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Rhea Lana's Franchise ProfileRetail Franchises > Specialty Retail |
How to Open a Rhea Lana's Franchise?
To start your journey as a Rhea Lana's franchisee, you need to express your interest by submitting your contact information. Following this, a Rhea Lana's representative will reach out to you for an initial discussion. If you are still interested, you will participate in an interview and may receive a Franchise Disclosure Document (FDD) to review. Completing a franchise application is next, which includes providing proof of funds. If you qualify, you may receive an offer to purchase a franchise. The process culminates in signing the Franchise Agreement, after which you must hold at least two consignment sales events each year, typically one in Spring and one in Fall.
What Makes a Rhea Lana's Franchise a Smart Investment?
Evaluating the opportunity to invest in a Rhea Lana's franchise involves several key considerations. Initially, you should assess your financial readiness for an estimated total investment ranging from $28,675 to $45,900, which includes a franchise fee of approximately $19,500. Ongoing royalties are set at 3% of gross sales from consigned items, so it's vital to understand your market potential. Additionally, performing due diligence by researching the brand and local demographics can provide insights into potential profitability. Franchisees are encouraged to connect with current or former franchise owners to gain firsthand insight into the franchise's operational dynamics.
Why You Should Consider Becoming a Rhea Lana's Franchisee?
Rhea Lana's specializes in periodic consignment sales of children's clothing and other related items, offering a unique business model that appeals to families. Franchisees benefit from a supportive network and comprehensive training, which includes a mandatory Initial Training Program. You don't need prior experience in retail or consignment sales; however, being organized and personable can enhance your success. The franchise system encourages community involvement, creating a positive reputation that can lead to repeat customers and increased sales over time.
Is a Rhea Lana's Franchise the Right Opportunity for You?
Owning a Rhea Lana's franchise requires a commitment to personally manage and oversee the consignment sales events, as absentee ownership is not permitted. You will be expected to hold two sales events each year, with the first event typically occurring between three to nine months after signing the franchise agreement. The franchise has seen growth in its number of locations, indicating a stable business model. However, potential franchisees should be prepared for variability in revenue, especially in the initial years, and should weigh their capability to meet sales minimums set by the franchisor.
Rhea Lana's Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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Rhea Lana's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes shown in the chart and table.
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Units | 2021 | 2022 | 2023 |
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Total Units | 100 | 103 | 114 |
Net Change YoY | +3 | +11 | |
Franchised Units | 98 | 101 | 112 |
Net Change YoY | +3 | +11 | |
Corporate Units | 2 | 2 | 2 |
Net Change YoY | 0 | 0 |
Company Background
Rhea Lana's Franchise Systems, Inc. was established as a corporation in Arkansas in 2011, building on a foundation laid by its predecessor, Rhea Lana, Inc., which has been active in children’s consignment sales since 2004. The franchise offers a unique opportunity for franchisees to operate periodic, non-continuous consignment sales of children's clothing and related items, drawing on years of experience and reputation in the market.
Franchise Opportunity
Owning a Rhea Lana's franchise provides entrepreneurs the chance to tap into the growing market of children's consignment sales. Franchisees conduct two major events per year, one in the Spring and another in the Fall, leveraging a proven system to attract consignors and shoppers alike. The total investment to start a Rhea Lana's franchise ranges from approximately $28,675 to $45,900, which includes franchise fees and initial setup costs.
Corporate Structure
Rhea Lana's operates under the name Rhea Lana’s Franchise Systems, Inc., with its principal business address located in Conway, Arkansas. The company was founded by Rhea Lana Riner, who also serves as the sole shareholder. This structure allows for centralized support and resources for franchisees, ensuring adherence to brand standards and operational efficiency.
Royalties
Franchisees are required to pay royalties based on their gross sales from consignment events. The current royalty structure is tiered, starting at 3% on the first $100,000 of gross sales, decreasing as sales increase. This model incentivizes franchisees to grow their sales while ensuring a manageable cost structure for the franchisor.
Company Mission
Rhea Lana's mission is to provide families with a sustainable and affordable way to buy and sell children's items while fostering a sense of community. The franchise emphasizes quality and cleanliness in all consignment sales, helping parents find high-quality products at reasonable prices. They strive to create a positive shopping experience that reflects their commitment to family values and community involvement.
Brand Story
Founded in 1997 as The Children’s Clothing Exchange, Rhea Lana's has evolved into a recognizable name in children's consignment sales. The brand is built on the principles of sustainability and community support, providing families with a platform to recycle gently used children's items. Over the years, Rhea Lana's has expanded its reach through franchising, allowing more entrepreneurs to participate in the mission of promoting family-oriented values while running a profitable business.
Frequently Asked Questions
The initial investment for a Rhea Lana's franchise ranges from $16,500 to $19,500, depending on the size of the territory purchased. Additional costs, such as supplies and advertising, also need to be considered, which can increase the total investment.