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

Section I – Estimated initial investment (franchise costs) for a Code Wiz franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Code Wiz franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Code Wiz outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Code Wiz franchise opportunity

Section V – Presentation and analysis of Code Wiz’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2019, 2020, 2021, 2022, and partial year 2023 (January 1, 2023 to March 31, 2023) gross sales for the company-owned Code Wiz outlet in Westford, MA that was open and in operation prior to the commencement of the applicable calendar year

• 2020, 2021, 2022, and partial year 2023 (January 1, 2023 to March 31, 2023) gross sales for the franchised Code Wiz outlet in Reading, MA that was open and in operation prior to the commencement of the applicable calendar year

• 2022 and partial year 2023 (January 1, 2023 to March 31, 2023) gross sales for the franchised Code Wiz outlet in Westborough, MA that was open and in operation prior to the commencement of the applicable calendar year

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

Section I – Code Wiz Franchise Costs

• Code Wiz franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $45,000
• Construction and Leasehold Improvements:  $1,500 to $15,000
• Lease Deposits – Three Months:  $0 to $12,000
• Furniture, Fixtures, and Equipment:  $30,500 to $35,000
• Signage:  $11,200 to $13,000
• Computer Equipment:  $500 to $1,500
• Grand Opening Support:  $10,000
• Initial Marketing Expense:  $10,000 to $15,000
• Initial Instructional Equipment:  $10,300 to $18,700
• Utility Deposits:  $500 to $1,200
• Insurance Deposits – Three Months:  $500 to $1,500
• Travel for Initial Training:  $2,000 to $3,500
• Professional Fees:  $500 to $3,000
• Licenses and Permits:  $0 to $3,000
• Additional Funds – Three Months:  $27,500 to $60,000
• Total Estimated Code Wiz Franchise Costs:  $150,000 to $237,400

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

• Code Wiz’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $45,000
• Royalty:  6% of Gross Sales, subject to a Minimum Royalty Fee of $500 per month that applies only during the period beginning nine months after the signing of your Franchise Agreement and continuing through to the date on which your physical Code Wiz location is open to the public.
• Brand Development Fund:  up to 2% of Gross Sales
• Local Marketing:  $1,500 per month

Section III – Number of Franchised and Company-Owned Code Wiz Outlets

Franchised

2020

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  7
• Net Change:  +4

Company-Owned

2020

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Code Wiz Franchise

• Code Wiz Expands Across America With Innovative Franchise Opportunity

• Code Wiz Engages Kids With Robotics, Computers

• Code Wiz Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Code Wiz Franchise (Item 19, 2023 FDD)

• Business to Business means a public or private event where the Approved Services and Products are provided to a captive group at events conducted by third parties such as community organizations.

• Calendar Year refers to the period of January 1 through December 31 for each referenced year.

• Camps means a Class or a series of Classes where the Approved Services and Products are designed and scheduled to coincide with school holidays and summer vacation when students have time-off from regular and customary schooling. Students have a choice of two time slots of 9 a.m. to 12 p.m. or 1 p.m. to 4 p.m.

• Class/Classes means the regularly scheduled Classes during which Code Wiz Businesses provide the Approved Services and Products. Classes are typically held weekdays during after-school hours of between 4 p.m. and 7 p.m., on Saturdays 10 a.m. to 2 p.m., and during school holidays and summer vacations from 9 a.m. to 4 p.m. Online classes are typically held three days per week from 4 p.m. to 7 p.m.

• Company-Owned Outlet means an Outlet owned either directly or indirectly by Code Wiz, its affiliate, or any person identified in Item 2 of the Disclosure Document. A Company-Owned Outlet also includes any Outlet that is operated as a joint venture owned in part by Code Wiz, its affiliate, or any person identified in Item 2 of the Disclosure Document, or that is managed by Code Wiz, its affiliate, or any person identified in Item 2.

