FDD Talk 2016: The Drama Kids Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2016 post, you’ll learn the following:

• Section I – Background information on the Drama Kids franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Drama Kids franchise, based on Item 7 of the company’s 2016 FDD

• Section III – Presentation and analysis of Drama Kids’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:

• 2015 average, high, and low gross sales for the full calendar year for the top third, middle third, and bottom third of the 36 Drama Kids franchises that have been operating for over one year on a full time basis (i.e. holding at least five classes per week during the school year months of September through May)

• 2015 average, high, and low gross sales for the full school year (September through May) for the top third, middle third, and bottom third of the 36 Drama Kids franchises that have been operating for over one year on a full time basis

• 2015 average, high, and low student enrollments during the school year for the top third, middle third, and bottom third of the 36 Drama Kids franchises that have been operating for over one year on a full time basis

• 2015 average, high, and low number of classes per week during the school year for the top third, middle third, and bottom third of the 36 Drama Kids franchises that have been operating for over one year on a full time basis

Section I – Background Information

It was back in 1985 that popular television actress Helen O’Grady in Perth, Australia, started offering acting classes to students after school as a way to develop both performance and social skills. Both parents and students loved her approach, prompting her to open a total of 24 additional locations.

Having honed her methods, she formed a company to start franchising the concept both in Australia and internationally as The Helen O’Grady Children’s Drama Academy. The first U.S. location was established in 2000 with the name Drama Kids International.

The chain’s offerings follow the academic calendar, giving kids of all ages the chance to develop stage performance skills in weekly one-hour sessions. The programming year ends with a performance that friends and family can attend to see how the students have developed.

The number of U.S. locations exceeded 50 for the first time back in 2010 and currently stands at 54, with another 147 locations scattered around the world in New Zealand, South Africa, Southeast Asia, and Europe.

With its tag line of The Difference is Dramatic, here’s how Drama Kids keeps children and the youth occupied with plenty of drama in the kids after-school activities market:

Leveraging the Power of Drama

There’s nothing quite like getting kids to perform on stage in a theatrical production to give them all kinds of skills that serve them well both on the stage and off. Participating students gain confidence and self-esteem, while developing their creative thinking, acting, public speaking, leadership, and teamwork skills. Students who participate in the arts are known to get better scores on standardized academic tests, and do better outside the classroom as well.

Something for Everyone

Whether children are toddlers, kids, tweens, or teens, the Helen O’Grady Children’s Drama Program offers classes geared towards their age. Whether a child is already bold and outspoken or shy and quiet, Drama Kids programs help the former focus and the latter blossom so everyone develops to their full potential.

A Winning Curriculum

The original curriculum developed by Helen O’Grady is a proprietary, copyrighted repository of lessons designed to be both fun and fast-paced to get kids out of their heads and into their imaginations, delivered by highly qualified and trained instructors.

It doesn’t matter when a child enrolls; they’ll be able to jump right in and participate.

Specialty Programming

Drama Kids recently rolled out a new initiative designed to bolster anti-bullying efforts at schools, called ACT UP! To Stop Bullying. Focused on kids in grades 3-5, it makes use of all kinds of fun drama activities, role-playing, and discussions to teach kids how to recognize bullying and what to do about it.

Off-Year Programming

When parents are figuring out what to do with their kids during summer and holiday school breaks, Drama Kids offers a solution in the form of week-long camp programs in both half-day and full-day options.

A Flexible Franchise

Franchisees can partner with schools, typically through their parent groups, to offer in-school programming, but can also offer after-school programming both at schools or in community centers and other local venues.

Section II – Estimated Costs

• Please click here for detailed estimates of Drama Kids franchise costs, based on Item 7 of the company’s 2016 FDD.

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis