iCode Franchise Cost, Revenue & Review 2026
- Investment
- $296K – $447K
- Disclosed sales
- $308K
- gross sales, not profit
- SBA charge-off
- Limited · 33 loans
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 and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $308K[2]. FranchiseVerdict grade: D (Below 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 scored5 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $296K – $447K
- 55th pct Education
- Avg gross sales
- $308K
- 11th pct Education
- Royalty
- 8.0%
- 44th pct Education
- Units
- 61
- 57th pct Education
- SBA charge-off
- N/A
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 $296K – $447K including a $40K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $308K/year.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- GROWTHPositive: net +14 franchised outlets in the latest year (19 opened, 5 closed) (Item 20).
- 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
- FDD Item 1, page 8 of the 2026 FDD
- 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 91% above 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
- 8.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| 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?
Average unit sales run 24% 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 iCode 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
$399K
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 iCode 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
- $308K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- quartile
- Sample size
- 37 outlets
- vs category median 16 · large
- Range (low → high)
- $65K→$1.1MCited, not corroborated — printed on page 49 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $144K→$566K
- 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
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $308K/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 10.0% (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 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 medians
How iCode 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
- 61
- Opened
- 19
- Last reporting year
- Closed
- 5
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.2%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 5
- Not renewed
- 0
- Transferred
- 4
- Reacquired
- 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).
Where the owners are · Item 20 owner list
54 current owners across 22 states.
- TX 17
- AZ 4
- MI 4
- WA 4
- NC 3
- CA 2
- FL 2
- NJ 2
- OK 2
- TN 2
- AR 1
- CO 1
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 33 loans
- Limited SBA coverage: 33 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 33 loans
- 5-yr charge-off
- Limited · 33 loans
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 2
- Typical loan rate
- 8.6%
- avg rate to borrowers
- Franchised industry avg
- 14.3%
- n=99 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for iCode from SBA 7(a) FOIA data.
- Principal loss rate
- 3.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 8.55%
- Avg chargeoff amount
- $138K
- Lender concentration
- 48.5%
- Job velocity
- 4.5 per $100K
- NAICS benchmark
- 14.6%
- NAICS 611420
- Jobs supported
- 418
Top SBA lendersTop lender holds 48% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 16 | $3.0M | 100.0% |
| 2 | Wells Fargo Bank National Association | 2 | $362K | 0.0% |
| 3 | IncredibleBank | 2 | $801K | N/A |
| 4 | The First National Bank of McGregor d/b/a TFNB Your Bank for | 2 | $288K | 0.0% |
| 5 | Cadence Bank | 2 | $815K | N/A |
| 6 | JPMorgan Chase Bank, National Association | 1 | $284K | 0.0% |
| 7 | Idaho Central CU | 1 | $269K | 0.0% |
| 8 | KeyBank National Association | 1 | $350K | 0.0% |
| 9 | Zions Bank, A Division of | 1 | $125K | N/A |
| 10 | CDC Small Business Finance Corp. | 1 | $310K | 100.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 9 | 0 | 0.0% |
| AZArizona | 3 | 1 | 100.0% |
| VAVirginia | 3 | 0 | -- |
| COColorado | 2 | 0 | -- |
| CTConnecticut | 2 | 0 | -- |
| FLFlorida | 2 | 0 | -- |
| MIMichigan | 2 | 0 | -- |
| NCNorth Carolina | 2 | 1 | 100.0% |
| WAWashington | 2 | 0 | -- |
| IDIdaho | 1 | 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?
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)
Subject: the franchisor is a named party (defendant).
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.
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 35 / 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 territory |
| 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
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?
According to Item 19 of the iCode FDD, the average gross sales per unit is $308K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns iCode?
iCode is franchised by iCode Franchise, Inc.. Its parent company is iCode, LP. Source: FDD Item 1, 2026 filing.
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?
SBA 7(a) loan charge-off data is not available for iCode (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 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. 19 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 35 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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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.