FranchiseVerdict
ABRAKADOODLE logo
FV-00056·MODERATEExcellent91

Abrakadoodle

Education - Tutoring & Test PrepFranchising since 2004Website
Investment
$39K – $83K
8th pct Tutoring & Te…
Avg revenue
$179K
0th pct Tutoring & Te…
Royalty
8.0%
27th pct Tutoring & Te…
Units
37
54th pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $39K – $83K including a $25K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $179K/year (median $114K).
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Abrakadoodle, Inc.
Parent company
Mega Education, Inc.
Incorporated in
Virginia
HQ
100 Carpenter Drive, Suite 100, Sterling, VA 20164
Auditor
JM&M
Audited financials
Franchisor revenue
$877K
vs $856K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one ABRAKADOODLE unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $178,834
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $39K–$83K
Working capital
$
FDD reports $1K–$3K

Unlevered ROIC · per unit

40%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$25K
EBITDA margin
14.0%
Total invested
$63K
Payback
30 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 ABRAKADOODLE units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$250K

on $1.3M purchase

Total debt

$1.0M

SBA $0.6M + senior + seller note

Overview

About

Abrakadoodle franchisees operate art and creative education studios serving children through classes, camps, and workshops. Day-to-day operations include teaching art instruction, managing student enrollment, scheduling classes, handling parent communications, and managing facility operations. Revenue typically comes from class tuition, private lessons, birthday parties, and seasonal camps.

CEO
Alice Wang
Founded
2003
FDD year
2024
States available
16

Item 7 · what it costs

The Vitals

Total investment
$39K – $83K
All-in to open one unit
Liquid capital
$1K – $3K
Cash you must have on hand
Franchise fee
$25K
Royalty
8.0%
8% of Gross Sales · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
58.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$179K
Per unit, per year
Median gross sales
$114K
Item 19 type
Gross Sales
Sample size
22 units
vs category median 12
Range (low → high)
$15K$731K
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank0th
vs Education - Tutoring & Test Prep peers
Investment cost rank8th
Lower investment ranks lower (better)
Royalty rate rank27th
Lower royalty = lower percentile (better)
Unit count rank54th
vs Education - Tutoring & Test Prep peers
Risk score rank54th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
37
Opened
3
Last reporting year
Closed
2
Turnover rate
5.4%
Company-owned
2
Corporate units in the system
% franchised
95%
vs corporate-owned
Net growth (yr3)
+2.9%
Net unit change last year
3-yr CAGR
+6.1%
Compounded over last 3 years
2022
35+1
Franchised units
2023
34
Franchised units
2024
33
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 16 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
7
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

A stagnant, non-growing system with hidden profitability metrics and franchisor solvency concerns presents material risk despite low unit count and absent litigation.

Score breakdown · what drove the 62 / 100 rating

  1. 01HIGHGoing Concern status is False — franchisor may have financial instability or solvency issues
  2. 02MEDNet Income not disclosed in Item 19 — inability to assess actual profitability despite $178.8K avg revenue
  3. 03MINORMinimal system growth of only 2.9% YoY with just 37 units — indicates stagnant or contracting franchise system
  4. 04MINORHigh royalty rate of 8% combined with $25.4K franchise fee creates significant profit headwinds for franchisees
  5. 05MINORWide investment range ($38.7K–$82.5K) suggests inconsistent unit economics or undefined startup requirements

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Zip codes and/or county boundaries
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Virginia

Item 11

Training & Operations

Classroom training
50 hrs
On-the-job training
50 hrs
POS system
JackRabbit
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

32 numbers

Locked
(301) 404-••••
MD
(703) 538-••••
VA
(504) 544-••••
LA

One-time purchase · CSV download · Validation questions included

FDD download

ABRAKADOODLE · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above