How to Finance a Once Upon A Child Franchise: Resale Inventory
By Anthony Cornella
A Once Upon A Child franchise loan funds a different kind of retail store. Instead of ordering new merchandise from vendors, a Once Upon A Child owner buys gently used children’s clothing, toys and gear directly from local parents for cash, then resells it. That model shapes the financing: the budget leans heavily on opening inventory, store fixtures, a point-of-sale system and pre-opening expenses, with a leased storefront rather than an expensive real estate purchase.
This article explains what a Once Upon A Child store costs according to the franchisor’s 2026 Franchise Disclosure Document, the fees that continue after opening, how SBA and conventional loans can fit and what lenders look for. US Professional Funding is not affiliated with, sponsored by or endorsed by Once Upon A Child or Winmark Corporation; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Once Upon A Child Franchise Loan at a Glance
According to the franchisor’s 2026 disclosure document and its franchise website:
- Initial franchise fee: $25,000
- Estimated initial investment: $355,700 to $485,900
- Liquid capital: $75,000 to $105,000 in non-borrowed personal resources
- Net worth: $400,000
- Typical store size: 3,500 to 4,500 square feet
- Royalty: generally 4% to 5% of gross sales, according to the company’s annual report
- Advertising: a $1,500 annual marketing fee plus a required advertising spend of 5% of gross sales
- Franchise term: 10 years, with additional 10-year renewal terms available
- System size: 441 franchised stores as of December 27, 2025, according to the company’s annual report
- Financial performance representations: the 2026 disclosure document includes an Item 19
- SBA Franchise Directory: listed as Once Upon A Child, code S1218, with no additional directory note
What Is Once Upon A Child?
Once Upon A Child is a resale store for families with children. Stores buy and sell gently used and, to a lesser extent, new children’s clothing, toys, furniture, equipment and accessories, primarily for parents of children from infancy to age 12. Parents bring in items their children have outgrown and are paid cash on the spot, and the store buys year-round with no appointment required. The franchisor says it checks recalls on toys and equipment it sells.
The brand is franchised by Winmark Corporation, which is headquartered in Minneapolis, Minnesota, and has franchised Once Upon A Child since 1993. The company reports 441 franchised stores across the United States and Canada at December 27, 2025, up from 430 a year earlier, with 17 stores opened and 6 closed during 2025.
Why lenders view the model the way they do. A resale store’s cost of goods is driven by what it pays parents for used items, so lenders want to understand buying, pricing and inventory turnover. The brand’s long history and SBA directory listing make it familiar to many franchise lenders, and because stores are typically leased, the loan is usually a business loan rather than a real estate loan.
Once Upon A Child Franchise Costs
The 2026 disclosure document estimates a total initial investment of $355,700 to $485,900 for a single store. Here is how the main categories break down.
Initial franchise fee
The initial franchise fee is $25,000. According to the company’s annual report, the fee for an additional U.S. store is $15,000.
Leasehold improvements and build-out
Stores typically occupy 3,500 to 4,500 square feet in leased retail space. The construction scope is modest compared with a restaurant, but costs depend on the space and any tenant improvement allowance.
Fixtures, signs and technology
Racks, shelving and displays make up the fixtures line, alongside signs, cameras and a point-of-sale system. The company’s annual report says franchisees must use the required point-of-sale system, including its proprietary Data Recycling System software, and buy the computer hardware from the franchisor.
Opening inventory and pre-opening expenses
Opening inventory is one of the largest line items, because a store must be stocked before it opens even though most future inventory will be bought from customers. Item 7 also includes miscellaneous pre-opening expenses, three months of rent and additional funds for the first three months of operation.
Item 7 line items
According to the 2026 disclosure document:
- Initial franchise fee: $25,000
- Fixtures and supplies: $60,000 to $75,000
- Signs: $10,000 to $15,000
- Security cameras: $1,500 to $4,000
- Point-of-sale system: $23,200 to $30,900
- Leasehold improvements: $11,000 to $21,000
- Build-out: $35,000 to $55,000
- Deposits and business licenses: $5,000 to $15,000
- Opening inventory: $75,000 to $85,000
- Miscellaneous pre-opening expenses: $50,000 to $80,000
- Rent, first three months: $20,000 to $30,000
- Additional funds, three months: $40,000 to $50,000
- Total estimated initial investment: $355,700 to $485,900
Ongoing Fees and How They Affect Your Loan
According to the company’s annual report, franchisees pay royalties that are generally 4% to 5% of gross sales, plus an annual marketing fee of $1,500. Franchisees must also spend 5% of gross sales on advertising, and the franchisor may raise that requirement to 6%, with up to 2% paid into an advertising fund. Review Item 6 of the current disclosure document for the exact rates and any technology, software or transfer fees that apply to your agreement.
Lenders size a Once Upon A Child franchise loan by the cash flow left after operating expenses, and fees calculated on gross sales come off the top. Projections that leave out the advertising spend overstate how much debt the store can carry.
Renewal and reinvestment. The franchise term is 10 years, with additional 10-year renewal terms. The company’s annual report says all 44 Once Upon A Child agreements that came up for renewal in 2025 were renewed.
