It is not always easy for a company to do better as the economy gets worse, but Just Between Friends is definitely doing well. It might be the opportunity for mom’s to clear out their closets or the fact people are looking to buy quality used items, but either way business is good for JBF franchisees.
Sellers at each event have the opportunity to make up to 75% on what they sell. Each franchisee supports a local charity as a way to give back to the community. The profit margins are high with each event held because there are no employees to hire, the help required is brought in on a volunteer basis in return for the opportunity to shop the sale before it opens. When you put that together with the considerable size of just one event, it is no wonder that people from all around the area will shop just to find the best deals on used items. Just Between Friends offers an opportunity that will only benefit everyone involved.
As you might have guessed, this grand opportunity was born out of the mind, and livingroom, of two mom’s; Shannon Wilburn and Daven Tackett. As co-founders for Just Between Friends, they have taken what was originally a small idea and built it into a successful franchise.
What is Just Between Friends?
Just Between Friends is the nation’s leading children’s and maternity consignment event. It’s called Just Between Friends because that is how it began – between friends. Our franchisees have two big sales events a year – one in spring and one in fall. Local moms/families sign up as consignors and can earn up to 75 percent on what they sell. Each franchiser has a sale twice a year because that is typically when parents need to clothe their children – although some franchises are now offering a third “All-Seasons” sale in the summer. Just Between Friends has always offered families the opportunity to recoup their investment and find “cash in their closets” by selling items that they have outgrown or no longer need. Consignors have total control. They set their own price and tag their items while Just Between Friends does the rest of the work: providing a venue, setting up the sale, marketing it and working it. Tens of thousands of families shop our sales across the county and save a bundle – up to 80 percent – on the things they need for their family. We offer high quality and low prices plus a chance to earn money. We have strict standards on what we will sell and we have hundreds of volunteers that help at each event in exchange for being able to shop early. The business has always done well in a strong economy but it is truly thriving in this recession and winning over new customers every day as well as potential franchisees.
What inspired it?
Just Between Friends began in Shannon Wilburn’s living room in 1997 in Tulsa, Oklahoma when we were both young moms with little children. Shannon was working as a teacher with two young children and was looking for a way to make some extra money while also saving money on children’s items. She decided to have a “sale” in my living room and asked my friend Daven Tackett to help me out, since she was a “garage sale” queen. The main inspiration was to save money and at the same time help our friends do the same – and to get back some of the money we spent on all of the clothes and toys for our kids.
How many locations do you currently have? Where are they?
We currently have 95 franchises in 20 states: Arizona, Arkansas, California, Colorado, Florida, Idaho, Indiana, Kansas, Michigan, Minnesota, Missouri, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
Tell us a little about your franchise opportunity.
Just Between Friends offers people the chance to own a business that really can make a difference. A business that you truly can work part time (the exception being during the actual sale) and build a good, strong supplemental income. Our more established franchisees make an income comparable to a solid, full time job. We offer a solid operational and marketing base with strong support from us (Shannon and Daven) as well as other franchisees. We provide our franchisees the tools to succeed – website, marketing materials, operations manual, branding and straining. Each franchise supports a local charity so you can really make a difference in your local community.
What are your requirements?
The franchise fee is $10,500 and the royalties are between 2 and 3 percent on the gross sales less the sales tax. Both of these amounts are much less than the average franchise fee of $35,000 and the average royalties of 6-8 percent. Using statistical data from a mapping company, Just Between Friends territories are decided by using several different demographic factors. In the more highly populated areas, territories are decided based upon number of families with children ages 0-10 living in the household. We do require that at least one 50% owner live within 30 miles of the territory in which the event will be held. JBF Franchise system searches for candidates with a strong sales background, organizational skills, and computer literacy as well as a candidate who is flexible when working with the public.
In what ways has your business (and franchise opportunity) grown/changed since your business launched in 1997?
