iCodeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A iCode franchise requires a total initial investment of $79K – $427K, including a $35K franchise fee. Per the 2024 FDD, average unit revenue was $402K[2]. SBA 7(a) loans show a 6.1% charge-off rate across 33 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $79K – $427K
- 24th pct Education
- Avg gross sales
- $402K
- 20th pct Education
- Royalty
- N/A
- Units
- 46
- 47th pct Education
- SBA default
- 6.1%
- 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 system grew 52% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $79K – $427K including a $35K franchise fee.
- Average unit revenue of $402K/year (median $320K).
- Verdict F (Bottom Quintile) with a risk score of 85/100. 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, 2010–2024).
- 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
- iCode Franchise, Inc.
- Parent company
- iCode, LP
- Predecessor
- company
- Prior franchisor entity
- Incorporated in
- TX
- HQ
- 4577 Ohio Drive, Frisco, Texas 75035
- Auditor
- Alexander & Williams, LLC
- Audited financials
- Franchisor revenue
- $564K
- vs $613K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
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
iCode franchisees operate coding and STEM education centers serving K-12 students through two program models: School-based programs (in-school instruction) and Reach locations (standalone centers). Day-to-day operations include instructor hiring/training, curriculum delivery, student enrollment management, parent communications, and facility management.
- CEO
- Abid Abedi
- Headquarters
- TX
- Founded
- 2016
- FDD year
- 2024
- States available
- 18
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $5K | $45K |
| Equipment, build-out, other | $39K | $347K |
| Total initial investment | $79K | $427K |
Source: iCode 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$60K
15.0% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $79K – $427K
- Better than avg vs category
- Liquid capital req'd
- $5K – $45K
- Better than avg vs category
- Franchise fee
- $15K – $35K
- Better than avg vs category
- Royalty
- Greater of Minimum Royalty ($800/mo School, $250/mo Reach…
- 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 | $475 |
| Transfer fee | $20K |
| Renewal fee | $18K |
| Inventory (initial) | $16K – $20K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $402K
- Per unit, per year
- Median gross sales
- $320K
- Item 19 type
- gross_sales
- Sample size
- 33 units
- vs category median 14 · large
- Range (low → high)
- $217K→$928K
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
vs Education averages
How iCode Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 46
- Opened
- 15
- Last reporting year
- Closed
- 0
- Terminated
- 15
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- +51.7%
- Net unit change last year
- 3-yr CAGR
- +175.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 4
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- 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)
- 77.8%
- 5-yr charge-off
- 33.3%
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 2
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
3 case reference(s): 0 pending, 1 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Alexander & Williams, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 85 / 100 rating
- 01MINORNo average net income disclosure despite $401,554 average revenue—prevents ROI validation and suggests profitability concerns
- 02HIGH2022 litigation alleging deceptive trade practices and misrepresentation of construction costs indicates potential disclosure issues in FDD
- 03MEDHigh 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
- 04MEDStrong YoY growth (51.7%) is positive but unit base remains small (46 units)—limited scale and potential survival risk if growth stalls
- 05MINORDual 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Map |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
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 (2024) 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 $79K – $427K, 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 iCode franchise owners earn?
According to Item 19 of the iCode FDD, the average gross sales per unit is $402K. The median is $320K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 46 total units in the United States, including 16 franchised units and 2 company-owned units. 15 new units were opened in the latest reporting year.
Is iCode a good franchise to buy?
FranchiseVerdict rates iCode as a F-grade franchise with a risk score of 85 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.
For franchisors
Are you the franchisor?
If you represent iCode, you can request corrections or provide updated information.
Claim this brandOther Education franchises
Compare similar franchise opportunities in the Education category
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.