Franchisor Requirements for New Owners
The franchisor’s materials list a net worth requirement of $400,000 and liquid capital of $75,000 to $105,000 in non-borrowed personal resources, plus enough equity to cover the balance of the investment. Applicants can qualify individually or with a financial partner, and the franchisor verifies financial information later in the process.
Retail experience is not required; the franchisor says many owners come from corporate, military or other non-retail backgrounds. Owners must either operate the store themselves or have a qualified owner-operator actively running it, so a passive investment structure is not permitted. Training includes more than 65 hours of classroom and in-store instruction, and the franchisor says it typically takes 9 to 12 months from signing the franchise agreement to grand opening.
Because rent, build-out and inventory costs begin before revenue, line up loan approval before committing to a lease.
Ways to Own a Once Upon A Child
Opening a new store. A new store lets you choose an approved territory and build a store to current standards. Lenders underwrite projections rather than history, so the equity injection, your financial strength and your business plan carry extra weight. Our page on retail business start-up financing explains how new stores are funded.
Buying an existing store. The franchisor lists resale opportunities on its franchise website. An existing store comes with a sales history, a trained team and a customer base that already sells to the store, which gives a lender actual results to review. The buyer must be approved by the franchisor. Our guide to buying a franchise resale and our page on retail business acquisition loans cover how purchases are structured.
Adding stores later. The franchisor does not offer multi-unit development agreements. It requires a first store to be open for at least 12 months before it considers an owner for additional locations, which means growth happens one store at a time.
Financing Options for a Once Upon A Child Franchise
SBA 7(a) loans
The franchisor says it does not lend directly and that franchisees typically borrow from a lender through an SBA loan. SBA 7(a) loans can cover the franchise fee, build-out, fixtures, the point-of-sale system, opening inventory and working capital in one loan, subject to program rules and lender approval. They can also finance the purchase of an existing store.
SBA 504 loans
Most Once Upon A Child stores operate in leased space. If an owner buys a building to house the store, SBA 504 loans are designed for owner-occupied real estate and long-lived fixed assets and may provide longer-term financing on the property, subject to program rules.
Conventional term loans
Owners with strong credit, collateral and liquidity may use conventional business loans, particularly for a second store or an acquisition backed by existing results.
Equipment and fixture financing
Racks, shelving, display fixtures, security cameras, signs and point-of-sale hardware can sometimes be financed or leased separately. Because the franchisor supplies the computer hardware, ask your lender how that purchase will be handled. See our page on retail equipment financing and leasing.
Working capital and lines of credit
A resale store needs cash to buy from customers every day, with heavier buying around seasonal clothing changeovers, plus payroll and advertising in the early months. Our page on retail working capital and lines of credit explains the options.
Seller financing on resales
When buying an existing store, a seller may agree to carry part of the price. A seller note is typically subordinate to the primary loan, and SBA rules and lender conditions may limit how it is structured and repaid.
SBA Loans for Once Upon A Child Franchisees
SBA loans are made by participating lenders, with the SBA guaranteeing a portion of the loan. For a franchise, the lender must confirm that the franchise agreement leaves the owner in control of the business, and the SBA Franchise Directory streamlines that review.
The SBA Franchise Directory listing. Once Upon A Child appears on the SBA Franchise Directory under code S1218, with no additional note attached to the listing. In plain English, the brand’s franchise documents have been reviewed for SBA eligibility, so a lender does not need to analyze the franchise relationship from scratch. A listing does not approve any borrower or guarantee a loan; your credit, experience, equity and business plan still decide the outcome.
Program size. The SBA 7(a) program maximum is currently $5 million, and program rules can change; a single store’s budget falls well within it.
SBA application tips. Have your financial statements, tax returns, résumé, franchise documents, a lease or letter of intent, build-out quotes and a business plan ready. Our article on writing a franchise business plan for an SBA loan shows what lenders expect. Use our SBA loan calculator for planning estimates, which are not offers or approvals.
How Lenders Evaluate a Once Upon A Child Deal
Personal credit and financial history. Lenders review each owner’s credit history, tax returns and existing debts, and significant owners typically provide personal guarantees.
Net worth and liquidity. The franchisor’s $400,000 net worth and $75,000 to $105,000 liquid capital requirements are a starting point. Lenders will also look at how much cash you inject and what reserves remain after closing.
Management and retail experience. Retail experience is not required by the franchisor, but lenders like to see management, customer service or small business experience. Because owners must run the store or have a qualified operator doing so, lenders will ask who will manage day to day.
Business plan and projections. A strong plan explains the trade area, the number of young families nearby, competing resale and discount stores, staffing for buying and selling, and how you will build a base of parents who sell to the store. Projections should include royalty, advertising, rent and the cash you will pay out for inventory.
The disclosure document and franchise agreement. Lenders review the 10-year term, renewal rights, transfer rules and territory provisions, and they want the franchise term to cover the loan.
Site and lease. Lenders look at the lease term, renewal options, rent relative to projected sales and whether the lease can be assigned if the store is sold.
