Code Ninjas Franchise Cost, Revenue & Review 2026
- Investment
- $174K – $266K
- Disclosed sales
- $237K
- gross sales, not profit
- SBA charge-off
- 15.6%
- on 147 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Code Ninjas is a kids' education franchise teaching coding and game-building to children ages 7 to 14 through a game-based curriculum. Franchisees run a learning center managing enrollment, instructors, and camps and events.
FranchiseVerdict summary · 2026
A Code Ninjas franchise requires a total initial investment of $174K – $266K, including a $35K – $45K franchise fee and an ongoing 8.3% royalty[2]. Per the 2026 FDD, average unit revenue was $237K[2]. SBA 7(a) loans show a 15.6% charge-off rate across 147 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $174K – $266K
- 45th pct Education
- Avg gross sales
- $237K
- 6th pct Education
- Royalty
- 8.3%
- 61st pct Education
- Units
- 245
- 73rd pct Education
- SBA charge-off
- 15.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $174K – $266K including a $35K franchise fee, 8.3% ongoing royalty.
- RETURNSAverage unit revenue of $237K/year (median $217K).
- RISKVerdict C (Average), verdict score 41/100 (higher is better). SBA loan charge-off rate of 15.6% across 147 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -1 franchised outlets in the latest year (14 opened, 15 closed); 29 signed but not yet open (Item 20).
- DECLINESystem contracting at -9.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Code Ninjas, LLC
- Parent company
- Code Ninjas Holdings LLC
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- Eagle Merchant Partners
- FDD Item 1, page 8 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Navin Gurnaney
- Incorporated in
- TX
- HQ
- 3500 Parkway Lane, Suite 400, Peachtree Corners, GA 30092
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $11.4M
- vs $10.3M prior year
Same owner · FDD Item 1, page 8
2 other brands on this site name Eagle Merchant Partners as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Navin Gurnaney
- Headquarters
- GA
- Founded
- 2016
- FDD year
- 2026
- States available
- 35
Can you afford it, and what does the money buy?
Entry cost runs 13% above the typical education franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| New Franchisee Training Fee | $750 | $750 | |
| Lease | $7K | $10K | |
| Utility Deposit | $250 | $500 | |
| Architect Fees | $2K | $5K | |
| Construction Costs | $50K | $90K | |
| Expenses for Initial Training | $2K | $2K | |
| Business Licenses and Permits | $250 | $1K | |
| Business Insurance | $1K | $3K | |
| Initial Inventory | $3K | $5K | |
| Computer Hardware & Software | $10K | $20K | |
| Furniture, Fixtures, and Equipment | $20K | $30K | |
| Signage | $6K | $12K | |
| Grand Opening Marketing Program | $8K | $10K | |
| Professional Fees | $500 | $3K | |
| Additional Funds (3 months) | $20K | $30K | |
| Total initial investment | $174K | $266K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $174K – $266K
- Middle of category vs category
- Liquid capital req'd
- $20K – $30K
- Middle of category vs category
- Franchise fee
- $35K – $45K
- Top 40% of category vs category
- Royalty
- 8.3%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.3% of net sales |
| Marketing / ad fund | 2.0% |
| Technology fee | $350 |
| Training fee | $750 |
| Transfer fee | $5K |
| Renewal fee | $4K |
| Inventory (initial) | $3K – $5K |
| Total fee load | 10.3% of rev |
What do units actually make?
Average unit sales run 42% below the education norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Code Ninjas until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$245K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Code Ninjas unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $237K
- Per unit, per year
- Median gross sales
- $217K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 230 outlets
- vs category median 16 · large
- Range (low → high)
- $43K→$731KCited, not corroborated — printed on page 56 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $122K→$383K
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $237K/year in gross sales. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 10.3% (near the Education median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -9.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education medians
How Code Ninjas Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 245
- Opened
- 14
- Last reporting year
- Closed
- 15
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.1%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +0.4%
- Net unit change over 3 years
- 3-yr CAGR
- -9.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 8
- Transferred
- 74
- Reacquired
- 2
- Franchisor bought back
- Signed, not yet open
- 29
- 0.12 per open outlet · Item 20 Table 5
- Projected new
- 22
- Franchisor's next-year forecast
- Transfer rate
- 7.3%
- Owners selling to other franchisees
- Continuity rate
- 94.1%
- Units that stayed open
- Termination rate
- 4.5%
- Franchisor-initiated terminations
- Ceased ops
- 0.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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.
Where the owners are · Item 20 owner list
269 current owners across 30 states.
