Editorial

Winmark Corporation helps franchisees cash in with “retail recycling”

If you are a parent, one thing you can be sure of is that your children will quickly outgrow pretty much anything you buy them – cribs, snowsuits, jeans, hockey skates, and often before they’ve had much wear and tear. What’s a parent to do?

With problems come solutions and in this case the solution was provided by a woman in Minneapolis who started a business called Play it Again Sports. Martha Morris opened a retail store where parents could trade in used sports gear and get cash. The concept caught on quickly. Just as importantly, there was now a place for neighborhood parents to find great prices on used sports equipment. The business was an instant success and Franchising began in 1988.

The group who took on the management of the Franchise (before Winmark it was called Grow Biz International, Inc.) thought the “retail recycling” concept could be a model for other retail areas and began acquiring successfully established businesses in the used goods market. In November 1992, they purchased franchising and royalty rights from Once Upon A Child, Inc., an Ohio based chain selling children's clothing, furniture and toys, which had been started in 1985. The couple who started Once Upon A Child also started Winmark’s third concept: Plato’s Closet, which offers gently-used yet trendy clothing for teens and young adults.

Steve Murphy, Vice President of franchise Management for Winmark, says that today there are 400 Play it Again Sports franchises in operation, 185 Plato’s Closet stores and 210 Once Upon a Child locations in the U.S. and Canada. (An additional brand under their umbrella is Music Go Round, which sells new and used musical instruments and equipment.)

“Our franchisees have an emotional connection with our brands because they love kids. Most are parents who discovered our stores through their children. Our Play it Again Sports franchisees are often men and women who have been heavily involved in community sports programs. They are sports fanatics just as the Plato’s Closet owners are fashion fanatics. They can do what they love and make money doing it.

“Our stores are owner-operated,” continues Murphy, “which means we have the very best customer service a customer can experience. Our owners are proud of what they do and usually involved in their communities. Sports store owners often sponsor youth sports teams and are well-known and respected in the community.”

Winmark, headquartered in Minneapolis , offers franchisees two weeks of training which includes an aspect most franchisors don’t cover: WHAT’S HOT! Since brands matter to kids and parents, whether you are talking about car seats or snow boards or crop tees, training includes lots of information about “hot” brands so franchisees know what their customers will be buying. Franchisor support also includes help with financing and leasing along with site selection.

Site selection is based on demographics and Winmark has locations pre-mapped out to help the franchisees find the right area. Expensive locations, says Murphy, are not necessary and a type “B” location, such as a strip mall, is less expensive and yet works well for the business. The size of the store will be from 3,000 to 7,000 sq ft and will require several full-time and 2-6 part time employees.

“Competition is not something we worry about,” says Murphy. “For example, having a big box sports store near our Sports stores only serves to point out how great our prices are. We feel competition is good and makes everyone better at the end of the day.”

There is also a “Grand Opening” program and a variety of marketing materials available to franchisees, for a flat yearly marketing fee. “Since brands and styles vary by region, we find that providing local advertising for our franchisees is more useful. We provide TV, radio, flyers, coupons, frequent buyer cards, etc.,” says Murphy.

Stores will have “Buy Days” where they are open to the public who can bring in items to sell. These are held in the 6-8 week time-frame prior to grand opening. The stores also have new merchandise to sell customers, usually provided by the company’s discounted buying plan. For example, Plato’s Closet stores will have a mix of 90% ued and 10% nw while Play it Again Sports stores will sell about 80% nw products and 20% ued.

“Our franchisees,” says Murphy, “come from all walks of life, including brokers, teachers and lawyers. What they have in common is that they are good at engaging the public and are very involved and hands-on in their stores. Most of our franchisees do not have a retail background but have kids and really enjoy dealing with the public. We have many franchisees who were with Fortune 500 companies but became just plain tired of the rat race. They came to realize that life was not just about making money, it was about doing something they have a passion for and also giving back to the community by providing a valuable service.”

If you love working with people and want to make a difference to families in your neighborhood, Winmark can help you establish your own business. They will train you in all areas of operations and offer strong support services. Winmark has a proprietary computer system and creative advertising and marketing materials along with great franchisees to offer you peer support. With 18 years of retail recycling success, Winmark has the experience you are looking for in a franchise opportunity.