Children’s Art Classes
Bottom line
- Total investment $134K – $264K including a $60K franchise fee.
- Average unit revenue of $139K/year. Estimated payback in 1.5 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 16 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Children’s Art Classes unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Children’s Art Classes units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$249K
on $1.2M purchase
Total debt
$997K
SBA $0.6M + senior + seller note
Overview
About
Franchisees operate art instruction centers offering classes in painting, drawing, sculpture, and crafts for children ages 3–16. Day-to-day operations include scheduling classes, managing instructors, marketing to parents, and managing facility/supply inventory. Revenue comes from class enrollment fees, art supply sales, and special events/workshops.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 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).
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage children's art franchise with undocumented financial claims, implausible profit margins, and rapid growth from minimal unit base creates moderate-to-high uncertainty around sustainability and return projections.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo Item 19 financial performance representations disclosed — cannot independently verify the $138,515 average revenue claim
- 02MINORUnusually high net income ($132,335) relative to gross revenue ($138,515) suggests 95.6% profit margin, which is unrealistic and raises data quality concerns
- 03MINORRoyalty structure creates ambiguity: $500 minimum monthly royalty means locations with <$6,061 revenue pay disproportionately high rates (8.25%+)
- 04MEDRapid unit growth (33.3% YoY) from small base (14 units) indicates early-stage system with limited operational track record and sustainability data
- 05MINORHigh initial investment range ($134K–$264K) combined with unverified financials creates significant risk exposure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
48 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Children’s Art Classes · FDD (2025) PDF