The Opportunity - Frequently Asked Questions

Can you give me a simple look at the ThriftSmart process?

ThriftSmart receives donations from individuals who support our charities. These donations are mostly household merchandise such as clothing, shoes, furniture, appliances, dishes, kitchen items, decorative, and just about anything else you can imagine. We receive these items, determine their salability, price items for resale or recycle items with little to no retail value, display them in a pleasant retail environment, and receive funds when a customer purchases them. We then pay our employees and other operating costs. The profit that is left goes to the charity.

What is the ThriftSmart message or philosophy?

ThriftSmart is creating a perception that shopping thrift is not just out of need, being cheap, or love of a treasure hunt, but that it is SMART. We have SMART Shoppers, SMART Shopping Calendars, and SMART Partners. Our mission is to encourage thrifty living. This enables our customers to save money while supporting charity. As John Wesley encouraged us, “Make all you can. Save all you can. Give all you can.” This maxim is at the heart of being SMART with your money. Thrift is being money-wise with a purpose. Not only in our name, but in our marketing we educate the consumer to be smart with their money by shopping for department store brands with department store selection at garage sale prices!

What is the process of becoming a ThriftSmart Franchisee?

First a potential franchise prospect either calls or writes requesting franchise information. Then, an information packet, which includes a frequently asked questions summary, a questionnaire, and other information about franchising is sent to the prospect. Then, the prospect sends in the completed questionnaire.

Upon receipt of that information, we conduct the initial approval process. After approval, there is a personal meeting to share additional information, including the Uniform Franchise Offering Circular (UFOC).

Next, there is a franchise agreement or an area development agreement that is executed by both parties, and up front development fees are paid. At that point, the franchisee begins the process of hiring a manager and locating a site for the first store. The franchisor will be providing assistance throughout the process. Assuming a positive review, the franchisor accepts the site, and when the location is secured, a franchise agreement is executed.

How large is the initial total investment necessary to open a ThriftSmart?

The total investment to open a ThriftSmart store is estimated to be between $212,750 to $357,750. Development costs can vary widely, depending on such factors as location, lease costs, building improvements, and store size. The Uniform Franchise Offering Circular provides more information on these and other related subjects. You will receive the UFOC, upon completion and acceptance of your questionnaire at a face to face meeting.

What is provided for the franchise fees and royalties that are paid?

The franchise fee provides funding for all costs incurred by ThriftSmart associated with the organization and maintenance of the franchise system. These costs include: trademark registration and protection, the process of franchisee selection, new store openings, the training of managers, the process of site selection and evaluation and assistance in the development of the business.

Royalty fees provide franchisees with the benefit of the on-going operating system. This system includes operating procedures, collection and processing of donations, pricing systems, marketing systems to donors and retail shoppers, financial reporting systems, customer and partner management systems that enable you to operate your ThriftSmart store up to its full potential. These fees also provide for the on-going support of our management team, and the development initiatives that enhance the performance of the overall system. In addition, the fees provide the staff necessary to ensure that proper operating standards are maintained at all of the locations. All of these services help to enhance the brand awareness that the ThriftSmart system enjoys. More information is contained in the UFOC.

What type of location should be developed?

The ideal location is class B second generation retail space in a strip center with good accessibility and visibility to donors and retail customers. A typical ThriftSmart store operates in a strip-mall location or other leased facility containing 20,000 to 30,000 square feet of heated and cooled interior space. We do not require or recommend a free-standing or newly constructed building. There are many ways to go about development, and we will provide assistance throughout the process. We will provide you with detailed information on store layouts, specifications, fixtures and equipment.