Historical financials on resales. Expect a review of several years of financial statements, tax returns and inventory levels.
Inventory: The Center of a Once Upon A Child Franchise Loan
Inventory is where a Once Upon A Child budget differs most from other retail franchises. Item 7 includes $75,000 to $85,000 for opening inventory, and after opening, the store keeps buying from customers. That buying requires cash every day, before the items sell.
Working capital is therefore not optional. Lenders want enough funds for steady buying while sales build, and many owners include an inventory and working capital component in their initial loan. Inventory turnover is one of the first numbers a lender asks about later.
Multi-Unit Growth
Because the franchisor does not offer multi-unit development agreements and requires the first store to be open at least 12 months before considering additional locations, financing a second store is usually a separate decision made after the first store has a track record.
Lenders then look at the first store’s results, global cash flow, remaining liquidity and who will manage each location. A second U.S. store carries a $15,000 franchise fee, according to the company’s annual report. Our article on how much franchise you can afford can help you test whether another store fits your finances.
Real-World Scenarios
A corporate professional opening a first store. A former corporate manager with no retail background meets the net worth and liquidity requirements and secures an approved territory. An SBA 7(a) loan covers the build-out, fixtures, point-of-sale system, opening inventory and working capital, while the owner’s cash covers the required injection.
A buyer acquiring an existing store. A buyer purchases an established store from a retiring owner. The lender reviews the store’s sales history and inventory levels, the franchisor approves the transfer, and the seller carries a subordinate note under the lender’s conditions.
An owner adding a second store. After more than a year of operating the first store, an owner applies to open another. The lender relies on the first store’s financial statements and the owner’s remaining liquidity, and the owner promotes an experienced manager to run one location.
Common Mistakes to Avoid
- Underestimating the cash needed to buy inventory from customers after opening
- Leaving out the advertising spend requirement when projecting cash flow
- Signing a lease before loan approval, given the 9 to 12 month path to opening
- Using borrowed funds to meet the non-borrowed liquid capital requirement
- Planning a passive investment when the franchisor requires an active owner-operator
For more, read the retail store loan mistakes that cost owners the most.
Next Steps to Finance Your Once Upon A Child Franchise
Step 1: Review the disclosure document. Read the current Once Upon A Child disclosure document with a franchise attorney, focusing on Items 5, 6, 7, 17 and 19.
Step 2: Confirm your territory and path. Decide whether to open a new store or buy an existing one, and check territory availability.
Step 3: Build your budget. Start with the Item 7 ranges, then replace estimates with real rent, build-out and fixture quotes and add a contingency.
Step 4: Talk with a financing specialist early. Confirm your likely injection and loan structure.
Step 5: Assemble your documents. Gather financial statements, tax returns, a résumé, the franchise agreement, a lease or letter of intent and a business plan with monthly projections.
Step 6: Coordinate approvals. Align franchisor approval, loan approval and lease signing so deadlines fit the 9 to 12 month opening timeline.
Once Upon A Child Franchise Loan FAQs
How much does it cost to open a Once Upon A Child?
The 2026 disclosure document estimates a total initial investment of $355,700 to $485,900, including the franchise fee, fixtures, build-out, opening inventory, three months of rent and additional funds for the first three months.
What is the Once Upon A Child franchise fee?
The initial franchise fee is $25,000. According to the company’s annual report, an additional U.S. store carries a $15,000 fee.
What royalty does Once Upon A Child charge?
The company’s annual report describes royalties as generally 4% to 5% of gross sales, plus a $1,500 annual marketing fee and a required advertising spend of 5% of gross sales. Confirm exact rates in Item 6.
How much liquid capital and net worth do I need?
The franchisor lists a $400,000 net worth requirement and $75,000 to $105,000 in non-borrowed personal resources.
Is Once Upon A Child eligible for SBA loans?
The brand is listed on the SBA Franchise Directory under code S1218 with no additional note, which simplifies a lender’s review. Each borrower still must qualify under program rules and lender standards.
Does Winmark offer financing?
The franchisor says it does not lend directly. Owners typically finance through outside lenders, and Item 10 of the disclosure document describes any financing arrangements.
Can I get a Once Upon A Child franchise loan with no retail experience?
Possibly. The franchisor does not require retail experience, but lenders will review your management background, your business plan and your financial strength.
Can I buy an existing Once Upon A Child store?
Yes, resale opportunities are listed by the franchisor, and the buyer must be approved. An existing store’s sales history can make the loan easier for a lender to evaluate.
How long is the franchise agreement?
The initial term is 10 years, with additional 10-year renewal terms available.
Can I own more than one store?
Yes, but the franchisor does not offer multi-unit agreements, and the first store must be open at least 12 months before additional locations are considered.
Final Thoughts
A Once Upon A Child franchise loan is mostly about inventory, fixtures and working capital rather than real estate. A published investment range, clear financial requirements and an SBA directory listing give buyers a solid starting point; budgeting for daily inventory buying and the advertising requirement does the rest.
US Professional Funding helps buyers finance franchise start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing solutions and retail business financing.
