a stronger position to secure funding.
According to publicly available FDD disclosures and franchise information, Winmark typically looks for:
Lenders evaluating your Once Upon a Child franchise loan application will examine:
Credit Score: Most SBA-approved lenders require a minimum FICO score of 680. Higher scores (720+) improve your rate and approval odds significantly. If your credit score needs improvement, review our guide on building business credit before applying.
Debt-to-Income Ratio: Lenders want to see that your personal income comfortably covers existing debt obligations plus new loan payments. A DTI ratio below 43% is preferred.
Business Plan: A well-developed business plan that includes market analysis, competitive positioning, staffing plans, and 3-year financial projections is essential for SBA loans and strongly recommended for all franchise financing applications.
Equity Injection: Most lenders require you to contribute 10-30% of the total project cost from personal funds or other verifiable equity sources. For a $350,000 investment, this means having $35,000 to $105,000 ready to deploy.
Industry Experience: Prior retail, management, or franchise experience is not required but will strengthen your application and potentially improve your terms.
According to Forbes Finance Council, franchise borrowers who work with lenders experienced in franchise lending typically receive faster approvals and better terms than those who apply through general-purpose commercial banks.
*Investment ranges based on Winmark FDD disclosures. Actual costs vary by market.
Applying for franchise financing is a structured process. Here is what to expect when working with Crestmont Capital to fund your Once Upon a Child location.
Begin with a free pre-qualification review where a Crestmont Capital advisor will assess your credit profile, available equity, and business history. This takes approximately 15-30 minutes and has no impact on your credit score.
Based on your pre-qualification, your advisor will recommend the most appropriate loan product, whether an SBA 7(a) loan, conventional term loan, equipment financing, or a combination of products.
You will complete a formal loan application and submit supporting documentation. For SBA loans, this typically includes:
Once your file is complete, it moves to underwriting. SBA loan underwriting typically takes 2-6 weeks. Conventional loans can close in as few as 5-10 business days with all documentation in order.
At closing, you will review and sign loan documents. Funds are typically disbursed within 1-3 business days of closing. For construction or build-out loans, funds may be disbursed in tranches as work is completed.
Explore all of Crestmont Capital's small business financing options and see how we support franchise owners nationwide.
A few strategic steps can significantly improve your chances of approval and help you secure the best possible terms:
Pull your credit reports from all three bureaus (Equifax, Experian, TransUnion) and dispute any errors. Pay down revolving credit balances to below 30% utilization. Even a 20-point credit score improvement can result in meaningfully better loan terms.
Lenders fund businesses, not just ideas. Your business plan should include demographic analysis of your target market, a competitive analysis of other resale stores in your area, a staffing and operational plan, and realistic financial projections for years one through three.
Lenders need to trace and verify the source of your equity injection. Make sure funds come from documented, seasoned accounts (at least 2 months in your bank). Large, unexplained cash deposits raise flags during underwriting.
Not all lenders understand franchise financing. Working with a lender like Crestmont Capital that has experience with franchise transactions will result in a smoother process and better outcomes.
Lenders will ask about the franchise agreement and disclosure document. Demonstrating that you have reviewed the FDD with an attorney and understand the financial obligations shows lenders you are prepared and serious.
Combining an SBA loan with personal retirement funds (via ROBS), a HELOC, or equipment financing can reduce the total amount you need to borrow, improve your debt service coverage, and increase your approval probability.
According to CNBC's franchise financing coverage, franchisees who work with multiple funding products and experienced advisors have higher success rates and lower average interest costs than those who rely on a single loan source.
You can also learn from other franchise owners' financing journeys by reading our guide on how other franchisees have financed their locations, such as our Sola Salon Studios Franchise Loan Guide and our Budget Blinds Franchise Loan Guide.
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Apply for Franchise FinancingThe children's resale market has demonstrated consistent resilience even during economic downturns. Parents consistently seek value when buying clothing and gear for growing children who outgrow items quickly. The sustainable consumption trend has further accelerated the resale market's growth.
According to U.S. Census Bureau retail trade data, the secondhand and thrift retail market has grown at faster rates than traditional retail in each of the past five years. Children's items represent one of the strongest sub-categories due to the frequency of size changes and the inherently short useful life of many items.
Once Upon a Child's community-based model, where local families sell and shop, creates a natural marketing loop that reduces advertising costs compared to traditional retail. The brand also benefits from seasonal peaks around back-to-school, winter holidays, and spring that drive both buying and selling activity.
One of the most common reasons franchise businesses struggle in their first two years is inadequate cash flow planning. Understanding your startup cash needs and ongoing working capital requirements is essential before you commit to any financing.
Before you open your doors, you will need cash for deposits, build-out expenses, equipment purchases, initial inventory buying capital, training travel, and operating expenses during the ramp-up period before revenue begins. Lenders typically want to see that you have at least three to six months of operating expenses in reserve.
In the Once Upon a Child model, your primary operating expense after payroll is inventory buying. Unlike traditional retail, you are purchasing inventory directly from community sellers on an ongoing basis. This requires consistent cash availability, not just a one-time purchase.
A business line of credit can serve as a flexible cash management tool, allowing you to draw funds when inventory buying opportunities arise and repay when sales generate cash.
Winmark's FDD Item 19 discloses financial performance representations for existing franchisees. Reviewing this data provides realistic benchmarks for your revenue projections. Average store volumes vary by market size, location quality, and operator experience, which is why FDD Item 19 data should inform, but not solely drive, your financial plan.
