STEM Builders Learning CenterFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $45K – $105K
- 8th pct Education
- Avg gross sales
- N/A
- 47th pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 5
- 16th 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
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.
- Verdict C (Average) with a risk score of 65/100.
- 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
- Legal entity
- STEM Builders Learning Center, LLC
- Incorporated in
- MN
- 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
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.
- CEO
- Madhuri Chanda
- Headquarters
- MN
- Founded
- 2018
- FDD year
- 2024
- States available
- 4
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
- Better than avg vs category
- Liquid capital req'd
- $5K – $30K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenues · 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Education averages
How STEM Builders Learning Center Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Net growth (yr3)
- +33.3%
- Net unit change last year
- 3-yr CAGR
- +33.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Audited financials (Item 21)
Yes · BAS Partners LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip codes |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 21 hrs
- POS system
- Calimatic
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Calimatic
Item 20 · call current owners
Franchisee Contacts
18 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 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 5 total units in the United States, including 3 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is STEM Builders Learning Center a good franchise to buy?
FranchiseVerdict rates STEM Builders Learning Center as a C-grade franchise with a risk score of 65 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.
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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.