- CA 57
- TE 30
- FL 26
- NE 24
- IL 13
- GE 11
- MI 11
- NO 11
- VI 11
- MA 10
- WA 9
- AR 8
- +18 more states
Counts only, from the list the franchisor prints in Item 20; 12 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 147
- Loan volume
- $30.3M
- Median loan
- $212K
- 50th percentile
- Charge-off rate
- 15.6%
- on 147 loans · 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)
- 84.4%
- 5-yr charge-off
- 9.6%
- Loans approved 2021+
- Active lenders
- 50
- Defaults
- 12
- Typical loan rate
- 7.5%
- avg rate to borrowers
- Franchised industry avg
- 14.3%
- brand above franchise avg ↑
- Jobs supported
- 1,323
- 4.7 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 85% went to startups / new businesses, 15% to established operators
Franchise vs independent — in computer training, franchised businesses charge off at 14.3% vs 24.0% for independents — franchising is associated with 40% lower SBA default risk in this category.
Vintage analysis
Code Ninjas charge-off rate by loan vintage
Top lenders financing Code Ninjas franchisees
Showing 3 of 50 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Code Ninjas from SBA 7(a) FOIA data.
- Principal loss rate
- 6.8%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.54%
- Avg chargeoff amount
- $159K
- Lender concentration
- 17.9%
- Job velocity
- 4.7 per $100K
- NAICS benchmark
- 14.6%
- NAICS 611420
- Jobs supported
- 1,323
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 24 | $4.2M | 10.0% |
| 2 | The Huntington National Bank | 15 | $2.6M | 0.0% |
| 3 | Wells Fargo Bank National Association | 6 | $1.1M | 0.0% |
| 4 | The Bancorp Bank National Association | 6 | $1.4M | 0.0% |
| 5 | Manufacturers and Traders Trust Company | 5 | $714K | 0.0% |
| 6 | Simmons Bank | 5 | $1.1M | 0.0% |
| 7 | First-Citizens Bank & Trust Company | 4 | $1.2M | 0.0% |
| 8 | JPMorgan Chase Bank, National Association | 4 | $856K | 0.0% |
| 9 | Midwest Regional Bank | 4 | $912K | 75.0% |
| 10 | Truist Bank | 4 | $690K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 17 | 6 | 50.0% |
| NJNew Jersey | 11 | 1 | 16.7% |
| CACalifornia | 9 | 0 | 0.0% |
| FLFlorida | 8 | 0 | 0.0% |
| GAGeorgia | 8 | 0 | 0.0% |
| PAPennsylvania | 8 | 1 | 33.3% |
| VAVirginia | 8 | 0 | 0.0% |
| MAMassachusetts | 6 | 1 | 16.7% |
| COColorado | 5 | 0 | 0.0% |
| NVNevada | 5 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Code Ninjas presents moderate-to-cautionary risk: flat unit growth, undisclosed profitability metrics, and heavy upfront investment relative to average unit volumes warrant deep due diligence before committing.
Litigation (Item 3)
No litigation information disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Forvis Mazars, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total Revenue for FY ended Dec 31, 2025 comprises Franchise revenue $1,018,444, Royalty revenue $6,964,412, Administrative revenue $1,349,424, and Other revenue $2,021,316. Approximately 90% of total revenue was derived from the Company's franchising operations.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 41 / 100 verdict
- 01MINORUnit count declining (-0.4% YoY) despite 245-unit system suggests market saturation or franchisee struggles
- 02MEDNet income not disclosed in FDD Item 19 prevents accurate ROI assessment and profitability verification
- 03MINORHigh initial investment ($174k-$266k) combined with modest average revenue ($237k) yields thin margins after 8.25% royalty
- 04MINORAverage revenue of $237k against $45k franchise fee means 5.3-year payback on franchise fee alone before operating costs
- 05MINOR10-year term is relatively long for children's educational/activity franchise with evolving market competition
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 7 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | GA |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 0 hrs
- Training location
- Remote self-paced (2 weeks) and in-person Atlanta, GA (1 week)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Code Ninjas Point of Sale (POS) system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Code Ninjas Point of Sale (POS) system
Item 20 · call current owners
Franchisee Contacts
281 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Code Ninjas franchise?
The total investment to open a Code Ninjas franchise ranges from $174K – $266K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Code Ninjas franchise owners earn?
According to Item 19 of the Code Ninjas FDD, the average gross sales per unit is $237K. The median is $217K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Code Ninjas?
Code Ninjas is franchised by Code Ninjas, LLC. Its parent company is Code Ninjas Holdings LLC. The ultimate parent named in the FDD is Eagle Merchant Partners. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Code Ninjas FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Code Ninjas FDD and qualifies whose outlets they describe.
What is Code Ninjas's franchise failure rate?
Based on SBA 7(a) loan data, Code Ninjas has a charge-off rate of 15.6% across 147 loans, meaning 15.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Code Ninjas franchise locations are there?
As of their most recent FDD filing, Code Ninjas has 245 total units in the United States, including 238 franchised units and 7 company-owned units. 14 new units were opened in the latest reporting year.
Is Code Ninjas a good franchise to buy?
FranchiseVerdict rates Code Ninjas as a C-grade franchise with a verdict score of 41 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.