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

by Franchise Chatter on March 15, 2017

in Art-Related Franchise, Child-Related Franchises, FDD Talk 2017: Children's Franchises, Franchise Earnings

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

  • Section I – Background information on the Kidcreate Studio franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Kidcreate Studio franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Kidcreate Studio’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • annual gross sales by year of operation for the two affiliate-owned Kidcreate Studio locations open as of January 1, 2015; specifically, Eden Prairie (2008-2015) and Woodbury (2013-2015)
  • 2015 actual and average gross sales, labor, supplies, rent, miscellaneous operating expenses, and net profit for the two affiliate-owned Kidcreate Studio locations open as of January 1, 2015

Section I – Background Information

Helping Kids Learn with Art

Kidcreate Studio was founded in 2007 by Lara Olson. The first location opened its doors a year later in 2008 in Eden Prairie, Minnesota.

After learning that her son was only receiving one hour of art instruction per week, Olson set out to find a way to supplement his art education. Olson was unable to find a place that offered educational and kid-friendly art classes and so she decided to start her own educational and fun art studio.

The first Kidcreate Studio was an immediate success and with encouragement from friends and family, Olson opened a second location in 2013 in Woodbury, Minnesota. Olson knew that there were other kids who needed supplemental art education and decided to franchise in 2015.

As of today, the two Minnesota locations are the only Kidcreate Studios open. However, the company is actively looking for franchisees throughout the United States.

Plans for Expansion

In late 2016, Kidcreate Studio announced that the company had plans to open 100 locations in the next few years. The company is looking for franchisees who are business-minded and passionate about art and education. Kidcreate Studio hopes to open locations all throughout the country.

The company hopes that its low initial investment, which ranges from $92,800 to $198,500 (inclusive of the $39,000 franchise fee), will attract numerous franchisees.

In early 2017, Kidcreate Studio announced that Chicago is one of the first areas it wants to develop. The company said that there are seven locations in development for the Chicago area. According to founder and Chief Creative Officer, Lara Olson, “Chicago has tremendous long term growth potential.”

Business Model Consists of Four Revenue Streams

Kidcreate Studio’s business model consists of four different revenue streams: art parties, On-The-Go classes, studio classes, and retail sales.

With Kidcreate’s art parties, any event can be celebrated, including birthdays. Each studio customizes the party to meet the child’s interests. The art project can even be matched to any theme a customer may have. All children attending the party will be able to take home their project. In addition to teaching the children how to make the project, Kidcreate’s staff will clean up the mess.

If customers would rather hold an event at an off-site location, Kidcreate offers On-The-Go classes. Kidcreate will supply the curriculum, teachers, supplies, and clean up at the location.

In addition to hosting events, Kidcreate offers several different classes. There are weekly classes, holiday themed classes, summer camps, and special one-time workshops.

Not only does Kidcreate offer several different classes and parties, but each studio also sells merchandise. Craft kits, art supplies and books, and Kidcreate apparel are available at each location.

Never Ranked on Entrepreneur’s Franchise 500

As a very young and small franchise, Kidcreate Studio has not yet ranked on Entrepreneur’s annual Franchise 500 list.

Section II – Estimated Costs

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

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

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