Just Between Friends

# Just Between Friends Franchise Intelligence Report

## Executive Summary

Just Between Friends (JBF) is the leading children's and maternity consignment sales event franchise in North America, founded in 1997 in Tulsa, Oklahoma. With 148 franchised locations across 30 states and a low investment range of $66,665-$97,515, JBF offers an accessible entry point into the children's retail sector. The event-based business model allows for part-time or full-time operation and home-based flexibility. However, the franchise's 7.84% attrition rate (significantly higher than the 3% industry average) and disclosed litigation/bankruptcy history warrant careful investigation. Average gross sales of $239,983 with estimated earnings of $28,798-$35,998 position this as a supplemental income opportunity rather than a primary livelihood for most operators.

## The Business

**Business Model:** JBF operates pop-up consignment sales events for children's and maternity items. Franchisees organize semi-annual or quarterly sales events where community members consign items and shoppers purchase gently used children's clothing, toys, equipment, and maternity items.

**Founding & History:** Founded in 1997 in a living room in Tulsa, Oklahoma by Shannon Wilburn and Daven Tackett. The first sale featured 17 consignors and generated $2,000 in gross sales. JBF Franchise Systems, Inc. was established in 2003, and franchising began in 2004. Headquarters remain in Tulsa, Oklahoma.

**Value Proposition:** Low-cost franchise enabling community-based consignment events that provide value to budget-conscious families while offering franchisees flexible, potentially home-based business operations.

**Target Market:** Families with young children seeking affordable clothing, toys, and baby equipment; parents looking to resell outgrown items.

## The Numbers

**Investment Range:** $66,665 - $97,515 (significantly below Clothing & Fashion subsector average of $188,172-$368,063)

**Franchise Fee:** Up to $24,900

**Financial Requirements:** - Minimum net worth: $66,665 - $97,515 - Minimum liquid capital: $10,250 - $15,250

**Royalty Structure:** 3% of gross sales

**Marketing Fee:** 1% of gross sales

**Contract Terms:** - Initial term: 5 years - Renewal term: 5 years

**Training:** 48 hours total (23 hours classroom, 25 hours on-the-job)

**Financial Performance:** - Average yearly gross sales: $239,983 - Estimated yearly earnings: $28,798 - $35,998 - Franchise payback period: 3.0 - 5.0 years

**Unit Count (2024 FDD):** - Franchised locations: 148 - Operating in 30 states

**Territory:** JBF does NOT offer territory protections

## System Health

**Growth Trajectory:** Established system with 20+ years of franchising history and 148 units across 30 states.

**Attrition Concerns:** The franchise's 2022 attrition rate of 7.84% was MUCH HIGHER than the 3% Child-Related industry average. This elevated turnover warrants investigation into causes.

**Legal Disclosures:** The FDD discloses lawsuits and/or bankruptcy information, which may impact evaluation. Specific details require FDD review or subscription to research services.

**Business Model Flexibility:** Franchisees can operate part-time or full-time, with home-based business option available.

## Franchisee Experience

**Operational Model:** - Event-based business (typically 2-4 sales events per year) - Requires venue rental, volunteer/staff coordination, and consignor management - Technology platform for inventory and sales management - Marketing to both consignors and shoppers

**Training & Support:** - 48-hour initial training program - 23 hours classroom instruction - 25 hours on-the-job training - Online training resources

**Flexibility Benefits:** - Can be operated as part-time income or full-time career - Home-based business option available - Seasonal/event-based work schedule

**Territory Considerations:** No territory protections means potential competition from other JBF franchisees in nearby areas.

## Risk Assessment

**High Risk Factors:** 1. Attrition rate of 7.84% is 2.6x the industry average - indicates systemic challenges 2. FDD discloses litigation and/or bankruptcy information requiring investigation 3. No territory protections - vulnerable to nearby competition 4. Limited earnings potential ($28K-$36K/year) may not support full-time livelihood 5. Event-based model requires significant planning and execution capability

**Moderate Risk Factors:** 1. Venue dependency for sales events 2. Seasonal business with income concentration around event dates 3. Volunteer/staff recruitment for events 4. Consumer spending sensitivity for discretionary purchases 5. Competition from online marketplaces (Facebook Marketplace, Poshmark, ThredUp)

**Risk Mitigators:** 1. Very low investment threshold ($66K-$97K) limits financial exposure 2. Low ongoing fees (3% royalty + 1% marketing) 3. Proven 20+ year business model 4. Part-time operation possible - can maintain other income 5. Home-based option reduces overhead 6. Community-focused model builds loyal customer base 7. Recession-resistant value proposition (budget-conscious families)

## Competitive Position

**Industry Overview:** Children's consignment operates at the intersection of retail, sustainability, and family services. The market includes physical consignment stores, pop-up events, and online resale platforms.

**Direct Competitors:** - Rhea Lana's (similar consignment event model) - Kid to Kid (physical consignment stores) - Once Upon A Child (physical consignment stores) - Online platforms: ThredUp, Poshmark, Facebook Marketplace, Mercari

**Competitive Advantages:** - Leading pop-up consignment event franchise - Lowest investment in children's retail sector - Flexible part-time/home-based operation - Community-building model creates loyal following - 20+ year track record

**Competitive Disadvantages:** - No territory protection - Higher attrition than industry average - Limited earnings potential - Disclosed legal issues - Competition from online resale platforms

## Validation Questions

Prospective franchisees should ask:

1. What specific litigation or bankruptcy is disclosed in the FDD? 2. Why is the attrition rate 2.6x the industry average, and what is being done to address it? 3. What are the actual earnings for franchisees in my target market? 4. How many events per year do successful franchisees hold? 5. What venue relationships or support is provided? 6. How close is the nearest existing JBF franchise? 7. What marketing support is provided to attract consignors and shoppers? 8. What percentage of franchisees operate this as their primary income? 9. What technology and point-of-sale systems are required? 10. Can I speak with franchisees who have exited the system?

## Data Gaps

**Critical Missing Information:** - Specific details of disclosed litigation/bankruptcy - Reasons for elevated attrition rate - Median earnings (not just average) - Event frequency for successful franchisees - Complete Item 19 financial performance data - Franchisee satisfaction scores - Breakdown of part-time vs. full-time operators - Technology costs and requirements

**Recommended Next Steps:** 1. Request complete 2024 FDD and review Item 3 litigation disclosures thoroughly 2. Investigate reasons for 7.84% attrition rate 3. Speak with minimum 5-10 current franchisees 4. Contact exited franchisees to understand exit reasons 5. Analyze local market for existing JBF and competing events 6. Evaluate venue availability and costs in target area 7. Consult with franchise attorney regarding no-territory clause 8. Realistically assess whether earnings meet financial needs

--- *Report generated January 2025. Data sourced from public records, FDD filings, and third-party franchise research platforms. The elevated attrition rate and disclosed legal issues warrant careful due diligence before investing.*