STEM Builders Learning Center
Bottom line
- Total investment $45K – $105K including a $25K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
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 STEM Builders Learning Center unit return on the cash you put in?
Unlevered ROIC · per unit
114%
Above typical band (30–60%)
Overview
About
STEM Builders Learning Center operates an educational franchise offering science, technology, engineering, and math (STEM) instruction to youth through after-school programs, camps, and workshops. Franchisees manage physical learning centers, hire and train instructors, recruit students, and deliver hands-on STEM curriculum and robotics programming. Daily operations include customer acquisition, student enrollment management, instructor scheduling, curriculum delivery, and parent communication.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 4 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
4
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Critical lack of financial transparency combined with micro-scale franchise system and going concern status creates severe uncertainty around franchisee profitability and franchisor stability.
Score breakdown · what drove the 65 / 100 rating
- 01MEDNo Item 19 financial disclosure (avg revenue and net income not disclosed) — impossible to validate ROI on $45k-$104k investment
- 02MEDExtremely small unit base (only 5 locations) with no disclosed average unit volumes — high risk of system collapse or franchisor inability to support network
- 03HIGHGoing Concern status is False — suggests potential financial instability or operational challenges at franchisor level
- 04MINOR$500/month minimum royalty on 7% creates unprofitable math for low-revenue locations; unclear breakeven point
- 05MINOR5-year term is shorter than industry standard (10 years typical) — reduced security and higher renegotiation risk
- 06MINOR33.3% YoY growth on only 5 units (1.67 net new units) is mathematically insignificant — cannot extrapolate viability
- 07HIGHNo litigation disclosed but going concern status raises questions about franchisor financial health and dispute history
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
STEM Builders Learning Center · FDD (2024) PDF