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Today's newsletter highlights Kid to Kid, a children's resale franchise that buys outgrown clothes from local families and sells them to the next ones, with the average store doing just over $1M in sa ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
The Wolf of Franchises
The Wolf of Franchises
Oct 1st, 2026
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Good Morning Wolf Pack,

Today's newsletter highlights Kid to Kid, a children's resale franchise that buys outgrown clothes from local families and sells them to the next ones, with the average store doing just over $1M in sales.

Enjoy!

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FRANCHISE OF THE WEEK

Kid to Kid

Fast Facts

Background

  • HQ: North Salt Lake, Utah

  • Founded in 1992, began franchising in 1994

  • Kid to Kid is an upscale children's resale franchise that buys and sells gently used kids' clothing, shoes, toys, and baby gear. It operates under BaseCamp Franchising alongside sister brand Uptown Cheapskate.

Location Trends

Started as one Utah store in 1992 with a simple pitch: kids grow faster than paychecks. Began franchising two years later, crossed 110 stores across 24 states by the end of 2022, and now sits north of 120 locations, including a few overseas.

The real growth engine is the parent company, BaseCamp Franchising, which opened its 300th store across Kid to Kid and Uptown Cheapskate this summer with 50+ more in development. Not bad for a business built on clothes your kids flat-out refused to keep wearing.

Franchise Fees

  • Royalty: 5% of gross sales

  • Brand Fund: 0.5%

  • Franchise Fee: $35,000

Financial Overview

  • Since this is officially a recurring bit now, here are the numbers the old-fashioned way, with a responsible amount of teddy bears.

THE NUMBERS ACCORDING TO KROKIT

Investment Range: $358K–$640K 🧸🧸🧸🧸

Average Revenue: ~$1.02M 🧸🧸🧸🧸🧸🧸🧸🧸

💰 Wolf's Unofficial Profit Potential: solid for the price of entry, with a noticeable gap between average and great. The average store netted about $110K on just over $1M in sales, while top-quartile stores hit roughly $1.6M in sales and $231K in net income per the 2026 FDD.


The Wolf's Take

Every parent in America has a closet full of clothes their kid wore twice, and Kid to Kid figured out how to turn that into a million-dollar store.

Kids outgrow everything, parents hate paying full price for jeans that fit for two months, and this model gets paid on both ends of that cycle by buying inventory from the same families it sells to.

The 2026 FDD puts average gross sales at about $1.02M against a roughly $499K investment midpoint. That clears my 2x bar, but only by a hair.

Average net income of around $110K works out to roughly an 11% margin in a seven-day-a-week retail business, which is solid but not spectacular.

The top quartile is where it gets interesting, at $1.6M in sales and $231K in net income. That tells me pricing and moving inventory fast is the whole game here.

The franchisor says pretty bluntly on its own site that this isn't a passive business, so just walk in knowing you're buying an operator's job with good upside, as opposed to a mailbox money play.

Resources


SMB TWEET OF THE WEEK

Genuine Effort - _iamhabeeb

Great reminder from @_iamhabeeb that is as true in business as it is in real life.

Finding genuine people is so rare it's basically a cheat code to become one yourself.


WOLF BITES

  • Meta is expanding its AI agent Muse to small businesses 🧑‍💼

  • Scientists just discovered what coffee really does to your gut and brain ☕

  • How to limit the rat numbers? Train the humans 🐀

  • AI could force 11 million US workers into new careers by 2035 💼

  • Nvidia boosts share buyback by a record $150 billion 💰

  • Homeland Security taps $20M in taxpayer funds for pro-Trump ads 😲

  • Target joins growing list of stores slashing prices ahead of the holidays 🏷️


That’s it for this edition of The Wolf Report. Feel free to reply with any questions or feedback. Thanks and see you next week!

— The Wolf

LinkedIn

@The Wolf of Franchises

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