Franchise revenues and low royalties could not sustain Gymboree's operational support costs
Joan Barnes · Gymboree: Joan Barnes. How Building a Beloved Brand Nearly Destroyed Its Founder · Jan 19, 2026 · at 34:32
Gymboree founder Joan Barnes explains why the company's early franchise model was fundamentally economically unsustainable despite rapid national expansion.
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“I realized that the franchise model was flawed. That no matter how many franchises we had, it wasn't about scale. The revenues that the franchisees generated, and therefore the percent that they would give us of their revenues, was never going to be sustainable.”
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