- BizOp or Franchise: Franchise
- Name: Scout & Molly’s
- Category: Retail
- Subcategory: Women’s Apparel
- Cash Investment: $300,000USD
- Net Worth Requirement: $450,000 USD
- Home-based: No
- Passive investment allowed: Yes
- Financial Assistance: 3rd Party
- Veteran discount: Yes
- Item 19 Yes
Overall Rating 96 out of 100
WHAT IS THE PRODUCT OR SERVICE THEY OFFER THE CONSUMER?
Scout & Molly’s is a rustic chic woman’s apparel boutique providing merchandise to those with a flair for style. These are women who want to feel good about themselves and reflect their attitude with the clothes that they wear. These women typically follow trends and want to wear the brands and styles seen in fashion magazines. They look for items that can transition from day to night and accessories that complement their clothing. They are women who don’t want the run-of-the-mill mass-marketed items, but apparel that expresses their exclusive style. Scout & Molly’s offers a more personalized service and attention to their customer, in a cozy, friendly atmosphere.
WHAT IS THEIR BUSINESS MODEL?
A Scout & Molly’s business operates within a retail, class A real estate location with 900 to 1,200 square feet of space. Semi-Absentee involvement is allowed meaning you can manage a manager and not need to be daily hands-on. Few employees are required: 1 Full time Manager and 4 to 6 part-time Associates (Style Scouts). The buying process is facilitated by retail analysts at the corporate location. Hours of operation are consistent with other retail clothing shops.
Each location has a protected territory of a 3-mile radius.
WHAT DO THEY OFFER THE BUSINESS OWNER?
Scout & Molly’s provides a “store in a box” experience and experts assist you with:
- Real Estate Site Selection and Construction
- Lease negotiation
- Product Inventory ordering and control
- Merchandise Purchasing
- Achieving a fantastic income
- Merchandise Selling Techniques
- Point of Sales system allowing remote monitoring (Cloud-based)
- Working with 125+ designers
- Sophisticated back office system
- Training and Ongoing Support
- 1 week at corporate location; manager also attends this training
- 2 – 3 days onsite at franchisee location
- All field support staff are knowledgeable, experienced and available to franchisees.
- National Convention (Annually)
- Corporate Support Center
- Weekly productivity calls with Franchisee
WHO ARE THEY LOOKING FOR?
Although retail experience is not required, a candidate with a type A, driver personality fits best in this business. Scout & Molly’s owners can be either semi-absentee or owner-operators. For those candidates who are considering Scout & Molly’s as a semi-absentee owner, management skills are essential and the ability to delegate and hold associates accountable is necessary.
Other attributes that make good Scout & Molly owners:
- Motivated and goal oriented
- CEO mentality on how to scale and grow their business
- Empire builder
- Social and comfortable participating in local events and charity events
Franchise fees are as follows:
- Single – $50k
- 2 pack – $80k
- 3 pack –$100k
- 5 pack – $140k
- 10 pack – $240k
Scout & Molly’s requires candidates to have a net worth of at least $450,000 USD. A total investment of around $300,000 is typical and includes opening inventory, furniture, fixtures, equipment and working capital. Liquid cash requirement is $300,000
Ongoing royalties are 6% of gross sales
Additional fees include 1% for national ads, and $1,000 per month for local advertising.
MY OWN OPINION
The Scout and Molly’s franchise was developed by Rhino7 Corporation, the cream of the crop when it comes to franchise development companies. Rhino7 has been in this business for a long time and they know the ins and outs of making a brand successful. They mean business and guide the franchisor through the daunting list of moving parts that must be tackled before a brand can be successful. This is the most fortunate part of being a Scout & Molly’s franchisee; you have a strong backbone supporting you. Other franchises in Rhino7 portfolio includes All About People,Pro Martial Arts, and Storm Guard, all valuable brands.
Although there are no Scout & Molly’s in the area where I live, I love the idea of a more personalized clothes-buying experience especially now that I’m no kid anymore. I can’t always pull-off the outfits that I wore when I was young, so having sales people that can guide me is simply right up my alley. Have you ever gone to an event and saw someone wearing the exact same outfit? It is the most embarrassing thing EVER, so I also like the fact the clothes are unique. With clothing boutiques being a $25 billion dollar industry in the US with no leading participant, it has great potential with the right person. The founder is Lisa Kornstein, who now has a 13-year track record, who named the brand after her two dogs she had at the time she started on her journey. She has now grown Scout & Molly’s into a profitable business with the goal of creating a national brand.
For more information, please don’t hesitate to contact me.