Code NinjasFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Code Ninjas franchise requires a total initial investment of $174K – $266K, including a $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]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $174K – $266K
- 40th pct Education
- Avg gross sales
- $237K
- 7th pct Education
- Royalty
- 8.3%
- 42nd pct Education
- Units
- 245
- 65th pct Education
- SBA default
- 15.6%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education 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 franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $174K – $266K including a $45K franchise fee, 8.3% ongoing royalty.
- Average unit revenue of $237K/year (median $217K).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 15.6% across 147 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Code Ninjas, LLC
- Parent company
- Code Ninjas Holdings LLC
- Ultimate parent
- Eagle Merchant Partners
- Incorporated in
- TX
- HQ
- 3500 Parkway Lane, Suite 400, Peachtree Corners, GA 30092
- Auditor
- Forvis Mazars, LLP
- Audited financials
- Franchisor revenue
- $10.3M
- vs $11.4M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Code Ninjas franchisees operate brick-and-mortar coding/technology education centers serving children ages 7-14. Day-to-day operations include teaching programming courses, managing small class cohorts, handling student enrollment/billing, maintaining facilities, and executing local marketing. Revenue streams typically include class tuition, camps, birthday parties, and summer programs.
- CEO
- Navin Gurnaney
- Headquarters
- GA
- Founded
- 2016
- FDD year
- 2026
- States available
- 35
FDD Item 7 · 2026 filing · 32 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| New Franchisee Training Feenot refundable | $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 | |
| Initial Franchise Fee (Studio Center)not refundable | $35K | $35K | |
| New Franchisee Training Fee (Studio Center)not refundable | $750 | $750 | |
| Lease (Studio Center) | $0 | $3K | |
| Construction Costs (Studio Center) | $0 | $5K | |
| Total initial investment | $472K | $691K |
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.
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
$30K
12.8% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $174K – $266K
- Better than avg vs category
- Liquid capital req'd
- $20K – $30K
- Better than avg vs category
- Franchise fee
- $35K – $45K
- Better than avg vs category
- Royalty
- 8.3%
- Net Sales · 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 gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $350 |
| Training fee | $750 |
| Transfer fee | $5K |
| Renewal fee | $4K |
| Inventory (initial) | $3K – $5K |
| Total fee load | 10.3% of rev |
Financial Performance
- Avg gross sales
- $237K
- Per unit, per year
- Median gross sales
- $217K
- Item 19 type
- gross_sales
- Sample size
- 230 units
- vs category median 14 · large
- Range (low → high)
- $43K→$731K
- Cohort dispersion (min → max)
- Quartile band
- $122K→$383K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
vs Education averages
How Code Ninjas Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 245
- Opened
- 14
- Last reporting year
- Closed
- 13
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- -0.4%
- Net unit change last year
- 3-yr CAGR
- -9.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 18
- 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 · 11 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.
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%
- 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
Vintage analysis
Code Ninjas charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Code Ninjas's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1.5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| 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
- On-site and classroom
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- 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
92 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Code Ninjas · FDD (2026) PDF
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 $45K. 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.
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 B-grade franchise with a risk score of 55 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.