In 1997, we were a small living room sale that grossed $2000 and netted each of us $150 – and at the time we were thrilled. The idea caught on quickly and spread by word-of-mouth and soon we were having a big sale in the Tulsa Expo Center. We helped people start ten other sales in other cities and several of our contacts were telling us we needed to franchise – and we had no idea what that entailed. So, we started researching it and decided it would be a perfect fit for our business. The ten sales had the option of being “grandfathered in” before we formalized the franchise. We began in 2003 and sold our first new franchise and it has continued to grow and take off ever since. Today we have 95 franchises in 20 states with a plan to be in all 50 states within 5 years. Our growth has been beyond our expectations. In 1997, our gross sales were $2000. In 2008, our gross sales for the Tulsa sale topped $950,000 and as a franchise system we grossed 6.8 million dollars. We are on track to top 10 million in 2009. It is overwhelming when we look at how far we have come but it has succeeded because it is something every family in every community is looking for – a way to recoup some of their investment on children’s items while saving on what they need.
Did either of you ever imagine that you would end up co-founders of a business and business opportunity? Have you always been entrepreneurial?
We really did just start out to save a little cash and made a little cash, but then when it was a success, the entrepreneurial bug bit us for sure. Who would have thought we could create a successful community event with thousands of “consignors and an army of volunteers who would work at our events for free so they can then shop at our events and pay us money for the items they buy? But that is what happens at our sales across the country. Just Between Friends works because of the convenience we offer our families – our consignors and volunteers. It is the profit factor – they also make money on the items they sell. Our consignors have a vested interest in the business – our consignors are the business. They know the more successful a sale is, the more money they will make.
What lessons have you learned from your business?
Shannon
Running a business definitely takes more time and talent than you probably realize. So one key to success is surrounding yourself with smart people – you don’t have to be an expert at everything. You just need to know how to find people who can do the tasks that are not your strength. As tasks, problems and decisions come – surround yourself with people that can help you get the answers and solutions you need.
Daven
Any business you want to start – start small – and build. We did not expect that we would have to start at bottom and work our way up, but we did. Increase your advertising and marketing as you have income and resources to increase. Everyone wants everything right now. We didn’t operate that way.
Shannon
Another lesson: reach for the stars and work backwards. Play to your strengths and your business partner and/or co-workers strengths. Daven and I have very different personality styles – different business styles – we have worked to really mesh our two distinct styles. We have the same goals but different paths.
Do you have any tips that you’d like to offer potential franchisees?
Shannon
If you’re looking for a get rich quick concept…this is not it. JBF is a well oiled machine, but you definitely have to put in the work. We tell applicants all the time that our franchisees make it look easy. They are organized, smart, self motivated women and men who want to run a successful business that also helps their communities. JBF is a feel good concept. The events truly help so many families that it really doesn’t feel like a job.
Daven
When you are ready to purchase a franchise don’t forget to ask the question, “What will I actually be doing on a day to day basis?” This will prepare you for the changes in your life that are about to take place. Even though JBF is a seasonal event, there are still aspects of running the business that do happen on a daily basis.
Also know that if you are hiring someone to run your franchise business instead of running it yourself you will need investment money to cover payroll. So be smart and make sure you have the financial backing you need before investing in any franchise.
What advice would you give to someone that is interested in creating a franchise opportunity out of their current business?
Shannon
It is definitely fun to see something that you have created succeed and flourish. I would have to say that my best piece of advice is to join the International Franchise Association. This is a national franchise association that abides by a code of ethics. They are a huge support in the franchising industry. http://www.franchise.org
There are many suppliers that provide the answers to so many questions that you have when you are starting out and as you are growing. Continue learning. Play to your strengths: Do the things that you are good at doing and hire people to handle the other tasks that are not your strengths. You don’t have to be an expert in all things, but you do have to surround yourself with people who have the same goals and visions for your company.
Daven
Before franchising your own business you need to run the numbers on what it will actually cost you to get it up and running. Do not price your franchises too low. Make sure the fee is enough to allow you to provide your owners with the training any support they need to build a successful company.