FranchiseVerdict
Freckled Frog Dance Studio logo
FV-00989·MODERATEExcellent86

Freckled Frog Dance Studio

Formerly known as The Freckled Frog

Health & FitnessFranchising since 2024Website
Investment
$50K – $115K
7th pct Health & Fitn…
Avg revenue
$332K
13th pct Health & Fitn…
Royalty
5.0%
1st pct Health & Fitn…
Units
3
16th pct Health & Fitn…
SBA default

Bottom line

  • Total investment $50K – $115K including a $36K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $332K/year.
  • Rated MODERATE with a risk score of 60/100.
  • Emerging franchise — only 2 years of franchising with 3 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Freckled Frog Franchise Group, LLC
Incorporated in
California
HQ
1931 N Tustin Ave. Santa Ana, CA 92705
Auditor
Velez & Hardy CPAs and Advisors
Audited financials
Franchisor revenue
$0
vs $0 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 Freckled Frog Dance Studio unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $331,624
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: fitness
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $50K–$115K
Working capital
$
FDD reports $4K–$7K

Unlevered ROIC · per unit

121%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$106K
EBITDA margin
32.0%
Total invested
$88K
Payback
10 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 Freckled Frog Dance Studio 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

$1.7M

on $8.3M purchase

Total debt

$6.6M

SBA $4.1M + senior + seller note

Overview

About

Freckled Frog Dance Studio franchisees operate children's dance instruction facilities, managing class schedules across multiple age groups and skill levels, handling student enrollment and retention, coordinating recitals/performances, and managing studio staff and operations in protected territories.

CEO
Stacy Reese
Founded
2023
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$50K – $115K
All-in to open one unit
Liquid capital
$4K – $7K
Cash you must have on hand
Franchise fee
$36K
Royalty
5.0%
Percentage of Gross Revenues · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$332K
Per unit, per year
Median gross sales
Item 19 type
Company Owned
Sample size
3 units
vs category median 12 · small
Range (low → high)
$193K$416K
Cohort dispersion
Transparency
3 / 5
vs category median 4 / 5 · below
Revenue rank13th
vs Health & Fitness peers
Investment cost rank7th
Lower investment ranks lower (better)
Royalty rate rank1th
Lower royalty = lower percentile (better)
Unit count rank16th
vs Health & Fitness peers
Risk score rank45th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
3
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
3
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

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

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

Government records

SBA Loan Data

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

No SBA loan data available for this brand.

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

Risk & Legal

60
Risk · 0-100
MODERATE60 / 100

Extreme caution warranted: micro-scale franchise (3 units) with undisclosed profitability, corporate going concern issues, and unclear growth prospects despite moderate investment requirements.

Score breakdown · what drove the 60 / 100 rating

  1. 01MINOROnly 3 units in system with unknown growth trajectory suggests stagnant or declining franchise
  2. 02MEDNo average net income disclosed despite $331K average revenue — opacity on actual profitability
  3. 03HIGHGoing Concern status is FALSE, indicating potential financial instability at corporate level
  4. 04MINORHigh initial investment ($49.5K-$115.4K) relative to tiny unit count raises sustainability questions
  5. 05MINOR$36K franchise fee on 3-unit system may indicate struggling franchisor dependent on franchise sales revenue
  6. 06HIGHNo litigation disclosed but small unit count makes this less meaningful; limited sample size for dispute history

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Radius / Population
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
California

Item 11

Training & Operations

Classroom training
24 hrs
On-the-job training
16 hrs
POS system
Jackrabbit Class software virtual POS
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

1 numbers

Locked
(714) 356-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Freckled Frog Dance Studio · FDD (2025) PDF

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