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Below is an in-depth analysis and side-by-side comparison of USA Baby vs MODE including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $344,000 - $650,000 | $171,000 - And Up |
Franchise Fee | $23,400 - $60,200 | $30,000 |
Royalty Fee | 3% | 6% |
Advertising Fee | - | 1% |
Year Founded | 1975 | 2007 |
Year Franchised | 1986 | 2011 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 years | - |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | Our franchisees first take a three phase online course after which they spend one full week in Fargo at our Store Support Center and Flagship location. We send a team of 2 to every store for a full week before they open. Once open for six weeks, we offer a Phase VI one-on-one training program with our Founder and the franchisee. |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Ad slicks, Regional advertising | - |
Operations |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
USA Baby was founded in 1975 by Alan Levine. It began franchising in 1986 and the chain now includes international locations. USA Baby offers more than 2,000 items for infant and child care. The privately held company is based in Elmhurst, Illinois.
MODE is a designer outlet in a boutique environment and Home of the $40 Designer Jean. We are a Fargo, ND based company and currently have 12 locations across the Midwest and SC. MODE is unique in that is take the outlet concept and merges it with a boutique environment to make it a special shopping experience, unlike any other.