Little Art HouseFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Little Art House franchise requires a total initial investment of $106K – $192K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $146K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $106K – $192K
- 31st pct Education
- Avg gross sales
- $146K
- 3rd pct Education
- Royalty
- 6.0%
- 6th pct Education
- Units
- 3
- 11th pct Education
- SBA default
- N/A
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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
18% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $106K – $192K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $146K/year, with an estimated 18% cash-on-cash return (based on P&L Bottom Line).
- Verdict B (Above Average) with a risk score of 62/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LITTLE ART HOUSE FRANCHISES LLC
- Incorporated in
- TN
- HQ
- 2106B Acklen Avenue, Nashville, Tennessee 37212
- Auditor
- Kezas & Dunlavy
- Audited financials
Overview
About
Little Art House franchisees operate art education and creative studio spaces serving children and adults. Day-to-day activities include teaching art classes, managing student enrollment, scheduling instructors, maintaining studio facilities, and handling retail sales of art supplies. Franchisees manage both direct instruction and administrative responsibilities to grow their local student base.
- CEO
- Emma Lancaster Bradford
- Headquarters
- TN
- Founded
- 2023
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Rent and Security Deposit - Pre-Opening and First 3 Months | $10K | $20K | |
| Leasehold Improvements | $15K | $45K | |
| Equipment, Furniture, Fixtures, Decor, and Office Supplies | $8K | $16K | |
| Computer Hardware and Software (Including Point of Sale System) | $500 | $2K | |
| Initial Stock of Studio Supplies | $6K | $8K | |
| Interior and Exterior Signs | $1K | $5K | |
| Out-of-Pocket Expenses During Training | $1K | $3K | |
| Initial Advertising | $2K | $3K | |
| Business Licenses and Permits | $800 | $2K | |
| Professional Fees | $750 | $5K | |
| Insurance (Annual Estimate) | $2K | $3K | |
| Additional Funds - 3 Months | $20K | $40K | |
| Third-Party Location Addendum Feenot refundable | $8K | $8K | |
| Pre-Opening Rent (Third-Party Location) | $500 | $1K | |
| Initial Stock of Supplies (Third-Party Location) | $250 | $500 | |
| Initial Advertising (Third-Party Location) | $250 | $500 | |
| Professional Fees (Third-Party Location) | $0 | $500 | |
| Insurance Annual Estimate (Third-Party Location) | — | — | |
| Additional Funds - 3 Months (Third-Party Location) | $500 | $2K | |
| Total initial investment | $121K | $212K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$22K
15.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $106K – $192K
- Better than avg vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $30K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 5.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $12K |
| Renewal fee | $6K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $146K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $27K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 18.1%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Affiliate Outlets
- Sample size
- 2 units
- vs category median 14 · small
- Range (low → high)
- $108K→$184K
- Cohort dispersion (min → max)
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Education averages
How Little Art House Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- Last reporting year
- Closed
- 1
- Turnover rate
- 33.3%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Little Art House presents caution-level risk due to corporate going concern issues, minimal franchisee base, unverified financial claims, and heavy fee structure relative to profitability.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezas & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 62 / 100 rating
- 01HIGHGoing Concern status indicates financial instability or viability questions at corporate level
- 02MINOROnly 3 units with unknown growth trajectory suggests stalled or declining system expansion
- 03MINORNo Item 19 financial performance representation limits ability to validate the $26,902 average net income claim
- 04MINORHigh initial investment ($106,050–$191,500) relative to reported net income creates 4–7 year payback period
- 05MINOR6% royalty on gross revenue (not net) compounds financial pressure during low-margin months
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 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 48 hrs
- On-the-job training
- 23 hrs
- Training location
- Nashville, Tennessee headquarters, virtual, and on-site at franchise premises
- Field support
- 25 hrs/yr
- On-site visits per year
- POS system
- Sawyer
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Sawyer
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Little Art House · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Little Art House franchise?
The total investment to open a Little Art House franchise ranges from $106K – $192K, 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 Little Art House franchise owners earn?
According to Item 19 of the Little Art House FDD, the average gross sales per unit is $146K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Little Art House's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Little Art House (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 Little Art House franchise locations are there?
As of their most recent FDD filing, Little Art House has 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is Little Art House a good franchise to buy?
FranchiseVerdict rates Little Art House as a B-grade franchise with a risk score of 62 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 Little Art House, 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.