iCode Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
iCode is a K-12 STEM education franchise offering coding, robotics, and technology classes and camps. Franchisees run learning centers or mobile programs, managing instructors, curriculum, and enrollment.
FranchiseVerdict summary · 2026
A iCode franchise requires a total initial investment of $296K – $447K, including a $20K – $40K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.1% charge-off rate across 33 loans[1]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $296K – $447K
- 55th pct Education
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 61
- 57th pct Education
- SBA charge-off
- 6.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · 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 $296K – $447K including a $40K franchise fee.
- RETURNSItem 19 discloses average/median/low/high Gross Sales for 37 franchised iCode Schools operating the full 2025 reporting period, segmented into 4 quartiles (no single system-wide average is stated). Figures reflect revenue only, not net income; royalty, advertising, and operating expenses are excluded.
- RISKVerdict D (Below average), verdict score 36/100 (higher is better). SBA loan charge-off rate of 6.1% across 33 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGAuditor 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
Corporate structure & franchisor financials
- Legal entity
- iCode Franchise, Inc.
- Parent company
- iCode, LP
- Predecessor
- company
- Prior franchisor entity
- CEO title
- Founder/Chairman/CEO
- Abid Abedi
- Incorporated in
- Texas
- HQ
- 3201 Dallas Parkway, Suite 810, Frisco, Texas 75034
- Auditor
- Alexander & Williams, PLLC
- Audited financials
- Franchisor revenue
- $2.9M
- vs $1.6M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- but franchisees are not required to purchase this product
- iCode Technologies
- Indigo Street
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Abid Abedi
- Headquarters
- Texas
- Founded
- 2016
- FDD year
- 2026
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 44% below the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $40K |
| Equipment, build-out, other | $241K | $367K |
| Total initial investment | $296K | $447K |
Source: iCode 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $296K – $447K
- Middle of category vs category
- Liquid capital req'd
- $15K – $40K
- Top 40% of category vs category
- Franchise fee
- $20K – $40K
- Top 40% of category vs category
- Royalty
- Greater of Minimum Royalty or 8% of Gross Sales (iCode Sc…
- 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 | $2K |
| Transfer fee | $20K |
| Renewal fee | $18K |
| Inventory (initial) | $13K – $15K |
| Total fee load | 10.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
iCode did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one iCode unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
28%
Below the 30–60% attractive-franchise band
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
Item 19 discloses average/median/low/high Gross Sales for 37 franchised iCode Schools operating the full 2025 reporting period, segmented into 4 quartiles (no single system-wide average is stated). Figures reflect revenue only, not net income; royalty, advertising, and operating expenses are excluded.
- Item 19 type
- quartile
- Sample size
- 37
- vs category median 17 · large
- Range (low → high)
- $65K→$1.1M
- Cohort dispersion (min → max)
- Quartile band
- $144K→$566K
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- 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.
Fee burden
Total ongoing fee load of 10.0% (near the Education average).
Disclosure
Item 19 reports quartile rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 96.8% CAGR over 3 years across 61 units — operators are staying and new ones are joining.
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 averages
How iCode Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 61
- Opened
- 14
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +96.8%
- Net unit change over 3 years
- 3-yr CAGR
- +96.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 14
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 4.5%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
- Termination rate
- 34.1%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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.
Available to sell in · Item 12
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 33
- Loan volume
- $9.3M
- Median loan
- $284K
- 50th percentile
- Charge-off rate
- 6.1%
- 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)
- 93.9%
- 5-yr charge-off
- 33.3%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 2
- Typical loan rate
- 8.6%
- avg rate to borrowers
- Franchised industry avg
- 14.3%
- brand beats franchise avg ↓
- Jobs supported
- 418
- 4.5 per loan
- Lender concentration
- 48%
- top lender's share
Borrower mix: 97% went to startups / new businesses, 3% 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.
Top lenders financing iCode franchisees
Showing 3 of 14 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.
Premium insight
SBA Lending Report
Deep-dive into iCode'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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
iCode presents moderate-to-cautionary risk due to undisclosed profitability metrics, prior litigation over misrepresentation, high royalty rates, and a still-small franchise system with rapid but unproven growth trajectory.
Litigation (Item 3)
Code Utah, LLC (franchisee) sued iCode Franchise, Inc. in 2022 alleging Texas Deceptive Trade Practices Act violations, unfair competition, fraudulent inducement, unjust enrichment, mutual mistake, and negligent misrepresentation over leasehold improvement cost overruns versus Item 7 estimates; settled Jan 2024 without admission of wrongdoing, franchise agreement terminated, franchisor paid $14,000 and its insurer paid $85,000 to plaintiff.
Largest disclosed settlement: $99,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Alexander & Williams, PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
Score breakdown · what drove the 36 / 100 verdict
- 01HIGH2022 litigation alleging deceptive trade practices and misrepresentation of construction costs indicates potential disclosure issues in FDD
- 02MEDHigh royalty burden (8-12% of gross sales plus $250-$800 monthly minimums) creates thin margin vulnerability, especially if net income is undisclosed for a reason
- 03MEDStrong YoY growth (51.7%) is positive but unit base remains small (46 units)—limited scale and potential survival risk if growth stalls
- 04MINORDual program structure (School vs. Reach) with different royalty rates suggests complexity that may not be clearly explained to new franchisees
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% 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 | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 250,000 |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | AAA offices in the city of franchisor's principal business office (Frisco/Dallas, Texas area) at time of arbitration |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
Code Utah, LLC (franchisee) sued iCode Franchise, Inc. in 2022 alleging Texas Deceptive Trade Practices Act violations, unfair competition, fraudulent inducement, unjust enrichment, mutual mistake, and negligent misrepresentation over leasehold improvement cost overruns versus Item 7 estimates; settled Jan 2024 without admission of wrongdoing, franchise agreement terminated, franchisor paid $14,000 and its insurer paid $85,000 to plaintiff.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 29 hrs
- Training location
- iCode Corporate Office, Frisco, Texas (or other designated physical/virtual location)
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- Franchisor-approved real estate service (demographic profiling, market search, site selection, lease negotiation)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
54 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
iCode · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a iCode franchise?
The total investment to open a iCode franchise ranges from $296K – $447K, 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 iCode franchise owners earn?
iCode does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the iCode 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 iCode FDD and qualifies whose outlets they describe.
What is iCode's franchise failure rate?
Based on SBA 7(a) loan data, iCode has a charge-off rate of 6.1% across 33 loans, meaning 6.1% 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 iCode franchise locations are there?
As of their most recent FDD filing, iCode has 61 total units in the United States, including 61 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is iCode a good franchise to buy?
FranchiseVerdict rates iCode as a D-grade franchise with a verdict score of 36 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent iCode, you can request corrections or provide updated information.
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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.