FranchiseVerdict
Imagine Arts Academy logo
FV-01283·MODERATEExcellent81

Imagine Arts Academy

Education - Children's ProgramsFranchising since 2018Website
Investment
$128K – $168K
41st pct Children's Pr…
Avg revenue
69th pct Children's Pr…
Royalty
8.0%
56th pct Children's Pr…
Units
27
62nd pct Children's Pr…
SBA default

Bottom line

  • Total investment $128K – $168K including a $49K franchise fee, 8.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 59/100.
  • System growing at 35.0% CAGR over 3 years with 27 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
IMAGINE ARTS ACADEMY INC.
Parent company
2Inspire, Inc.
Incorporated in
Canada
HQ
8360 Bougainville Street, Suite 201, Montreal, Quebec, Canada, H4P 2G1
Auditor
Raymond Chabot Grant Thornton
Audited financials
Franchisor revenue
$362K
vs $415K 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 Imagine Arts Academy unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $128K–$168K
Working capital
$
FDD reports $14K–$21K

Unlevered ROIC · per unit

54%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$165K
Payback
22 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.

Overview

About

Imagine Arts Academy franchisees operate youth arts education centers offering classes in visual arts, music, drama, and creative disciplines to children and teens. Day-to-day operations include teaching or managing instructors, handling student enrollment and scheduling, marketing to local families, managing facilities and materials, and retaining students through seasonal programming.

CEO
Marco Holstvoogd
Founded
2018
FDD year
2025
States available
15

Item 7 · what it costs

The Vitals

Total investment
$128K – $168K
All-in to open one unit
Liquid capital
$14K – $21K
Cash you must have on hand
Franchise fee
$49K
Royalty
8.0%
Percentage of Gross Revenues · typical 6–8%
Ad fund
The greater of $2,000 per year or 2% of Gross Revenues
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
27
Opened
9
Last reporting year
Closed
3
Turnover rate
11.1%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+28.6%
Net unit change last year
3-yr CAGR
+35.0%
Compounded over last 3 years
2023
27+6
Franchised units
2024
21
Franchised units
2025
20
Franchised units

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

Item 20 · 13 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

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

59
Risk · 0-100
MODERATE59 / 100

Moderate-to-high risk: regulatory baggage of parent company, missing financial disclosures, rapid growth without profitability transparency, and unclear franchisor financial health warrant thorough validation.

Score breakdown · what drove the 59 / 100 rating

  1. 01MINORParent company (Mad Science Group) has regulatory history: 2013 Maryland consent order for unregistered franchise offers and disclosure failures
  2. 02MINORNo Item 19 financial performance disclosure — cannot verify average unit economics or profitability claims
  3. 03MINORRapid unit growth (28.6% YoY) with only 27 units is concerning for quality control and suggests possible aggressive recruiting over franchisee support
  4. 04MEDHigh initial investment ($128K–$168K) combined with 8% royalty and no disclosed average revenue creates uncertainty on ROI timeline
  5. 05HIGHGoing Concern status is 'False' — requires clarification on franchisor's financial stability and parent company relationship

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Geographic area
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
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
Required
Governing law
Quebec

Item 11

Training & Operations

Classroom training
0 hrs
On-the-job training
80 hrs
POS system
QuickBooks
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

17 numbers

Locked
(832) 303-••••
TX
(303) 403-••••
CO
(330) 498-••••
OH

One-time purchase · CSV download · Validation questions included

FDD download

Imagine Arts Academy · FDD (2025) PDF

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