franchise information report - nty clothing exchange · to our franchise owners, including helping...

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FRANCHISE REPORT

NTYCLOTHINGEXCHANGE.COM

Franchise Information Report

No re-use or re-distribution of any of these materials is allowed without the express written consent of: NTY Clothing Exchange®, LLC Copyright© 2015 All Rights Reserved by NTY Clothing Exchange, LLC

AFTER READING THE INFORMATION IN THIS REPORT CONTACT:One of Our Franchising Representatives:

Direct: (952) 283-3411 | Toll-Free: (866) 261-2030, Ext 5 | [email protected]

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FRANCHISE REPORT


TABLE OF CONTENTS: NTY FRANCHISE COMPANY IS PLEASED TO ANNOUNCE: NTY CLOTHING EXCHANGE ................................................3

WHY NTY CLOTHING EXCHANGE? ............................................................................................................................3-4

TRAINING & SUPPORT .........................................................................................................................................5-6 START-UP ASSISTANCE ..........................................................................................................................................5 ONGOING ASSISTANCE ...........................................................................................................................................6

STORE FIXTURE & DESIGN VENDOR .........................................................................................................................7

BST SOFTWARE - POINT OF SALE (POS) COMPUTER SYSTEM ............................................................................ 8-9

FRANCHISE REQUIREMENTS ..................................................................................................................................10-11 FINANCIAL ASSISTANCE ............................................................................................................................. 10 ESTIMATED INITIAL INVESTMENT ................................................................................................................11

HISTORY ....................................................................................................................................................................12

MANAGEMENT TEAM ............................................................................................................................................. 13-14

6 EASY STEPS ..........................................................................................................................................................15

HOW TO LEARN MORE ..............................................................................................................................................16

GETTING STARTED ....................................................................................................................................................16

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FRANCHISE REPORT


NTY FRANCHISE COMPANY IS PLEASED TO ANNOUNCE THE NEWEST ADDITION TO ITS LINEUP OF SUCCESSFUL RESALE BRANDS: NTY CLOTHING EXCHANGENTY Clothing Exchange brings an exciting new concept to the teen and young adult resale clothing market. The experienced management team for NTY Clothing Exchange spent nearly a year researching teens and young adults and their shopping patterns, visiting stores, holding focus groups and talking directly to this group of savvy customers.

The team then took all the research, data and testimonials and began to build a store that Millenials would love to shop in. A store that appeals to all of their senses... smell, sight and sound.

NTY Clothing Exchange is available in the United States as a franchise brand of NTY Franchise Company. Call us today and learn how you can own this great business.

WHY NTY CLOTHING EXCHANGE?SUCCESSFUL BUSINESS MODEL IS WIN/WIN

Traditional retailers are now struggling in this economy and traditional retailers only run about 30% to 35% gross profit margins. NTY Clothing Exchange is a different type of clothing franchise. We are a resale store and resale clothing franchises are excelling in this economy. While delivering tremendous value on teen and young adult fashions to our customers, our established franchise store owners have attained over 60% gross profit margins!

In essence, this means that our stores have 60 cents out of every dollar sale to cover overhead/expenses before the net profit line. These are far superior gross profit margins compared to traditional retailing and clothing franchises. We have a proven business model, proprietary point-of-sale computer system, highly-effective advertising materials, training and follow-up guidance from our support staff.

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DO WHAT YOU LOVE, LOVE WHAT YOU DO

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FRANCHISE REPORT


IT’S WHAT TEENS AND YOUNG ADULTS WANT... YOU WILL TOO:

Our business creates LOYAL REPEAT CUSTOMERS who LOVE these stores for their:• Tremendous value on a wide variety of better brands, in “gently-used,” “like new” condition, at about 70%

off mall store pricing... available every day.• Great shopping experience in a well lit, organized, beautifully designed environment.• Dynamic, ever-changing inventory bargains.• RESALE business model (not consignment).• Immediacy and convenience of getting CASH on-the-Spot for selling us their fashions. (No waiting months to

get paid and no worrying about missing items as in a consignment shop.)• Opportunity to take this CASH and update their wardrobes on a regular basis – for less... a lot less!• Ability to choose 25% more in in-store credit.

