Scout & Molly's

The targeted Scout & Molly’s customer is a woman who wants to feel good about herself and sees clothing as a way to reflect that. She most often falls between the ages of 30-55. There will be customers who are as young as high school as well as those older than 55, however the majority of customers fall in the range noted. She may or may not have children, may or may not work full time and may or may nor be married. She typically is someone who follows trends and wants the brands and styles seen in fashion magazines. She wants items that can easily transition from day to night and also wants to be able to accessorize her clothing with fun fashionable jewelry pieces. She is someone who wants something more unique rather than items that are mass marketed. When she attends events such as weddings or cocktail parties, she doesn’t want to be wearing something that someone else has on which is why she shops at specialty stores. She values personalized service and will look to the store employees for guidance. She will expect the staff to be knowledgeable on the product and make her feel like she is being heard. If she has a good experience she will be back and will also tell her friends.

Additional Details

• No retail experience required (Management skills wanted)
• Semi-Absentee Business Model (Manager the Manager / Develop multiple locations)
• Retail Class A real estate – 900 to 1,200 square feet
• Development Assistance for Franchisee – Corporate helps find real estate locations, negotiates lease, assists in inventory ordering and control and provides a full training program for owners (Store in a box)
• Low labor model – Full time Manager and 3 to 5 part-time Associates (Style Scouts)
• ‘Vintage Chic’ shopping experience (Old meets New)
• Investment averages around $275,000 including working capital
•  Fun and simple business model!

The targeted Scout & Molly’s customer is a woman who wants to feel good about herself and sees clothing as a way to reflect that. She most often falls between the ages of 30-55. There will be customers who are as young as high school as well as those older than 55, however the majority of customers fall in the range noted. She may or may not have children, may or may not work full time and may or may nor be married. She typically is someone who follows trends and wants the brands and styles seen in fashion magazines. She wants items that can easily transition from day to night and also wants to be able to accessorize her clothing with fun fashionable jewelry pieces. She is someone who wants something more unique rather than items that are mass marketed. When she attends events such as weddings or cocktail parties, she doesn’t want to be wearing something that someone else has on which is why she shops at specialty stores. She values personalized service and will look to the store employees for guidance. She will expect the staff to be knowledgeable on the product and make her feel like she is being heard. If she has a good experience she will be back and will also tell her friends.

Why you feel your industry should be considered:

• People don’t shop where they are not comfortable. Boutiques are chic – people value the personalized service and attention they receive, the cozy ambiance and the unique merchandise that only Scout & Molly’s can offer.
• Clothing boutiques in the US is a $25 billion dollar industry with no dominate player in the industry
• 13-year track record by founder Lisa Kornstein

Why Scout & Molly’s:

• Semi-Absentee (keep full time job and/or open up multiple locations)
• Sophisticated back office system that provides real time information to the franchisee. Franchisees can see their profitability and associate production from any internet connection (i.e. iPhone, Blackberry, Laptop) from anywhere.
• Experienced veteran in the buying and fashion market process
• Our ideal candidate will have a type A, driver personality. Scout & Molly’s owners can be either semiabsentee or owner-operators. For those candidates who are considering Scout & Molly’s as a semiabsentee owner, we suggest management skills and the ability to delegate and hold associates accountable a strong skill set.
• Motivated and goal oriented
• CEO mentality on how to scale and grow their business(s). Empire builder.
• Social and comfortable participating in local events and charity events
• Personable

Company Background:

• Year founded: 2002
• Year franchised: 2014
• Number of franchises currently operating: 4 (27 new agreements awarded in 2015)
• Number of corporate owned franchises: 2
• Markets and Availability:
• US markets available: Please check for availability in all registration states. Not available in ND, SD and WA.
• Canadian Referrals: No
• International Referrals: No

Financial Details:

• Franchise fee: 1 - $50,000; 2 - $80,000; 3 - $100,000; 5 - $140,000; 10 - $240,000
• Total investment range: $275,000 (average single unit investment). Multiple – see franchise fees above.
• Liquidity (cash, stocks, bonds) requirement: $275,000
• Net worth requirement: $400,000
• Royalty: 5% (scales up to 6% in year 3 & beyond)
• Additional fees: .75% National Ad Fee, $5,000 per month local advertising requirement
• Financial assistance available: third party
• VetFran program: $1,000 off of the franchise fee
• SBA Registered: No (we are in the process of becoming registered)
• Absentee ownership available: Semi-absentee or Full-Time
• Accepting Master Franchisor and Area Developer Referrals: No
• Average number of employees required: 4 to 6
• Provide earnings guidance in Item 19 in your FDD: Yes – Item 19 shows $165,000 Net Income per unit

Support and Training:

Training and support program details:

• 1 week at corporate location
•  3 - 5 days onsite at franchisee location
• All field support staff are knowledgeable, experienced and available to franchisees.
• National Convention (Annually)
• E-Training
• Corporate Support Center
• Weekly productivity calls with Franchisee
• Cost for Training: (included in Franchise Fees)
• a. Investor: $0
• b. Others: $0
• c. Later for new hires: $0
• Lodging and airfare included: No
• Site selection assistance: Yes
• Lease negotiation assistance: Yes
• Mentor following training: NO
• Length of mentoring Franchisee: N/A