STEM Builders Learning Center Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
STEM Builders Learning Center is a children's education franchise offering STEM enrichment, robotics, coding, and tutoring. Franchisees run the centers, managing instructors, curriculum, and enrollment.
FranchiseVerdict summary · 2026
A STEM Builders Learning Center franchise requires a total initial investment of $45K – $105K, including a $25K franchise fee and an ongoing 7.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $45K – $105K
- 9th pct Education
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 18th pct Education
- Units
- 4
- 18th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $45K – $105K including a $25K franchise fee, 7.0% ongoing royalty.
- RETURNSItem 19 states the franchisor makes no representations about franchisee future financial performance or the past financial performance of company-owned or franchised outlets; no financial performance data disclosed.
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- STEM Builders Learning Center, LLC
- Parent company
- STEM Builders, Inc.
- Predecessor
- STEM Builders, Inc.
- Prior franchisor entity
- CEO title
- Co-Founder, Chief Executive Officer and Chief Operating Officer
- Madhuri Chanda
- Incorporated in
- Minnesota
- HQ
- 15600 35th Ave N, Unit 201, Plymouth, MN 55447
- Auditor
- BAS Partners LLC
- Audited financials
- Franchisor revenue
- $37K
- vs $41K prior year
Overview
About
- CEO
- Madhuri Chanda
- Headquarters
- MN
- Founded
- 2018
- FDD year
- 2024
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 89% below the typical education franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $5K | $30K |
| Equipment, build-out, other | $15K | $50K |
| Total initial investment | $45K | $105K |
Source: STEM Builders Learning Center 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $45K – $105K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $30K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 7.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
STEM Builders Learning Center did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one STEM Builders Learning Center unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
114%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 19 states the franchisor makes no representations about franchisee future financial performance or the past financial performance of company-owned or franchised outlets; no financial performance data disclosed.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% — below the Education average of 10.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How STEM Builders Learning Center Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 33.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 1
- Franchisor bought back
No multi-year history disclosed and no opening/closing activity in the last reporting year.
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)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Small 3-unit all-franchised system with no litigation, bankruptcy, or going-concern and audited financials. Primary concern is a -25% net unit decline and no Item 19 disclosure.
Litigation (Item 3)
No litigation disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BAS Partners LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 43 / 100 verdict
- 01MEDNet unit decline -25%
- 02MINORNo Item 19 disclosure
- 03MINORSmall system (3 units)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Termination groundsℹ | 5 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Minnesota |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 21 hrs
- Training location
- Plymouth, Minnesota (webinar or headquarters) and at one or more operating STEM Builders Learning Center businesses
- Ongoing training
- Required
- Site selection
- franchisee
- POS system
- Calimatic
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Calimatic
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
STEM Builders Learning Center · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a STEM Builders Learning Center franchise?
The total investment to open a STEM Builders Learning Center franchise ranges from $45K – $105K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do STEM Builders Learning Center franchise owners earn?
STEM Builders Learning Center does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the STEM Builders Learning Center FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the STEM Builders Learning Center FDD and qualifies whose outlets they describe.
What is STEM Builders Learning Center's franchise failure rate?
SBA 7(a) loan charge-off data is not available for STEM Builders Learning Center (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 STEM Builders Learning Center franchise locations are there?
As of their most recent FDD filing, STEM Builders Learning Center has 4 total units in the United States, including 3 franchised units and 1 company-owned units.
Is STEM Builders Learning Center a good franchise to buy?
FranchiseVerdict rates STEM Builders Learning Center as a C-grade franchise with a verdict score of 43 out of 100 (higher is better), 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 STEM Builders Learning Center, you can request corrections or provide updated information.
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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.