THE BEST VISION IS INSIGHT

TRENDY, NOT SPENDY.

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FRANCHISE REPORT


TRAINING & SUPPORTOWNING A FRANCHISE MAY SEEM LIKE A BIG UNDERTAKING, BUT...We have a team of highly-trained and friendly support staff that can help you through the ownership process. We provide start-up assistance to our franchise owners, including helping them find the ideal location for their resale clothing franchise, assisting them with store layouts, helping them with employee training and much more. Some of the franchise training and assistance pieces we offer are listed below, so you know that when you start, you are not starting alone: NTY Clothing Exchange is there to help you from first contact, to store opening and beyond!

START-UP ASSISTANCE:

FinancialNTY Clothing Exchange helps provide you the tools that you need to develop your business plan which, based upon our past experience and your local research and input, covers the goals for sales, expenses and profit. This business planning process guides you in getting bank financing and then managing your ongoing business.

Real EstateLocation, location, location… it’s very important and our development strategy helps you in seeking quality locations. NTY Clothing Exchange stores are located in centers with high-visibility and traffic counts that meet specific demographic requirements. We provide training and assistance with site selection and standard lease terms.

Construction and DesignNTY Clothing Exchange stores are colorful, fun, clean, inviting and designed for a superior shopping experience for ALL teens and young adults, males and females. Our proven store designs can be customized to adapt to your specific site/size requirements. We provide build-out specifications, as well as sourcing of our fixtures to you at your cost.

STOP DREAMING, START DOING

Store during open to buy.

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FRANCHISE REPORT


ONGOING ASSISTANCE:

TrainingTwo separate, comprehensive training programs are provided on both pre-opening and post-opening topics – ranging from Business Plan, Financial Mangagement, and Real Estate Selection…. to opening Store Operations, Merchandising, Inventory Management and Point-of-Sale system training. NTY Clothing Exchange training manuals are included.

MerchandisingAn expert corporate support team supplies franchisees with detailed product placement diagrams and specific updated merchandising techniques.

InventoryYour store inventory comes from customers in your market area responding to the advertising and marketing materials that we provide to you. We will teach you how to buy the right quality inventory in the right quantities at the right price. This is critical to your level of success. We also teach you how to sell product. Our custom POS hardware/software system make the Buy/Sell process very easy to train new managers and staff. It will help you to manage the inventory so you can maximize your profit potential.

OperationsFranchisees receive regularly updated comprehensive operations procedures used in all NTY Clothing Exchange stores. Twenty-four hour access to the NTY Clothing Exchange extranet allows the franchisee to stay current with programs, procedures, useful tools and training manuals.

Advertising and MarketingNTY Clothing Exchange provides various forms of advertising ranging from TV, radio, social media and print, to in-store posters and point-of-sale signage. We provide materials and direction for: Public relations campaigns, local market advertising and promotions.

ResourcesFranchisees enjoy full privileges to our Extranet and to our company subsidized Annual Conference with management, vendors and field support staff. This Annual Conference, along with our 24-7 Extranet, helps our franchisees and our NTY Clothing Exchange management team to network effectively with each other to collaboratively improve your business.

THERE ARE NO WORKING HOURS FOR LEADERS

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FRANCHISE REPORT

NTYCLOTHINGEXCHANGE.COMTITLE

PROJECT

LOCATION

DATE JOB # DRAWNBY

SCALE

Not P

ublished. All rights

reserved. this drawing,

specification are the property ofF.M

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NOTE: Fixture Manufacturing Specialist, Inc. (FMS) is not a licensed Engineer or Architect. Such as this drawingcan not be used for any Engineering purposes, as Electrical, Plumbing, HVAC or any other Mechanicalspecifications. It is the Owners responsibility to hire the license Engineer or Architect to coordinate the requiredspecifications and/or codes. Fixture Manufacturing Specialist. Inc. drawings are for schematic reference andinformation only. Fixture Manufacturing Specialist, Inc takes no responsibility or liability for the information on thisdrawing.