• Enrollments means each unique enrollment in a Class by a customer and performed by an Outlet for the performance of Approved Services and Products.

• Franchise Outlet refers to a Code Wiz Business operated under a Franchise Agreement that is not a Company-Owned Outlet.

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

• New Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that for the first time opened and commenced operations on the first day (January 1) of the Calendar Year being reported.

• Online Services means System Services and Products that are provided to customers remotely and online through web-based media and applications.

• Operational Franchise Outlet(s) means, as to a particular Calendar Year, a Franchise Outlet that was open and in operation prior to the commencement of the Calendar Year. For example, if a Franchise Outlet first opened for business in February 2021, as to the 2021 Calendar Year, the Franchise Outlet would qualify as a New Franchise Outlet and not as an Operational Franchise Outlet. If this Franchise Outlet remained in operation throughout the 2022 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2022 Calendar Year.

• Outlet means a Company-Owned Outlet or a Franchise Outlet.

• In-Person Services means Approved Services and Products that are provided to customers on-site at the retail learning center of the Outlet.

• The financial information was prepared on a basis consistent with generally accepted accounting principles during the respective calendar year periods.

• Data for the Company-Owned Outlet is based on information reported to Code Wiz by its affiliates. Data for the Franchise Outlets are based on financial information reported to Code Wiz by its franchisees.

• The information in this analysis has not been audited, is based on historical financial data, and is not a forecast or projection of future financial performance.

Part 1 – Company-Owned Outlet

• Code Wiz currently has one Company-Owned Outlet that was established in November 2017 and is located at 9 Cornerstone Square, Westford, MA. This Company-Owned Outlet operates from a retail learning center comprising approximately 1,000 square feet and is in a densely populated market.

Company-Owned Outlet Gross Sales

• 2019:  $283,000
• 2020:  $209,212
• 2021:  $340,757
• 2022:  $335,534
• 2023 Partial Year (January 1, 2023 to March 31, 2023):  $87,290

• The primary focus of the System Services and Products relates to in-person learning services provided at Code Wiz retail centers. During the 2020 Calendar Year, the global pandemic impacted the operations of this Outlet and all Outlets in the System.

• During the 2020 Calendar Year, this outlet began offering Online Services in addition to In-Person Services. In addition to modifying System Services and Products to include Online Services, as a result of pandemic related government mandated safety protocols, procedures, and requirements related to customer safety, employee safety, and the operations, this Outlet: (a) suspended offering In-Person Services for the period of March 13, 2020 to present; and (b) began offering Online Services on March 16, 2020.

Part 2 – Franchise Outlets

• This analysis contains a historic representation of financial data achieved by Code Wiz’s Operational Franchise Outlets as to each respective Calendar Year reported below.

• During the 2020 Calendar Year, Code Wiz had a total of one Operational Franchise Outlet.

• During the 2021 Calendar Year, Code Wiz had a total three Operational Franchise Outlets (one of which is not representative and is omitted from the data below).

• During the 2022 Calendar Year, Code Wiz had a total three Operational Franchise Outlets (one of which is not representative and is omitted from the data below), and four New Franchise Outlets.

• The data provided below is limited to Code Wiz’s Operational Franchise Outlets and does not include New Franchise Outlets respectively for each Calendar Year.

A. Franchise Outlet: Reading, MA

Franchise Outlet Gross Sales

• 2020 Calendar Year:  $118,603
• 2021 Calendar Year:  $257,975
• 2022 Calendar Year:  $236,339
• 2023 Partial Year (January 1, 2023 to March 31, 2023):  $56,445

• This Outlet: (a) suspended offering In-Person Services for the period of March 13, 2020 to present; and (b) began offering Online Services on March 16, 2020.

B. Franchise Outlet: Westborough, MA

Franchise Outlet Gross Sales

• 2022 Calendar Year:  $97,000
• 2023 Partial Year (January 1, 2023 to March 31, 2023):  $38,573

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

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