StemTree Franchise FDD, Profits & Costs (2025)
StemTree is an educational franchise specializing in science, technology, engineering, and mathematics (STEM) programs for children. Founded in 2014 by Dr. Abdelghani Bellaachia, a Ph.D. holder in Software Systems, StemTree offers a comprehensive curriculum that includes science, coding, robotics, electricity and electronics, and mathematics. The company is headquartered in Vienna, Virginia.
In 2016, StemTree began franchising, expanding its reach across the United States and internationally. As of 2024, the franchise network comprises approximately 20 units.
StemTree differentiates itself by offering a self-paced, customized program that fosters a deep understanding of STEM subjects through hands-on activities and experiments. This approach not only enhances students’ academic performance but also prepares them for future careers in high-tech industries.
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Initial Investment
How much does it cost to start a StemTree franchise? It costs on average between $93,000 – $186,000 to start a StemTree franchised center.
This includes costs for construction, equipment, inventory, and initial operating expenses. The total amount will vary depending on several factors, such as the specific location of the franchise, the size and scope of the facility, and whether the franchisee opts to lease or purchase the property. These variables can influence the overall investment required to establish the franchise.
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $44,500 |
| Training Expenses | $1,500 – $2,500 |
| Real Property | $3,000 – $8,000 |
| Property Improvements | $0 – $70,000 |
| Curriculum Related Materials | $6,000 – $8,000 |
| Administrative Supplies | $2,000 – $3,000 |
| Signage | $3,000 – $7,000 |
| Furniture and Equipment | $2,500 – $4,000 |
| Utilities | $100 – $300 |
| Market Introduction | $6,000 – $8,000 |
| Insurance | $2,500 |
| Licenses and Permits | $100 – $500 |
| Legal and Accounting | $1,500 – $2,500 |
| Dues and Subscriptions | $100 – $500 |
| Additional Funds (3 months) | $20,000 – $25,000 |
| Total | $92,800 – $186,300 |
Average Revenue (AUV)
How much revenue can you make with a StemTree franchise? A StemTree franchised business makes on average $151,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $205,000 yearly revenue for similar tutoring franchises. Below are a few StemTree competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
StemTree Franchise Disclosure Document
Frequently Asked Questions
How many StemTree locations are there?
As of the latest data, Stemtree operates 25 locations across the United States. These centers offer a range of STEM (Science, Technology, Engineering, and Mathematics) programs for children.
What is the total investment required to open a StemTree franchise?
The total investment required to open a StemTree franchise ranges from $93,000 to $186,000.
What are the ongoing fees for a StemTree franchise?
The ongoing fees for a StemTree franchise include an 8% royalty fee on gross sales and a 2% marketing fee for national and regional advertising efforts.
What are the financial requirements to become a StemTree franchisee?
To become a StemTree franchisee, the financial requirements include a minimum net worth of $500,000 and liquid capital of at least $100,000. These financial criteria ensure that potential franchisees have the resources to cover initial investment costs and support ongoing operations as they establish their franchise.
How much can a StemTree franchise owner expect to earn?
The average gross sales for a StemTree franchise are approximately $0.15 million per location. Assuming a 15% operating profit margin, $0.15 million yearly revenue can result in $23,000 EBITDA annually.
Who owns StemTree?
StemTree franchise is owned by STEMTree Learning Center, LLC. The company is led by its founders and a group of investors focused on expanding the brand and its educational services for children.
Disclaimer
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