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STORE FIXTURE & DESIGN VENDOR• A single-source provider of brand environments, displays and kiosks.• A knowledgeable staff providing personalized service.• An experienced, state-of-the-art production facility and construction

management program with an extensive supplier network to ensure a project’s timely completion.

Store in-a-box package• One-stop shopping experience: Handle ordering of fixtures, equipment,

graphics and other decor pieces.• Coordinate delivery and installation: Everything ships on one trailer,

saving you multiple shipping charges. Nationwide installation is available by their fixture experts.

• Warranty program: Fixtures come with a 1-year warranty for materials and craftsmanship and a lifetime warranty on all hardware.

Fixture Provider Highlights

WHAT MAKES THEM DIFFERENT?

• A customized project approach with a partnership mentality.• All of their services are handled in-house.• Increased project continuity and quality assurance results in

faster response and turnaround times.• Their Project Managers take on many of the day-to-day

details, freeing up your time so you can focus on promoting NTY Clothing Exchange and building your business.

• They familiarize themselves with every aspect of your business and your Franchise Disclosure Document. This helps them serve your best interests during build-out.

• The same project support team manages your account from the beginning. This ensures a smooth hand-off from the Franchisor when Franchisee build out begins.

• Over 35 years in business• 40+ franchise clients

• 100+ construction build outs annually• 300+ fixture, equipment and decor

packages produced annually.Store during open to buy. Buying inventory

from local customers to fill store.

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FRANCHISE REPORT


BST SOFTWAREPOINT OF SALE (POS) COMPUTER SYSTEM

PRODUCT BUYING MATRIX – System automation allows new employees and managers to quickly get up to speed on how to effectively buy the right store inventory at the right price.

Historical inventory data is automatically used for sales trend analysis when the store buy function is in process to help the buyer make intelligent decisions about the items being purchased.

WINDOWS BASED AND NETWORK READY – BST Software easily performs the following functions for franchisees: Fast inventory buying that builds computerized inventory with unique item numbers and automatic barcode ticketing with multiple vendor payout types.

BUILT ON A STRONG & CAPABLE DATABASE SYSTEM – BST Software can handle hundreds of thousands of transactions and maintain years of valuable statistical history without bogging down. This helps you to schedule, budget and plan effectively.

SOFTWARE UPDATES ARE TIMELY AND READILY AVAILABLE – No discs or complicated instructions are shipped to you… because it is a central database system and uses flexible software code; updates are easily completed remotely by the BST Software staff.

INSTANT ON-LINE TECH SUPPORT – The tech support team can see what you see and they can quickly analyze your in-store computer.

ACCESS TECH SUPPORT BY ANY STORE EMPLOYEE – There is no requirement that the owner make direct contact with the tech before support can take place – this dramatically speeds up curing a problem and provides better service to your store customers.

INTEGRATED, SECURE CREDIT CARD PROCESSING – There is no double entry into the computer and then outboard swipe terminal. With BST Software, there is just one swipe and with a high speed connection saving processing time, it provides fast customer service. This reduces mistakes and makes it much easier to reconcile the day’s transactions.

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FRANCHISE REPORT


BUY PROCESS IS ENHANCED WITH INTERACTIVE LINKS TO EBAY & CPSC – This allows buyer to see current prices matching those to be purchased and also if needed, recall information from the Consumer Protection Safety Council.

FULL NETWORKING AND MULTI-USER CAPABILITIES – To support sharing of data, files and resources between computers, and peripherals. System is also ‘touch-screen friendly’ when configured with touch screen monitors.

FULL WINDOWS COMPATIBILITY – With 32/64 bit operating systems. Full network, client server and multi-user capable; user friendly menu driven interface and design. Easy to use and short learning curves. Secure screen functionality with employee access to track all program transactions by Employee ID.

The BTS Software system does real-time adjustment of inventory for each point of sale transaction, creating logs and extensively tracking each and every item through it’s full life cycle.

