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Kidcreate Studio Franchise Costs, Fees & Profits

Kidcreate Studio Franchise Costs, Fees & Profits (2024)

Here’s what you need to know if you’re interested in opening a Kidcreate Studio franchise.

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

20

INITIAL INVESTMENT

$58,000 – $234,000 

ROYALTY FEE

8.00%
revenue

REVENUE PER YEAR

$733,000

Kidcreate Studio, established in 2007, offers a unique blend of education and entertainment through art classes, camps, and art-themed birthday parties specifically designed for children. This franchise model was born out of a need to provide more comprehensive art education to children, addressing the gaps left by many public school systems. The franchise’s founder was motivated by a personal experience, recognizing the limited art education her son was receiving at school, which led to the inception of Kidcreate Studio.

The franchise operates with a flexible business model, allowing franchisees to choose between a mobile studio option and a traditional brick-and-mortar studio. This adaptability enables the delivery of Kidcreate’s art education curriculum in various settings, reaching a broader audience. The mobile studios collaborate with community centers, schools, and other organizations to bring art classes directly to children in the community, whereas the brick-and-mortar locations serve as dedicated spaces for art education and celebrations.

Kidcreate Studio distinguishes itself from competitors by focusing solely on children’s art education, with a curriculum designed to inspire and educate young minds. This focus on art, coupled with the franchise’s commitment to filling the educational void in this area, positions Kidcreate as a leader in children’s art enrichment.

Number of locations

TOTAL UNITS
20
FRANCHISED UNITS
18

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Initial investment

INITIAL INVESTMENT
$58,000 $234,000 
Type of ExpenditureAmount
Initial Franchise Fee$45,000
Furniture, Fixtures, and Equipment$6,500 – $15,000
Initial Inventory and Supplies$3,500 – $5,500
Shipping for Unit Boxes$60 – $100
Insurance$1,000 – $2,500
Business Licenses and Permits$50 – $300
Professional Fees$1,000 – $2,500
Signage$2,500 – $12,000
Computers & Hardware$700 – $2,000
DB Software Implementation Fee$1,500 – $1,500
CR Software Implementation Fee$500 – $500
Grand Opening Promotion$1,000 – $5,000
Uniforms$100 – $200
Initial Training Expenses$2,000 – $3,000
Technology Fees For Three Months$1,500 – $1,500
CR Software Fee for Three Months$345 – $1,350
DB Software Fee for Three Months$675 – $900
Rent, Security Deposit, Utility Deposit$5,000 – $15,000
Additional Funds – Three Months$3,000 – $15,000
Construction Management Fee$0 – $13,500
Leasehold Improvements$20,000 – $80,000
Architect$1,000 – $12,000
Total Estimated Initial Investment$96,930 – $234,350

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

INITIAL FRANCHISE FEE
$45,000
ROYALTY FEE
8.00%

Initial Franchise Fee

The initial franchise fee for a single Kidcreate Business is $45,000, payable upon signing the franchise agreement. For a Standard 2 Franchise, the fee is $80,000, and for a Standard 3 Franchise, it is $110,000. This fee grants the franchisee the rights to operate a Kidcreate Business.

Opening Inventory

The opening inventory fee ranges from $500 to $3,000 for a Kidcreate On the Go Business and from $3,500 to $5,500 for a Kidcreate Studio Business. This fee covers the cost of initial inventory and supplies necessary to commence operations.

Implementation Fees

An implementation fee of $1,500 is required for Database Management Software, and an additional $500 for Class Registration Software. These fees are due upon franchise agreement signing and cover the costs associated with setting up these essential software systems for the franchise.

Technology Fee

A monthly technology fee of $500 is charged, starting from the first day of the second month after the franchise agreement is signed. This fee supports the ongoing use of online systems, website, applications, email, and other internet-related functions.

Royalty Fee

The royalty fee is the greater of 8% of Gross Sales or $500 per month. This recurring fee is due within five days after the end of each calendar month and is based on the franchise’s gross sales during the previous month.

Brand Fund Contribution

A brand fund contribution of 1% of Gross Sales is required. Like the royalty fee, this contribution is due within five days after the end of each calendar month and is used for system-wide brand promotion and building.

Local Advertising Requirement

Franchisees must meet a local advertising expenditure requirement of $500 per month per Kidcreate Business. If this requirement is not met, the franchisee must pay the difference, which will then be contributed to the Brand Fund or to the franchisor.

CR Software Fee

The CR Software Fee varies from $115 to $450 per month for each Kidcreate Business, depending on volume. This fee is for the use of Class Registration Software and is recalculated annually based on the previous year’s volume.

DB Software Fee

The DB Software Fee ranges from $225 to $300 per month for each Kidcreate Business. This fee covers the use of Database Management Software and is subject to change based on supplier cost increases.

Profits

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How to apply

1. Conduct Preliminary Research

  • Explore Kidcreate Studio’s franchise website for initial information.
  • Understand the brand’s focus on children’s art education and community impact.
  • Review the unique business models offered: brick-and-mortar studios and mobile studios.

2. Initial Inquiry and Information Gathering

  • Fill out an inquiry form on the Kidcreate Studio franchise website to express interest.
  • Receive and review the Franchise Disclosure Document (FDD) for detailed information on the franchise opportunity, including financials, support, and franchisee obligations​​.

3. Financial Qualification

  • Assess your financial readiness, considering the investment range for starting a franchise.
  • Ensure you meet the financial requirements set forth by Kidcreate Studio, such as the initial investment and liquid capital​.

4. Discovery Day and Franchise Review

  • Attend a Discovery Day event to meet the Kidcreate Studio franchise team, understand the business model deeply, and get answers to any questions.
  • Use this opportunity to assess the cultural fit and to understand the support system provided to franchisees.

5. Location Selection and Approval

  • Work with Kidcreate Studio’s real estate team to find an ideal location for your studio.
  • Consider factors such as community demographics, accessibility, and local competition​​.

6. Training and Preparation

  • Participate in Kidcreate Academy, the brand’s comprehensive training program, which includes a mix of self-study, classroom training, and on-the-job instruction​​.
  • Learn about studio operations, curriculum implementation, marketing strategies, and customer service.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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