Updated September 27, 2020.
Detailed Estimates of Abrakadoodle Franchise Costs Based on Item 7 (Estimated Initial Investment) of Abrakadoodle’s 2020 Franchise Disclosure Document
- Neither Abrakadoodle nor any affiliate offers direct or indirect financing to you for any expenditure. Except for deposits, all fees are generally non-refundable.
1. Initial Franchise Fee: $25,400 to $38,899
- The low amount is for a standard territory, which is defined as an area with up to 20,000 qualifying households for a local territory.
- The high amount is for a local territory with 29,999 additional qualifying households (calculated at $0.45 per qualifying household above 20,000 for a local territory).
- At Abrakadoodle’s option, the initial franchise fee may be $1,000 lower for a standard local territory if you already operate a similar business or have been employed for a period of at least 1 year by an Abrakadoodle business.
- The initial franchise fee may be 10% lower if you are a qualified veteran.
- For the initial franchise fee, you receive Quick Start Training and Business Development Training, as well as complete sets of current curriculum, marketing and promotional materials (all on Abrakadoodle’s Intranet), sample products, and the loan of all operational manuals.
2. Prepaid 6 Months of Minimum Continuing Franchise Fee, Class Management Program Fees, and Technology Fees: $3,738
- This amount represents prepayment of the minimum continuing franchise fees, class management program fees, and technology fees for your 1st 6 months of operation.
- After your 1st 6 months of operation (deemed to start 30 days after you complete initial training), you will pay continuing franchise fees, class management program fees, and technology fees monthly.
3. Initial Materials Fee: $5,000
- You will receive 4 sets of teacher art class materials, along with additional art supplies and an initial supply of marketing materials.
4. Advertising Fee: $600
5. Additional Materials and Office Supplies (stationery, business cards, brochures, marketing materials, on-line service, telephone service with voice mail, paper, etc.) (for 1st 6 months): $1,000 to $3,850
6. 1 Laptop Computer (per Abrakadoodle’s current specifications for initial laptop computer): $0 to $2,200
7. 1 Digital Camera: $0 to $200
8. 1 Color Printer: $0 to $100
9. Travel, Lodging, and Meals for Business Development Training (per person): $1,000 to $2,000
10. Business Development Training Fees (per person): $0 to $3,500
- The fee for training you and up to 1 other person is included in the initial franchise fee. You may choose to send more than 2 trainees to Business Development training, if you pay Abrakadoodle a training fee of $3,500 per additional trainee.
11. Business License, Permits, Etc.: $50 to $100
12. Insurance (for 1st 6 months): $300 to $750
- You must acquire and maintain insurance according to Abrakadoodle’s specifications. Currently, you must maintain comprehensive general liability insurance with a limit of at least $1 million. An estimated annual premium for that insurance is $350 to $750.
- In addition, you must maintain automobile liability insurance with a $500,000 combined single limit or a $250,000/$500,000 split limit, and workers’ compensation or similar insurance as required by law on all employees. An estimated annual premium for workers’ compensation insurance is $200 to $400, based on estimated premium rates of $0.50 to $1.00 per $100 of salary paid.
13. Additional Funds (for 1st 6 months): $1,000 to $3,000
- You may need these additional funds to operate the franchised business during its 6-month initial period to cover operating expenses that are in excess of typical startup revenues.
- These expenses may include marketing, promotions, travel, office supply, printing and telephone expenses, advertising and promotional contributions, and annual conference.
- Abrakadoodle estimates that you can expect to put additional cash into the business during the initial period, but it cannot estimate or promise when, or whether, you will achieve positive cash flow or profits.
- Abrakadoodle has not provided for capital or other reserve funds necessary for you to reach “break even,” “positive cash flow,” or any other financial position.
14. Estimated Initial Investment Assuming No Commercial Office: $38,028 to $63,937
- You are not required to lease or purchase a commercial office or an art studio location for the conduct of your business. However, if you choose to maintain a commercial office and/or art studio, Abrakadoodle must approve your proposed lease or purchase agreement and the appearance of the proposed office and/or art studio.
- All furniture, fixtures, decorations, and general appearance of the space must comply with the requirements set forth in Abrakadoodle’s Operations Manual.
- Many variables, including region, neighborhood, condition, and size will affect the cost of a commercial office and/or art studio, and Abrakadoodle cannot estimate these costs.
- Abrakadoodle has relied on its president’s experience of more than 20 years in the children’s education business to compile these estimates. These figures are only estimates.
- The total estimated initial investment necessary to begin operation of an Abrakadoodle regional territory franchise ranges from $51,528 to $81,938.