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FDD Talk: Abrakadoodle Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Published on January 15, 2019 by Franchise Chatter Leave a Comment
in Art-Related Franchise, Child-Related Franchises, FDD Talk: Children's Franchises, Franchise Earnings

Abrakadoodle Photo by bruce.lande



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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 2018 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 2018 FDD
  • Section IV – Number of franchised and company-owned Abrakadoodle outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
  • Section V – Presentation and analysis of Abrakadoodle’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
  • 2017 average, high, low, and total gross sales for the top third, middle third, and bottom third of the 20 franchise owners, representing 25 franchise units, who had franchise units in operation for at least 24 months

Section I – Background Information

12 Things You Need to Know About the Abrakadoodle Franchise

Signs Newest International Master Franchise Agreement for Australia

1.  In mid-October 2018, Abrakadoodle announced that Denise Wang and Chris Li were launching their Abrakadoodle art education master franchise in Sydney, Australia. Experienced with franchising, Wang and Li successfully brought the My Gym franchise to Sydney in 2017. The husband and wife duo said that they view Abrakadoodle as the top global brand in visual arts education.

America's Most Lucrative Franchises of the Year

2.  Abrakadoodle Australia will deliver a wide range of art programs to include after-school art classes, camps, workshops, special events, and parties, as well as via partnerships with schools and other community sites. Wang and Li will initially provide Abrakadoodle programs in a studio within their My Gym location but plan to launch a separate Abrakadoodle Art Studio in the coming months.

3.  Once programs are successfully launched in Sydney, Wang and Li plan to expand in Australia by offering sub franchise opportunities.

4.  Rosemarie Hartnett, CFE, co-founder and president of Abrakadoodle, said, “We are very pleased to welcome Denise and Chris to our award-winning, global Abrakadoodle family. With their business acumen and franchise experience, as well as Denise’s passion for the visual arts, they are well-positioned to develop a vibrant program to bring high quality art programs to benefit Australians.”

Launches New Back-to-School Programs

5.  At the beginning of September 2018, just in time for the new school year, Abrakadoodle announced that it was gearing up to deliver STEAM innovation and more via its Academic Art programs, after-school art enrichment classes, in-school arty field trips, and seasonal camps.


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6.  Abrakadoodle also launched masterful art programs for its preschool students in which young children will create art inspired by such masters as Vincent van Gogh, Jasper Johns, and Frida Kahlo. Preschoolers will explore all things artistic through puzzles, printing, painting, paper projects, and more. Abrakadoodle’s new art lessons will combine with the award-winning art education company’s curricular library to spark kids’ imaginations while building valuable skills.

7.  Rosemarie Hartnett, co-founder and president of Abrakadoodle, said, “I am so pleased to launch our 2018 back-to-school programs with the addition of our newest STEAM Innovators program that will inspire student learning and inventive creations with science, technology, engineering and math based upon some of history’s brilliant innovators, such as Leonardo Da Vinci, Gutenberg and Jacques Cousteau. We know that art can really help kids to feel confident and positive about their education, and Abrakadoodle art is designed to help students develop creativity, problem-solving skills and so much more.”

Sends Team to National Charter Schools Conference in Austin, Texas

8.  At the beginning of June 2018, Abrakadoodle announced that it was sending a team of educational leaders, including its president and co-founder Rosemarie Hartnett, to Austin, Texas for the National Charter Schools Conference from June 17 to 20.

9.  Abrakadoodle participated in the conference as an exhibitor and had meetings with existing and potential charter school and business partners. The company also recorded a podcast for its new “Artful Leadership Series,” with the first episode dedicated to Abrakadoodle’s charter school partnerships. Abrakadoodle also shared its charter school success stories at the company’s booth during the conference.

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Company History

10.  Abrakadoodle was founded in 2002 by Mary Rogers and Rosemarie Hartnett in Northern Virginia. The business started out as a comprehensive art program that Rogers and Hartnett offered at schools and community sites in their local area. Both Rogers and Hartnett felt that there was a void in comprehensive children’s visual art education that also fosters a child’s imagination. The Abrakadoodle program was a hit and in 2004, Rogers and Hartnett started franchising the concept.

11.  In 2016, Abrakadoodle was acquired by Mega Education, an international education company focused on bringing only the highest quality educational concepts to children. Since then, Abrakadoodle has continued to grow both nationally and internationally. There are now Abrakadoodle locations in six countries.

Entrepreneur’s Franchise 500

12.  Abrakadoodle did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Abrakadoodle franchise costs, based on Item 7 of the company’s 2018 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 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

  • Outlets at the Start of the Year:  42
  • Outlets at the End of the Year:  40
  • Net Change:  -2

2016

  • Outlets at the Start of the Year:  40
  • Outlets at the End of the Year:  37
  • Net Change:  -3

2017

  • Outlets at the Start of the Year:  37
  • Outlets at the End of the Year:  40
  • Net Change:  +3

Company-Owned

2015

  • Outlets at the Start of the Year:  2
  • Outlets at the End of the Year:  2
  • Net Change:  0

2016

  • Outlets at the Start of the Year:  2
  • Outlets at the End of the Year:  2
  • Net Change:  0

2017

  • Outlets at the Start of the Year:  2
  • Outlets at the End of the Year:  2
  • Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

  • On December 31, 2017, Abrakadoodle had 34 franchise owners representing 40 franchise units. Of those franchise owners, 8 had been operating franchise units for less than 24 months, 6 had been inactive (2 for personal reasons and 4 because they had less than 12 months of reported revenue greater than zero), and 20 had been operating franchise units for at least 24 months.
  • The following information is based on Gross Sales reports submitted by the 20 franchise owners, representing 25 franchise units, who had franchise units in operation for at least 24 months:

Gross Sales

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