FDD Talk: What You Need to Know About the Abrakadoodle Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

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

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

• Section II – Estimated initial investment for an Abrakadoodle franchise, based on Item 7 of the company’s 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Abrakadoodle franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Abrakadoodle’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:

• 2016 average, high, low, and total gross sales for the top third, middle third, and bottom third of the 17 franchise owners, representing 22 franchise units, who had franchise units in operation for at least 24 months

Section I – Background Information

10 Things You Need to Know About the Abrakadoodle Franchise

Welcomes New Master Franchise Owners in Mexico

1.  In early November, Abrakadoodle announced that it had just signed a new international master franchise agreement with Mariana Igartua and Jose Andres Ferraez Quintanilla of Mexico. Quintanilla and Igartua will be launching their first Abrakadoodle program in Mexico City in early 2018. The business partners have experience with franchising and were responsible for launching LUSH Cosmetics in Mexico.

2.  Igartua said that she and Quintanilla wanted to bring Abrakadoodle to their country because they “wanted a meaningful business to make the world better.” She also said that she sees Abrakadoodle as a means to improve education in Mexico with comprehensive art education that builds creativity, critical thinking skills, and more importantly, innovation.

3.  Rosemarie Hartnett, CFE, president and co-founder of Abrakadoodle, Inc., said, “We are very pleased to welcome Mariana and Andres to our award-winning, global Abrakadoodle family. With their franchise experience and Mariana’s background in promoting cultural and social projects enriching many audiences, including children, they are well-positioned to develop a vibrant program to bring high-quality art programs to benefit culturally rich Mexico City.”

Welcomes New Master Franchise Owners in Singapore

4.  In late March, Grace Low and Eric Lim acquired the master franchise for Abrakadoodle Singapore. The husband and wife team purchased the business, which currently operates two Abrakadoodle art studios in the country. Low and Lim come to the company with franchise and business experience – they have owned and operated the master franchise for My Gym Singapore for the last 10 years.

5.  According to Low, they will be launching the Abrakadoodle program at their seven My Gym locations and then find franchisees to run additional locations around Singapore. Lim added, “We see a lot of synergy between My Gym and Abrakadoodle as they share a similar set of customers. We feel that My Gym provides children with physical and cognitive skills development, while Abrakadoodle builds cognitive skills and creativity through arts education.”

Awarded Silver Honors at Franchising Gives Back Event

6.  On September 11, Abrakadoodle was honored at the third annual Franchising Gives Back event hosted by the International Franchise Association (IFA). The annual event recognizes franchise companies’ charitable programs and the impact they have on their communities. The IFA Franchise Education and Research Foundation selected winners in five categories: Spirit of Franchising, Newcomer, Enduring Impact, Support Our Veterans, and Innovation and Impact. Abrakadoodle received the silver medal in the Innovation and Impact category.

7.  Abrakadoodle’s president Rosemarie Hartnett and Margaret Cornwell, co-owner of Abrakadoodle-Montgomery, Alabama, accepted the $1,000 prize, which went to The Brantwood Children’s Home, Abrakadoodle of Montgomery’s charitable partner.

Company History

8.  Abrakadoodle was founded in 2002 by Mary Rogers and Rosemarie Hartnett in the Northern Virginia area. Rogers and Hartnett developed an innovative and comprehensive art education program that they named Abrakadoodle and launched the program at schools and community sites in Northern Virginia.

9.  Abrakadoodle helps fill the hole left by schools cutting back on art programs through its solid educational principles, great teaching practices, stimulating activities, and high-quality materials. The company started franchising in 2004 and today, there are over 350 locations across six countries.

Entrepreneur’s Franchise 500

10.  Abrakadoodle has ranked on Entrepreneur’s annual Franchise 500 list a few times in the past 10 years. The company’s highest rank was No. 346 in 2010, while its lowest rank was No. 498 in 2015. It has not appeared on the list since then.

Section II – Estimated Costs

• Please click here for detailed estimates of Abrakadoodle franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Abrakadoodle’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

• On December 31, 2016, Abrakadoodle had 32 franchise owners representing 37 franchise units. Of those franchise owners, 7 had been operating franchise units for less than 24 months, 8 had been inactive (4 for personal reasons and 4 because they had less than 12 months of reported revenue greater than zero), and 17 had been operating franchise units for at least 24 months.

• The following information is based on Gross Sales reports submitted by the 17 franchise owners, representing 22 franchise units, who had franchise units in operation for at least 24 months:

Gross Sales

Top 33% of Franchise Owners