In this FDD Talk 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 2017 FDD

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

• Section IV – Presentation and analysis of Kidcreate Studio’s financial performance representations, based on Item 19 of the company’s 2017 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, 2016; specifically, Eden Prairie (2008-2016) and Woodbury (2013-2016)

• 2015 and 2016 annual total revenue, labor, supplies, rent and utilities, miscellaneous operating expenses, royalty fee, brand fund contribution, technology fee, and net profit for the two affiliate-owned Kidcreate Studio locations open as of January 1, 2015

Section I – Background Information

11 Things You Need to Know About the Kidcreate Studio Franchise

Targets Philadelphia and Chicago for Expansion

1.  In April 2017, Kidcreate Studio announced that it was looking to build a presence in Philadelphia, Pennsylvania. The brand said that it plans to open four locations in the city, where there are more than 110,000 children under the age of 12 (Kidcreate’s target demographic).

2.  Lara Olson, founder and CEO of Kidcreate Studio, said, “Built to teach, inspire and build self-esteem, our brand is committed to filling a void in the marketplace by using the power of art to positively influence the lives of children. Philadelphia has tremendous long term growth potential and we look forward to speaking with positive, outgoing and business savvy entrepreneurs who have a passion for not only wanting to make a good living, but make a living of doing good.”

3.  A month before Kidcreate Studio announced that it wanted to open new studios in Philadelphia, the company said that it was looking to expand into the city of Chicago, Illinois. Kidcreate Studio has plans to open seven locations in the city. The brand said that it hopes to bring its enriched arts education program to the over 260,000 children under the age of 14 residing in the city.

Newest Location Opened in North Carolina

4.  Although Kidcreate Studio has been in business for over a decade, there were only two locations opened by mid-2017. In 2016, the company started franchising and its third and newest location opened in Fayetteville, North Carolina at the end of 2017.

5.  To celebrate the grand opening of the location, Kidcreate Studio had an open house that featured free art activities. There were also free prizes for the kids as well as a contest to win free art parties, summer camps, and family memberships. In addition to the activities and giveaways, there were also several coupons available just on opening day, such as 50% off Mommy’s Time Off Classes, $50 off birthday parties, and $25 off summer camps.

6.  Kidcreate Studio Fayetteville is owned and operated by Makeeka Harris. She said, “My favorite part about owning and operating a Kidcreate Studio is seeing the joy and excitement on my students’ faces! I enjoy getting messy with them and helping them create cool projects that they go home and brag to their parents about. I enjoy a job that really focuses on children, their ideas and their own creative development.” Harris added that the most important requirement for owning a Kidcreate Studio is that “you must love children and have such a high tolerance for kid things.”

Seasonal Activities

7.  In addition to its year-round offerings, Kidcreate Studio offers several seasonal activities at its locations. At the end of November, the brand announced that it would have new holiday-themed classes. These included Christmas Cookie Making, Gift Making, Ornament Making, Christmas Clay Crafts, Silly Santas, and other Christmas-themed projects.

8.  During Thanksgiving, Kidcreate Studio uploaded a tutorial for place card art that kids could easily do at home. During the entire holiday season, there were also special mom’s group activities, including Thanksgiving, Holiday Gift Making, Christmas, Hanukkah, and New Year’s parties and classes.

Company History

9.  Kidcreate Studio was founded in 2007 by Lara Olson. A year later, Olson opened the first location in Eden Prairie, Minnesota. Olson was inspired to start her own kid-centric art studio after learning that her son was only receiving one hour of art education a week. After the success of the first Kidcreate Studio, Olson launched the On-The-Go Studio division later in 2008. A second Kidcreate Studio was opened in 2013 in Woodbury, Minnesota.

10.  In 2016, Kidcreate Studio officially launched its franchise opportunity. The company opened a new franchised studio in 2017 in Fayetteville, North Carolina. Kidcreate Studio is looking for potential franchisees across the United States.

Entrepreneur’s Franchise 500

11.  Since Kidcreate Studio has only been franchising since 2016, the company has yet to earn a spot 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 2017 FDD.

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

• Please click here for detailed information on Kidcreate Studio’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

• As of January 1, 2016, the franchisor had two affiliate-owned Kidcreate Studio locations (“Affiliate Locations”). Both of these locations are located in Minnesota.

Part 1 – Annual Gross Sales by Year

• The information in the table below is an historical financial performance representation for the two Affiliate Locations for each full calendar year that they were open from 2008 to 2016:

Gross Sales – Eden Prairie