Preset preferred group discounts management (employee, seniors, etc.); any combination of cash, check and gift card or store credit payout for ‘buys;’ automatic building of tags, labels and audit receipt with each ‘buy’ transaction; barcode labels and tags printing and re-printing/recall and reprint sales receipts; optional integrated credit card processing using X-Charge; no charge integrated gift card tracking, etc. ...plus many more features and functions.

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FRANCHISE REPORT


FRANCHISE REQUIREMENTSFINANCIAL ASSISTANCE

Owning a NTY Clothing Exchange store is a lucrative business opportunity and we understand that starting and owning your own franchise location can be a big step. We have a dedicated team of people that work with our current and prospective franchise owners to provide support and we can assist you with any financial steps you are taking in your move towards franchise ownership. You will receive assistance in the preparation of a comprehensive business plan and, if you request, be given a referral to a third party lender.

WHAT IT TAKES TO BE AWARDED A NTY CLOTHING EXCHANGE FRANCHISE:

• A desire to be your own boss and take control of your destiny.• A willingness to work hard, express a positive outlook and possess a strong desire to be prosperous.• Proven 5 year success in a business, organization or corporate environment with experience in staffing oversight.• A full-time, hands-on commitment to first building and developing your NTY Clothing Exchange franchise

business before turning it over to be run by managers.• The ability to meet financial requirements and responsibilities that come along with establishing, operating

and growing your own business.• Understanding and alignment with our proven business model, core values and business philosophy.• Appreciation that our franchise business operating system will shorten your learning curve, provide you

advantages of power in numbers, systems and experience, while helping you to maximize the potential of this business.

WE STOCK IT. YOU ROCK IT.

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FRANCHISE REPORT


ESTIMATED INITIAL INVESTMENT

Type Of Expenditures Amount Method Of Payment When Due

To WhomPayment Is To Be

Made

Initial Franchise Fee $15,000 to $20,000 Lump Sum

When you sign the Franchise

Agreement

NTY Clothing Exchange

Leasehold Improvements $10,000 to $20,000 As Agreed Upon As Incurred

Landlord, Various Third Parties

Suppliers

Fixtures and Supplies $46,000 to $66,000 As Agreed Upon Before Opening Various Third-Party

Suppliers

Signs $4,000 to $10,000 As Agreed Upon Before Opening Various Third-Party

Suppliers

Inventory $40,000 to $50,000 As Agreed Upon As Purchased Various Third-Party

Suppliers

Deposits and Business Licenses $2,000 to $9,000 As Incurred Before Opening Various Third Parties

POS System $10,000 to $15,000 Lump Sum Before Opening Third Party Supplier

Miscellaneous Pre-opening Expenses

$8,000 to $20,000 As Incurred Before Opening Various Third Parties

Additional Funds - 3 months $28,000 to $48,000 As Incurred As Incurred

Employees and Various Third Party

Suppliers

TOTAL $163,000 to $258,000

CASH DOWN REQUIRED (OUT OF THE TOTAL):

$70,000 – $80,000

TOTAL CAPITAL INVESTMENT:

$163,000 – $258,000

TIME FOR

SOMETHING

NEW

IF NOT NOW...

WHEN?

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FRANCHISE REPORT


HISTORYLEARN MORE ABOUT THE NTY CLOTHING EXCHANGE FRANCHISE!President and Director, Ronald G. Olson, founded NTY Franchise Company in 2006. NTY Franchise Company purchased the franchise rights for Clothes Mentor and New Uses from Dennis and Lynn Blum who are the Founders. NTY started Franchising Clothes Mentor in 2007. Clothes Mentor buys and sells used women’s clothing from sizes 0-26, shoes, handbags and accessories. Today there are 171 stores sold and 113 stores opened. New Uses buys and sells used home furnishings and accessories and has 12 stores sold and 10 stores opened.

From 1988 to 2000 Mr. Olson was President and Director of Grow Biz International (Now called Winmark, a public company). During this time Mr. Olson purchased the Franchise rights for Once Upon A Child, Plato’s Closet, Play It Again Sports and Music Go Round. Currently there are over 1,000 locations for these four brands.