The total estimated investment to open a Once Upon a Child franchise ranges from approximately $276,100 to $388,600, which includes the $25,000 franchise fee, leasehold improvements, equipment, initial inventory, training, and working capital reserves. Actual costs vary by market and location specifics.
Can I get an SBA loan for a Once Upon a Child franchise?Yes. Once Upon a Child is a Winmark Corporation franchise, and Winmark has historically worked with SBA-approved lenders. SBA 7(a) loans are a popular choice for Winmark franchise financing because they offer competitive rates, longer repayment terms, and lower down payment requirements than conventional loans. Working with an SBA-experienced lender like Crestmont Capital can streamline the process.
What credit score do I need to get a Once Upon a Child franchise loan?Most SBA-approved lenders require a minimum personal credit score of 680. Conventional and alternative lenders may work with scores as low as 620-650, though rates and terms will be less favorable. A credit score of 720+ typically results in the best available rates and terms for franchise financing.
How much money do I need to put down for a Once Upon a Child franchise loan?Most lenders require a personal equity injection of 10-30% of the total project cost. For a $350,000 total investment, this means having $35,000 to $105,000 available from personal savings, retirement funds (via ROBS), or other verified equity sources. Winmark independently requires liquid capital of $75,000 to $100,000 as a franchise qualification standard.
Does Winmark Corporation offer financing for Once Upon a Child franchises?Winmark Corporation does not typically offer direct in-house financing. However, the company may provide introductions to preferred lenders familiar with the Winmark franchise system. Working with a Winmark-preferred lender or a franchise-experienced lender like Crestmont Capital is recommended for the most efficient financing process.
What is the royalty fee for Once Upon a Child?Once Upon a Child charges a royalty fee of approximately 4% of gross sales, plus an advertising/technology fee of approximately 2% of gross sales. These ongoing fees should be factored into your financial projections and cash flow planning when determining how much financing you can comfortably service.
How long does it take to get approved for a franchise loan?SBA loan approvals typically take 3-8 weeks from the time a complete application is submitted. Conventional business loans can close in 5-15 business days. The speed of approval depends heavily on how quickly you can gather required documentation and whether your application is complete at submission. Working with an experienced franchise lender like Crestmont Capital can significantly reduce your approval timeline.
Can I use retirement funds to finance a Once Upon a Child franchise?Yes. The ROBS (Rollover for Business Startups) strategy allows you to use 401(k) or IRA funds to invest in your franchise without incurring early withdrawal penalties or immediate tax liability. ROBS is a legitimate IRS-recognized structure that requires working with a ROBS specialist. Many franchise owners use ROBS to meet the equity injection requirement without depleting their cash savings.
Can I finance equipment separately for my Once Upon a Child store?Yes. Equipment financing allows you to separately finance fixtures, shelving, POS systems, tagging equipment, and other tangible assets. This approach preserves your SBA loan or working capital funds for other uses like build-out and inventory buying. Crestmont Capital offers equipment financing specifically designed for franchise and retail businesses.
What documents do I need for a Once Upon a Child franchise loan application?For a standard SBA 7(a) franchise loan application, you will typically need: 3 years of personal tax returns, 3 months of bank statements, a personal financial statement, a copy of the franchise agreement, a business plan with financial projections, a completed SBA Form 1919, and a professional resume. Crestmont Capital provides a detailed document checklist to streamline the process for you.
Do I need prior retail experience to qualify for a Once Upon a Child franchise loan?Prior retail or management experience is not strictly required to qualify for a franchise loan, but it strengthens your application. Lenders and the franchisor both view relevant experience favorably because it suggests you are better prepared to manage operations. If you lack retail experience, emphasizing transferable business management skills and your business plan will be especially important.
Is Once Upon a Child a good franchise investment?Once Upon a Child has a proven 30+ year track record and operates under the financially stable Winmark Corporation. The children's resale market is resilient and growing. Whether it is a "good" investment depends on your specific market, location, operator skills, and financial structure. Always review the FDD Item 19 financial performance representations and consult with current franchisees before making any investment decision.
Can I open multiple Once Upon a Child locations?Multi-unit franchising is possible with Winmark brands, but typically requires demonstrating successful operation of an initial location. Multi-unit franchisees often use a combination of SBA loans, conventional financing, and business lines of credit to fund additional locations. Crestmont Capital has experience structuring financing for multi-unit franchise expansions. Explore our commercial financing options for growing franchisees.
What is the minimum net worth required to open a Once Upon a Child franchise?Winmark typically looks for prospective franchisees with a net worth of at least $150,000, though this can vary. Net worth includes both liquid assets and equity in real estate, vehicles, retirement accounts, and other holdings. Liquid capital requirements are typically $75,000 to $100,000, separate from net worth.
What happens if my Once Upon a Child franchise loan application is denied?A loan denial is not the end of the road. Lenders are required to provide denial reasons. Common reasons include insufficient credit score, inadequate equity injection, or incomplete documentation. Many franchisees who are initially denied succeed in obtaining financing after a few months of credit improvement, additional equity accumulation, or by working with a different lender. Crestmont Capital can review denied applications and recommend paths to approval.
Is Crestmont Capital approved to make SBA loans for franchise businesses?Crestmont Capital works with a network of SBA-approved lenders and franchise financing specialists. Our team has extensive experience structuring franchise financing transactions and can connect you with the right lending partner for your Once Upon a Child investment. Start your application today to get matched with the right lender.
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Get Pre-Qualified TodayDisclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.