FranchiseVerdict
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FV-01539·MODERATEExcellent91

Mad Science

Education - Children's ProgramsFranchising since 1995Website
Investment
$132K – $192K
44th pct Children's Pr…
Avg revenue
$388K
30th pct Children's Pr…
Royalty
8.0%
56th pct Children's Pr…
Units
70
82nd pct Children's Pr…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $132K – $192K including a $49K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $388K/year (median $323K).
  • Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 41 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Mad Science Group Inc.
Parent company
3908160 Canada Inc.
Incorporated in
Canada
HQ
8360 Bougainville Street, Suite 201, Montreal, Quebec, Canada, H4P 2G1
Auditor
Raymond Chabot Grant Thornton
Audited financials
Franchisor revenue
$4.4M
vs $4.6M 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 Mad Science unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $388,000
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: $132K–$192K
Working capital
$
FDD reports $14K–$21K

Unlevered ROIC · per unit

28%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$50K
EBITDA margin
13.0%
Total invested
$179K
Payback
43 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.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Mad Science units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$466K

on $2.3M purchase

Total debt

$1.9M

SBA $1.2M + senior + seller note

Overview

About

Mad Science franchisees deliver hands-on STEM education programs (chemistry, physics, engineering experiments) to children through school partnerships, birthday parties, summer camps, and corporate events. Day-to-day operations involve scheduling mobile lab visits, managing equipment inventory, recruiting/training instructors, and marketing programs to schools and parents.

CEO
Ariel Shlien
Founded
1993
FDD year
2025
States available
21

Item 7 · what it costs

The Vitals

Total investment
$132K – $192K
All-in to open one unit
Liquid capital
$14K – $21K
Cash you must have on hand
Franchise fee
$49K
Royalty
8.0%
Gross Revenues · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$388K
Per unit, per year
Median gross sales
$323K
Item 19 type
Gross Revenues
Sample size
57 units
vs category median 16 · large
Range (low → high)
$85K$1.3M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank30th
vs Education - Children's Programs peers
Investment cost rank44th
Lower investment ranks lower (better)
Royalty rate rank56th
Lower royalty = lower percentile (better)
Unit count rank82th
vs Education - Children's Programs peers
Risk score rank32th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
70
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
12
Corporate units in the system
% franchised
83%
vs corporate-owned
Net growth (yr3)
+1.8%
Net unit change last year
3-yr CAGR
-1.7%
Compounded over last 3 years
2023
58+4
Franchised units
2024
57
Franchised units
2025
59
Franchised units

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

Item 20 · 18 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 · 18 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.

Total loans
41
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

55
Risk · 0-100
MODERATE55 / 100

Mad Science presents elevated risk due to non-disclosed profitability, stagnant unit growth, going concern status, active litigation, and regulatory history that collectively suggest a struggling franchise system with unclear franchisee economics.

Score breakdown · what drove the 55 / 100 rating

  1. 01HIGHGoing Concern status is FALSE — franchisor may have solvency or operational viability issues
  2. 02MEDNet income not disclosed in Item 19 — unable to verify profitability claims; only $388k average revenue provided
  3. 03MINORMinimal unit growth (1.8% YoY) — system is essentially stagnant with only ~70 locations
  4. 04HIGHOngoing Paris litigation (2020) with competitor alleging reputation damage and network disruption — material reputational risk
  5. 05MINORFDD registration violation in Maryland (2012) with consent order — compliance/governance red flag
  6. 06MEDHigh franchise fee ($49k) relative to slow growth and undisclosed margins — ROI unclear
  7. 07MINOR8% royalty on $388k avg revenue = ~$31k annual fee — materially impacts unit economics with unknown net profitability

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
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
2
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

27 numbers

Locked
(414) 858-••••
WI
(303) 403-••••
CO
(412) 359-••••
PA

One-time purchase · CSV download · Validation questions included

FDD download

Mad Science · FDD (2025) PDF

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