In 2007, Chad A. Olson joined NTY Franchise Company, adding his 13 years of management experience from Grow Biz International to the Clothes Mentor team. Chad’s expertise encompasses business planning, store design, store location, POS and overall training. His knowledgeable leadership in these areas provides valuable support to franchise owners.

NTY Franchise Company purchased Laptop Exchange Franchise in 2013. Laptop Exchange has changed their name to Device Pitstop. They buy and sell used laptops, iPads, smartphones and service these devices. Device Pitstop is located in 5 states with over 20 sold.

In 2014 Mr. Olson opened two new brands, NTY Clothing Exchange and NTY Kids. NTY Clothing Exchange buys and sells clothing, shoes and accessories for teens and young adults and NTY Kids buys and sells clothing, shoes, accessories and equipment from newborns to age 14.

With a proven track record and solid concepts, NTY Franchise Company is poised for aggressive growth. The company’s goal is to franchise hundreds of NTY Clothing Exchange, NTY Kids, New Uses, Device Pitstop and Clothes Mentor® stores in the coming years.

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FRANCHISE REPORT


MANAGEMENT TEAM:The NTY Clothing Exchange management team has well over 80 years of franchising & retailing industry experience in this specialized business niche called RESALE. This experience will help you to shorten your learning curve, minimize potential costly mistakes and maximize this opportunity... your investment.

MEET OUR MANAGEMENT GROUP

PRESIDENT: RONALD G. OLSONRon Olson has been President and a director of NTY Franchise Company since October 2006. Olson’s background includes starting his career at Dayton’s Department Store and held many management positions. In 1977 he opened his own furniture store in Minnesota, which was a Drexel Heritage prototype store. In 1988 he co-founded Grow Biz International now called Winmark. The first franchise rights that Olson purchased and started marketing was Play It Again Sports. Olson continued buying the Franchise rights for Once Upon A Child, Plato’s Closet and Music Go Round. Today there over 1,000 Franchise locations.

Under the NTY Franchise Company the company bought the Franchise rights for Clothes Mentor and New Uses. In 2013 Olson bought the Franchise company called Laptop Exchange and changed the name to Device Pitstop. In 2014 the company opened NTY Clothing Exchange and NTY Kids. There are currently 204 stores sold and 133 stores opened under the NTY Franchise umbrella.

CHIEF OPERATIONS OFFICER: CHAD OLSON Chad Olson has been Chief Operations Officer of NTY Franchise Company since January 2007. From May 1994 to December 2006, he held various positions for Winmark Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for the Once Upon a Child® concept from 1999 to 2002 and Regional Operations Manager for the Plato’s Closet® concept from 2002 to 2006.

VICE PRESIDENT OF FRANCHISING: JAMES WOLLMAN James Wollman has been Vice President of Franchising for NTY Franchise Company since January 2007. From April 2004 to December 2006, he was Director of Franchising for Dunn Bros Coffee Franchising, Inc., located in Minneapolis, Minnesota. From December 1991 to April 2004, he served in franchise sales and development for Winmark Corporation (f/k/a Grow Biz International, Inc.), located in Golden Valley, Minnesota.

LET’S WORK TOGETHERYOUR SUCCESS IS OUR GOAL

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VICE PRESIDENT OF SOFT GOODS: TED MANLEYTed Manley has been Vice President of NTY Clothing Exchange and NTY Kids since January 2014 and Vice President of Clothes Mentor since November 2013. Ted has held many management positions with Grow Biz International now called Winmark. Mr. Manley was President of all Winmark Brands, which included Once Upon a Child, Plato’s Closet, Music Go Round and Play It Again Sports. There are currently over 1,000 locations for the four brands.

