Green is the new Black: long before it was so fashionable to recycle and reuse, Lynn Blum launched a resale shop for kids’ clothes and toys. now it’s a burgeoning multiple-brand franchise operation.

Lynn Blum, 55, mother of Ben, 29, Brian, 26, and William, 25; founder of Once Upon A Child, Plato’s Closet and Clothes Mentor, with about 500 stores throughout North America.

My story: I began my career back when working moms were snagging lots of “first” titles. I was the “first” woman sales representative for Gerber baby food—a not-so-glamorous gig that involved driving from store to store to make sure our products were properly stocked and displayed. I was pregnant with my first son, Ben, so the sore feet, swollen ankles and peculiar looks from male coworkers and customers just added to the charm of it all. Luckily, the job was a thread that led me to a business franchise idea that eventually spawned some 500 stores throughout North America—and allowed me to live the very comfortable beachfront life I now enjoy.

The idea came to me while I was trying to figure out what to do with all the samples I had around the house. One of the perks of working for Gerber (besides the company car—a Ford Thunderbird) was tons of free products: everything from Onesies and stuffed animals to baby bottles and training pants. It was more than I could ever use, so I hauled much of it to a suburban Chicago resale shop, which paid me for my samples. I used the money to buy secondhand clothes for my son, including a tiny Izod polo shirt I couldn’t have otherwise afforded. I was inspired, and while I was reading bedtime stories to my young son, the perfect name for a children’s resale shop popped into my head: Once Upon A Child.

I had two more kids and hit many a garage sale (OMG, all you could see was kids’ stuff everywhere) before I opened my first resale store in 1985. The concept was simple: Create a fun, efficient and convenient way for parents to recycle their kids’ outgrown items. We soon had a devoted following who were thrilled to outfit their kids in designer wear and find toys at lower prices than at the mall.

As much as I’d like to, I can’t take credit for the brilliant idea to franchise our stores. People who visited our shop from out of state were the ones who asked about letting them open their own stores using our name. In our first seven years, we opened seven stores. Business was fabulous, but we were fried—managing the franchises ourselves in addition to running our own stores was just too much.

So in 1992, once again help found us: We were discovered by Grow Biz International (which later became Winmark Corporation), a company that buys franchises. The deal they offered allowed us to stay on as consultants, run our own stores (which numbered nine at the time) and continue to make money from our idea while Winmark went out and sold and marketed the business. They took the pressure off. Today, there are more than 230 Once Upon A Child stores in North America, each independently owned and operated.

In addition, we’ve successfully launched two more franchise companies: Plato’s Closet, a resale shop for teens, and Clothes Mentor, which buys and sells used clothing for women. We sold these to larger companies, too. There are now 240 Plato’s Closet and 12 Clothes Mentor locations.

My oldest son, Ben—the first beneficiary of that little used Izod shirt—is now our general manager and is responsible
for all the day-to-day operations. My youngest son, Billy, works in our IT department. All three of our kids have worked in our business at some point. There were periods over the years when I worked so hard I feared I’d built a monster. I spent so much time building the business that I sometimes have more than a pinch of regret that I missed things here and there with my kids. But to be able to enjoy this life now, feet in the sand, sons healthy and happy, I ask myself, “Was it all worth it?” Yes. Yes, it was.

Lessons Learned
1. Location, location. This can make or break your company, and the best person to pick the right spot is you—so trust your gut. Find a landlord who will work with you; choose a convenient spot close to your home so you, as the owner, can frequent your store; and, of course, select a location where you’ll get plenty of foot traffic.

2. Invest in Training. Buying inventory and dealing with customers came naturally to me, so I couldn’t understand why it didn’t work that way for others. Don’t expect that your employees will just “get it.” Be willing to invest the time and money necessary to teach staffers all the aspects of the job, even if you think it’s obvious.

3. Learn to Delegate. This part was hard for me. But owning nine stores at once forced me to find managers upon whom I could rely. I believed in promoting from within because it gave me a chance to really know my managers and their work habits.

Ask a Pro: Brand Extension
Want to know if your small franchise operation is a lure for a bigger fish? Heed advice from Lorne M. Fisher, CEO and managing partner of Hollywood, Fl–based Fish consulting, which represents clients from Dunkin’ Donuts to Mr. Clean Car Wash.

The business must be easily replicable—over and over again. This is across all facets of the operation, from decor to signage, operations to marketing. the more easily the concept can be replicated, the more successful the franchisee can be. This may require going back to your business plan and evolving the model a bit so it can become a franchise.

Brand power is a must. Most businesses that become franchises are selling a system and a brand. the more compelling the brand and the more easily it defines the business, the easier it will be to attract consumers.

Your financial model should be clear. Franchisees are looking for a financial model they can understand and follow in order to replicate the return on investment that the business is currently enjoying. This includes defining the costs of goods, inventory and so on.

You must have a smart training program and operations manual that will easily teach franchisees how to operate the way you have. Training all the way through development of the locations is critical. You need a program that addresses everything: site setup, real estate selection, marketing, hiring and operations.

Hiring setup lawyers is crucial. You need them to handle the development of the documents and registrations necessary to become a franchise.