Class 101Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Class 101 franchise requires a total initial investment of $75K – $130K, including a $40K franchise fee. Per the 2025 FDD, average unit revenue was $180K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $75K – $130K
- 19th pct Business Serv…
- Avg gross sales
- $180K
- 4th pct Business Serv…
- Royalty
- N/A
- Units
- 69
- 36th pct Business Serv…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 23% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $75K – $130K including a $40K franchise fee.
- Average unit revenue of $180K/year.
- Verdict A (Top Quintile) with a risk score of 24/100.
- System growing at 43.8% CAGR over 3 years with 69 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Class 101 Franchise, LLC
- Parent company
- Unleashed Brands, LLC
- Incorporated in
- DE
- HQ
- 2350 Airport Freeway, Suite 505, Bedford, Texas 76022
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $151K
- vs $195K prior year
Overview
About
Class 101 franchisees operate online creative education platforms (typically courses in art, design, crafts, or similar skill-based content). Day-to-day operations include course content curation, student acquisition via digital marketing, customer service, platform management, and instructor relationship coordination. Revenue is generated through student enrollment fees and subscription models.
- CEO
- Michael Browning, Jr.
- Headquarters
- TX
- Founded
- 1979
- FDD year
- 2025
- States available
- 28
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $10K | $15K |
| Equipment, build-out, other | $25K | $75K |
| Total initial investment | $75K | $130K |
Source: Class 101 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$27K
15.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $75K – $130K
- Better than avg vs category
- Liquid capital req'd
- $10K – $15K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- Greater of 8% of monthly Gross Sales or $500 per month
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $449 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $180K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 48 units
- vs category median 32
- Range (low → high)
- $7K→$707K
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 3 / 5 · typical
Compared against 360 Business Services brands
vs Business Services averages
How Class 101 Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 69
- Opened
- 15
- Last reporting year
- Closed
- 2
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +23.2%
- Net unit change last year
- 3-yr CAGR
- +43.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $25K
- Median loan
- $13K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Class 101's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Class 101 presents HIGH RISK due to active fraud/regulatory litigation, absent financial disclosure (Item 19), going concern issues, and aggressive royalty floor that may exceed profitability of average franchisees.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 24 / 100 rating
- 01HIGHActive litigation involving fraud allegations and state regulatory violations regarding franchise registration and disclosure—indicates potential FTC/state enforcement risk and franchisor credibility issues
- 02HIGHGoing Concern status is FALSE—suggests franchisor financial instability or solvency concerns that could impact support, marketing, and system viability
- 03HIGHNet Income not disclosed in FDD Item 19—prevents prospective franchisees from validating profitability claims; combined with litigation, suggests franchisor unwilling or unable to substantiate earnings
- 04MINORRoyalty floor of $500/month ($6,000 annually) is aggressive relative to average revenue of $180,293—creates cash flow strain for underperforming locations and limits franchisee flexibility
- 05HIGHUnit growth of 23.2% YoY appears strong but context missing—unclear if growth masks franchisee churn, unit consolidation, or acquisition of competitor locations; litigation suggests potential attrition
- 06HIGHHigh initial investment ($75K-$130K) combined with undisclosed profitability and litigation creates ROI validation gap—no clear path to justify capital outlay
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius/Zip Code/Geographic |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 4 |
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 12 hrs
- POS system
- Designated software applications
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Designated software applications
Item 20 · call current owners
Franchisee Contacts
72 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Class 101 · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Class 101 franchise?
The total investment to open a Class 101 franchise ranges from $75K – $130K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Class 101 franchise owners earn?
According to Item 19 of the Class 101 FDD, the average gross sales per unit is $180K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Class 101's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Class 101 (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Class 101 franchise locations are there?
As of their most recent FDD filing, Class 101 has 69 total units in the United States, including 48 franchised units and 0 company-owned units. 15 new units were opened in the latest reporting year.
Is Class 101 a good franchise to buy?
FranchiseVerdict rates Class 101 as a A-grade franchise with a risk score of 24 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.