VICE PRESIDENT OF NEW USES AND DIRECTOR OF NEW STORE DEVELOPMENT: PETE PALMISANO

Pete Palmisano was promoted to Vice President of New Uses in 2014. Mr. Palmisano has been our Director of New Store Development and oversees New Store Development for Clothes Mentor, Device Pitstop, NTY Clothing Exchange and NTY Kids. Pete started his career with Dayton Hudson department stores. Pete joined Grow Biz in 1992 with Once Upon a Child and held many management positions. He was a Multi-Site Operations Manager with Macy’s based in Minneapolis, Minnesota and then General Merchandise Manager with Linder’s Greenhouse, Inc., in St. Paul, Minnesota before joining NTY Franchise company.

DIRECTOR OF STORE OPERATIONS: BECKY GEYER

Becky Geyer has been Director of Store Operations since May 2014, overseeing our company store operations for Clothes Mentor, NTY Clothing Exchange and NTY Kids. Prior to joining NTY Franchise Company, Ms. Geyer was the Vice President of Marketing for the Carlson Companies under the Carlson Wagonlit Travel Franchise Group. Becky also held various management positions with Grow Biz International–now called Winmark Corporation. While there, she headed up the Once Upon A Child and Plato’s Closet franchise brands and managed the systems’ growth to over 250 locations.

DIRECTOR OF TRAINING AND NEW STORE DEVELOPMENT: LAURA THUERINGER

Laura Thueringer has been our Director of Training and New Store Development since April 2014. Laura started with NTY Franchise Company in 2008 with Clothes Mentor and has held many roles including: Store Manager, New Store Opener, Regional Operations Manager and Senior Operation Manager. Prior to joining NTY Franchise Company Laura spent 12 years working many different positions with Old Navy (Gap, Inc.).

DIRECTOR OF MARKETING: JENNY MANN

Jenny Mann has been the Director of Marketing since January 2013. Jenny started with the NTY Franchise Company in 2008 with Clothes Mentor and has held many roles including: Store Manager, New Store Opener and Regional Operations Manager. Prior to joining NTY Franchise Company, Jenny worked for Old Navy (Gap, Inc.) and Target in management roles.

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FRANCHISE REPORT


SCHEDULE AND ATTEND A PRIVATE WEB MEETING (WEBINAR)

Our Brand Overview.

PHONE CALL TO ADDRESS FURTHER DETAILED QUESTIONS

We hold a call to address your additional questions from your full review of the Franchise Disclosure Document or any other questions you may have.

SCHEDULE AND ATTEND A PRIVATE WEB MEETING

PREVIEW of the Franchise Disclosure Document (FDD). The FDD contains individual store financial performance information, detail on the investment, territory protection, overview of our training and support, and much more… The FDD is then e-mailed to you right after the webinar.

VALIDATIONS & RESEARCH

In addition to the lists provided in the FDD, you will receive personal contact information so you can make calls and e-mail correspondences with our existing franchisees to validate the system and our operational support.

FULLY REVIEW THE FDD

Review FDD and develop your list of additional questions.

DISCOVERY DAY

You can then schedule and attend our Discovery Day at our Minneapolis, Minnesota main office and company store.

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OUR 6 STEP FRANCHISING PROCESS:

SEE NEXT PAGE TO GET STARTED >

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FRANCHISE REPORT


OWN A NTY CLOTHING EXCHANGE!

GET STARTED HERE:

Contact One of our Franchising Representatives:

Direct: (952) 283-3411 Toll-Free: (866) 261-2030, Ext 5

[email protected]

AFTER READING THIS FRANCHISE INFORMATION REPORT YOU MAY WANT MORE DETAILED INFORMATION.

Please click the link below to complete our brief Initial Application.NTY Clothing Exchange Initial Application

This application simply helps us to see if you may be a good fit for us - and if NTY Clothing Exchange may be a good fit for you. After completing this application you will get information on:

• Store financial performance history.• Items that make up the initial investment.• Funding/finance, training & store design/build-out.• Initial and ongoing fees.• Real estate/site selection support.• Training tools & advanced programs/work shops.• Technology tools & system support for inventory

and cash flow management.• Advertising/marketing programs & support.• Ongoing store operations support.

http://dover.franconnect.net/nty/leadQualificationDetails.jsp

franchise information report - nty clothing exchange · to our franchise owners, including helping...

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