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

Section I – Estimated initial investment (franchise costs) for a Snapology franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Snapology franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Snapology outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Snapology franchise opportunity

Section V – Presentation and analysis of Snapology’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2019, 2020, and 2021 average, median, highest, and lowest gross sales for the full-time mobile Snapology franchise outlets that: (a) prior to the commencement of the reported calendar year, were open and in operation for at least 12 months; and (b) were open and in operation at the start of the calendar year being reported and remained open and in operation throughout the reported calendar year

Section VI – Key ratios, comparables, computations, and analyses for the Snapology franchise opportunity (exclusive content for Platinum subscribers)

Section I – Snapology Franchise Costs

• Snapology franchise costs, based on Item 7 of the company’s 2022 FDD:

Mobile Snapology

• Initial Franchise Fee:  $40,000
• Signage:  $500 to $1,000
• Computer, Software, and Point-of-Sales System:  $900 to $6,000
• Program Supplies: Initial Inventory:  $12,000 to $20,000
• Insurance Deposits and Premiums:  $1,000 to $1,600
• Travel and Lodging for Initial Training:  $500 to $2,000
• Grand Opening Advertising:  $10,000 to $15,000
• Professional Fees:  $750 to $1,500
• Business Licenses and Permits:  $0 to $500
• Office Supplies:  $500 to $1,000
• Additional Funds – Initial Period of 3 Months:  $7,500 to $15,000
• Total Estimated Mobile Snapology Franchise Costs:  $73,650 to $103,600

Discovery Center 2.0

• Initial Franchise Fee:  $47,500
• Construction, Leasehold Improvements, Furniture, and Fixtures:  $76,000 to $165,000
• Architectural Fees:  $16,700 to $22,000
• Required Base Furniture, Fixtures, and Equipment:  $79,120 to $115,310
• Optional Upgraded Furniture, Fixtures, and Equipment:  $0 to $28,570
• Signage:  $3,000 to $5,000
• Computer, Software, and Point-of-Sales System:  $1,400 to $7,000
• Program Supplies: Initial Inventory:  $11,200 to $20,000
• Prepaid Rent and Lease Deposits:  $4,000 to $8,000
• Utility Deposits:  $500 to $1,800
• Insurance Deposits and Premiums:  $750 to $1,500
• Travel and Lodging for Initial Training:  $500 to $2,000
• Grand Opening Advertising:  $20,000 to $25,000
• Professional Fees:  $750 to $1,500
• Business Licenses and Permits:  $500 to $1,000
• Marketing and Office Supplies:  $500 to $1,000
• Additional Funds for Initial Period of 3 Months:  $15,000 to $45,000
• Total Estimated Snapology Discovery Center 2.0 Franchise Costs:  $277,420 to $497,180

Section II – Snapology’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Snapology’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $40,000 for Mobile Snapology; $47,500 for Discovery Center 2.0
• Royalty Fee:  7% of Gross Sales but subject to the following Minimum Monthly Royalty Fee Requirement: months 1-12: $600 per month; months 13-24: $700 per month; months 25-36: $800 per month; months 37-48: $900 per month; months 49-60: $1,000 per month; months 61-120: $1,100 per month
• National Advertising Fund (NAF) Contribution:  up to 5% of monthly Gross Sales; currently 1% of monthly Gross Sales or $100 per month, whichever is greater
• Local Marketing Expenditure:  up to 6% of monthly Gross Sales; currently 6% of monthly Gross Sales
• Advertising Cooperative (if established):  amount determined by majority vote of cooperative members

Section III – Number of Franchised and Company-Owned Snapology Outlets

Franchised

2019

• Outlets at the Start of the Year:  44
• Outlets at the End of the Year:  63
• Net Change:  +19

2020

• Outlets at the Start of the Year:  63
• Outlets at the End of the Year:  72
• Net Change:  +9

2021

• Outlets at the Start of the Year:  72
• Outlets at the End of the Year:  69
• Net Change:  -3

Company-Owned

2019

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

2020

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

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

Section IV – News Updates on the Snapology Franchise

• Snapology Named Among the Fastest-Growing Franchises of 2023 by Entrepreneur

• Snapology Franchisee Expands Territory with STEM Brand, Adds Second Unleashed Brands Company to Portfolio

• Unleashed Brands Experiences Record Growth and Expansion in 2022, Unveils Plans for Continued Momentum in 2023

• Category-Leading Franchise Brands Urban Air Adventure Park and Snapology Team Up to Open 10 New STEAM Learning Centers Inside Family Entertainment Centers

• The Little Gym and Snapology Debut First-of-its-Kind Joint Children’s Discovery Center and Gym

• Q1 Franchise Signings Showcase Strength of Unleashed Brands

• Snapology Signs 19 Franchise Deals in Past Four Months, Fueling Company Growth as Part of Unleashed Brands

• Snapology Ranked No. 321 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Snapology Franchise (Item 19, 2022 FDD)

Definitions and Notes

• Company-Owned Outlet means a Snapology Business owned either directly or indirectly by the franchisor, its affiliate, or any person identified in Item 2 of the Disclosure Document.

• Franchise Outlet(s) means a Snapology Business operated in one or more territories under a single franchise or license agreement that is not a Company-Owned Outlet.

