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Snapology Franchise Costs, Fees & Profits

Snapology Franchise Costs, Fees & Profits (2024)

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

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

84

INITIAL INVESTMENT

$74,000 – $612,000 

ROYALTY FEE

7.00%
revenue

REVENUE PER YEAR

$155,000

Snapology is a prominent educational franchise that was founded in 2010 by sisters Laura and Lisa Coe, inspired by their own children’s engagement with building blocks and other connectable materials. Recognizing the educational potential in such play, they established Snapology with a mission to offer enriching classes, camps, and parties that integrate fun with learning, particularly in the areas of science, technology, engineering, art, and mathematics (STEAM).

Headquartered in Bedford, Texas, Snapology began offering franchise opportunities in 2015, rapidly expanding both within the United States and internationally. Today, it boasts over 150 locations and has been distinguished as the #1 Children’s Enrichment Franchise in 2024.

The franchise’s unique selling proposition lies in its comprehensive STEAM programs that are designed to be both educational and enjoyable, ensuring that children are actively engaged and not even aware they are learning.

Number of locations

TOTAL UNITS
84
FRANCHISED UNITS
81

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Initial investment

INITIAL INVESTMENT
$74,000 $612,000 
Type of ExpenditureAmount (Snapology Discovery Center 2.0)
Initial Franchise Fee$48,000
Construction, Leasehold Improvements, Furniture and Fixtures$110,000 – $270,000
Architectural Fees$17,000 – $22,000
Required base furniture, fixtures, and equipment$95,000 – $123,000
Optional upgraded furniture, fixtures, and equipment$0 – $8,000
Signage$3,000 – $8,000
Computer, Software and Point of Sales System$1,000 – $10,000
Program Supplies: Initial Inventory$12,000 – $30,000
Prepaid Rent and Lease Deposits$4,000 – $15,000
Utility Deposits$500 – $2,000
Insurance Deposits and Premiums$750 – $2,000
Travel and Lodging for Initial Training$500 – $2,000
Grand Opening Advertising$20,000 – $25,000
Professional Fees$750 – $2,000
Business Licenses and Permits$500 – $1,000
Office Supplies$500 – $1,000
Additional Funds – Initial period of 3 months$15,000 – $45,000
Total$328,000 – $612,000

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
$43,750
ROYALTY FEE
7.00%

Initial Franchise Fee

The initial franchise fee for Snapology is $40,000. This fee is paid as a lump sum upon signing the Franchise Agreement. This fee is fully earned upon payment and is non-refundable under any circumstances.

Royalty Fee and Minimum Royalty Fee

Franchisees are obligated to pay a continuing monthly non-refundable Royalty Fee, which is the greater of 7% of the Franchisee’s monthly Gross Sales or the applicable Minimum Royalty Fee. The Minimum Royalty Fee schedule is as follows:

  • Months 1-12: $600 per month
  • Months 13-24: $700 per month
  • Months 25-36: $800 per month
  • Months 37-48: $900 per month
  • Months 49-60: $1,000 per month
  • Months 61-120: $1,100 per month

Transfer Fee

A Transfer Fee is applied when a controlling interest (over 50%) is transferred to a new approved franchisee, which is 50% of the then-current initial franchise fee. If controlling interest is transferred to an approved existing franchisee, the fee is 25% of the then-current initial franchise fee, plus reimbursement for actual legal, professional expenses, and other costs incurred in connection with the transfer.

Relocation Fee

The Relocation Fee is 25% of the then-current initial franchise fee, payable before the transfer of the Franchised Business if requested and consented by the franchisor.

Renewal Fee

Upon renewal of the Franchise Agreement, a Renewal Fee equivalent to 25% of the then-current initial franchise fee is charged, in addition to reimbursement for legal and professional expenses and other costs incurred in connection with the renewal.

Resale Program Fee

For franchisees electing to participate in the Resale Program in connection with the sale of the Franchised Business, the fee is the greater of 4% of the purchase price paid for the Franchised Business or the then-current initial franchise fee.

Non-Sufficient Funds (NSF) and Failed Electronic Fund Transfer Fee

For NSF checks or failed electronic fund transfers, the fee is 5% of the amount or $50, whichever is greater, or the maximum fee allowed by law.

Profits

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How to apply

1. Initial Research and Discovery

  • Explore Snapology’s official website to understand the brand, its mission, and the support it offers to franchisees.
  • Review available resources, testimonials, and case studies of existing franchisees to gauge the business model’s effectiveness and fit for your goals.

2. Contact Snapology

  • Reach out to Snapology through their website’s contact form or by phone to express your interest in opening a franchise.
  • Provide your basic information and any specific inquiries regarding the franchise opportunity.

3. Participate in the Discovery Process

  • Engage in Snapology’s structured discovery process, which may include webinars, presentations, and one-on-one consultations to deepen your understanding of the business.
  • This step is crucial for both parties to assess compatibility and mutual expectations.

4. Funding and Territory Analysis

  • Discuss and plan the financial aspects, including the initial investment, ongoing fees, and potential financing options.
  • Work with Snapology to identify and analyze potential territories for your franchise, ensuring market viability and avoiding overlap with existing locations.

5. Review of Franchise Disclosure Document (FDD)

  • Carefully review the FDD provided by Snapology, which contains critical information about the franchise, including the legal and financial obligations, support structure, and operational guidelines.
  • It’s advisable to consult with a franchise attorney or advisor during this step to fully understand the terms and conditions.

6. Attend Launch Day

  • Participate in a Launch Day event, either virtually or in person, to meet the Snapology team, learn more about the day-to-day operations, and get a feel for the company culture.
  • This is an opportunity to ask detailed questions and interact with key personnel.

7. Final Franchisee and Financial Validation

  • Complete any final assessments or validations required by Snapology to ensure you are fully prepared and qualified to run a franchise.
  • This may involve credit checks, background checks, and a detailed review of your business plan and financial projections.

8. Sign Franchise Agreement

  • Upon approval, you will be presented with a franchise agreement to sign, formalizing your commitment and detailing the terms of your franchise ownership.
  • Ensure all your concerns and questions are addressed before signing the agreement.

9. Training and Support

  • Participate in comprehensive training programs covering operational procedures, educational programs, marketing strategies, and other key aspects of running a Snapology franchise.
  • Take advantage of ongoing support offered by Snapology, including marketing, curriculum updates, and operational guidance to ensure your franchise’s success.

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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