• Gross Sales means the total revenue derived by each Snapology Business less sales tax, discounts, allowances, and returns.

• Mobile Snapology means a Snapology Business that offers and provides System Products and Services on a mobile basis at Third-Party Sites, such as schools, community centers, and commercial locations, that are authorized by Snapology and that are located within the franchisee’s Protected Area. Within this Item 19, Snapology identifies two types of Mobile Snapologies:

• i. Full-Time Mobile Snapology, as reported to Snapology by the franchisee, the franchisee owner dedicates 32 hours or more per week to the operations of the Mobile Snapology Business.
• ii. Part-Time Mobile Snapology, as reported to Snapology by the franchisee, the franchisee owner dedicates fewer than 32 hours per week to the operations of the Mobile Snapology Business.

• Snapology Discovery Center 1.0 means a Snapology Franchised Business that is established and operated from a permanent, retail storefront offering and providing System Products and Services on-site, at the location of the Discovery Center 1.0.

• A Snapology Business that operates as a Snapology Discovery Center may, in addition to operating the Discovery Center, also offer and provide System Products and Services on a mobile basis at Third-Party Sites within the franchisee’s Protected Area. Snapology Discovery Center 1.0 is no longer offered under the current Disclosure Document, and there are no Snapology Discovery Centers 2.0 that are open.

• Snapology Classroom means a Snapology Franchised Business that is established and operated within an Urban Air Adventure Park.

• Data for Snapology’s Franchise Outlets is based on financial information reported to Snapology by its franchisees for the purpose of determining and calculating royalty fees due to it and financial performance. The information reported in this analysis has not been audited, and is based on historical financial data.

Franchise Outlets

• This analysis contains a historic representation of Gross Sales data achieved by Snapology’s Franchise Outlets operated as a Full-Time Mobile Snapology. Snapology only included data for Franchise Outlets that: (a) prior to the commencement of the reported calendar year, were open and in operation for at least 12 months; and (b) were open and in operation at the start of the calendar year being reported and, that remained open and in operation throughout the reported calendar year.

• Snapology does not report any results for Snapology Businesses operated as a Company-Owned Outlet, Part-Time Mobile Snapology, Snapology Discovery Center 1.0 (no longer offered in the Disclosure Document), Discovery Center 2.0 (no outlets yet open), or Snapology Classrooms (no outlets open as of December 31, 2021).

• Over the past number of years, Snapology awarded Protected Areas that, in almost all instances, are larger than the Protected Areas offered and available to you in the current Disclosure Document. Snapology also authorized some franchisees to operate in multiple Protected Areas.

• Within this Item 19, Snapology does not identify or distinguish Franchise Outlets based on the size of the Franchise Outlets’ Protected Areas or whether or not the Franchised Outlets operated in multiple Protected Areas.

2019 Calendar Year Gross Sales

• Average Gross Sales:  $90,011
• Median Gross Sales:  $87,288
• High Gross Sales:  $141,125
• Low Gross Sales:  $31,990
• Number of Locations:  18
• Number and Percentage of Locations Above Average:  8 / 44%

2020 Calendar Year Gross Sales

• Average Gross Sales:  $48,186
• Median Gross Sales:  $41,805
• High Gross Sales:  $117,870
• Low Gross Sales:  $9,314
• Number of Locations:  16
• Number and Percentage of Locations Above Average:  6 / 38%

2021 Calendar Year Gross Sales

• Average Gross Sales:  $157,523
• Median Gross Sales:  $121,795
• High Gross Sales:  $578,027
• Low Gross Sales:  $45,021
• Number of Locations:  18
• Number and Percentage of Locations Above Average:  5 / 28%

• During the 2019 calendar year, Snapology had, in total, 18 Full-Time Mobile Snapology Businesses and 23 Part-Time Mobile Snapology Businesses that were open and in operation throughout the 2019 calendar year, out of a total of 64 Mobile Snapology franchised locations. Snapology excludes from its results the performance of 23 Part-Time Mobile Snapology locations and 17 Full-Time Mobile Snapology locations that did not operate for a full 12 months.

• During the 2020 calendar year, Snapology had, in total, 16 Full-Time Mobile Snapology Businesses and 28 Part-Time Mobile Snapology Businesses that were open and in operation throughout the 2020 calendar year, out of a total of 72 Mobile Snapology franchised locations. Snapology excludes from its results the performance of 28 Part-Time Mobile Snapology locations and 16 Full-Time Mobile Snapology locations that did not operate for a full 12 months.

• During the 2021 calendar year, Snapology had, in total, 18 Full-Time Mobile Snapology Businesses and 22 Part-Time Mobile Snapology Businesses open and in operation throughout the 2021 calendar year, out of a total of 69 Snapology franchised locations. Snapology excluded from its results the performance of 22 Part-Time Mobile Snapology locations and 22 Full-Time Mobile Snapology locations that did not operate for a full 12 months.

• During the 2020 calendar year, as to the reported Full-Time Mobile Snapology Businesses: 4 were closed due to Covid-19 for 3 months or less in 2020; 9 were closed due to Covid-19 between 3 and 6 months; 1 was closed due to Covid-19 between 6 and 9 months; and 2 were dark and did not offer any online programming for longer than 9 months.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Snapology Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️