FranchiseVerdict
Story Time Chess logo
FV-02461·MODERATEExcellent86

Story Time Chess

Education - Children's ProgramsFranchising since 2025Website
Investment
$56K – $76K
23rd pct Children's Pr…
Avg revenue
$581K
40th pct Children's Pr…
Royalty
Units
5
28th pct Children's Pr…
SBA default

Bottom line

  • Total investment $56K – $76K including a $45K franchise fee.
  • Average unit revenue of $581K/year (median $644K).
  • Rated MODERATE with a risk score of 60/100.
  • No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Story Time Chess Franchising LLC
Parent company
Thinking Cup, Inc.
Incorporated in
Tennessee
HQ
116 Agnes Rd, Suite 200, Knoxville, Tennessee 37919
Auditor
Metwally CPA PLLC
Audited financials
Franchisor revenue
$80K
Most recent fiscal 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 Story Time Chess unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $580,800
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: $56K–$76K
Working capital
$
FDD reports $4K–$11K

Unlevered ROIC · per unit

126%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$93K
EBITDA margin
16.0%
Total invested
$73K
Payback
9 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 Story Time Chess 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

$1.0M

on $5.2M purchase

Total debt

$4.2M

SBA $2.6M + senior + seller note

Overview

About

Story Time Chess franchisees operate chess education programs, likely delivering instruction to children through storytelling-based learning methods. Daily operations typically include scheduling classes, managing student enrollment, delivering in-person or virtual instruction, handling parent communications, and managing local marketing to build client base.

CEO
Paul Levy
Founded
2025
FDD year
2026
States available
2

Item 7 · what it costs

The Vitals

Total investment
$56K – $76K
All-in to open one unit
Liquid capital
$4K – $11K
Cash you must have on hand
Franchise fee
$45K
Royalty
Greater of $200 per week or 7% of Gross Revenues
Ad fund
1.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$581K
Per unit, per year
Median gross sales
$644K
Item 19 type
Gross Sales
Sample size
5 units
vs category median 16 · small
Range (low → high)
$325K$814K
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank40th
vs Education - Children's Programs peers
Investment cost rank23th
Lower investment ranks lower (better)
Royalty rate rank79th
Lower royalty = lower percentile (better)
Unit count rank28th
vs Education - Children's Programs peers
Risk score rank46th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
5
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
5
Corporate units in the system
% franchised
0%
vs corporate-owned
2024
0±0
Franchised units
2025
0
Franchised units
2026
0
Franchised units

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

Item 20 · 16 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 · 16 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.

No SBA loan data available for this brand.

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

Risk & Legal

60
Risk · 0-100
MODERATE60 / 100

Severely underdeveloped franchise system (5 units) with revenue and profitability opacity, no territorial protection, and aggressive royalty burden for unproven concept.

Score breakdown · what drove the 60 / 100 rating

  1. 01MINOROnly 5 units system-wide with unknown/stagnant growth trajectory indicates minimal scale and market validation
  2. 02MINORNo Item 19 (Average Net Income) disclosure prevents ROI assessment; $55.6K-$76K investment lacks profitability transparency
  3. 03MINORUnprotected territory creates direct competition risk—multiple franchisees could operate in same market, cannibalizing $580.8K average revenue
  4. 04MINOR7% royalty on declining revenue base plus $200/week minimum ($10.4K annually) creates significant fixed cost burden with thin margins
  5. 05MINOR5-year term is short; franchisor reinvestment commitment and long-term viability unclear with such a micro-system
  6. 06HIGHNo disclosed litigation history in such small system may indicate lack of transparency rather than absence of disputes

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population-based
Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
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
Tennessee

Item 11

Training & Operations

Classroom training
15 hrs
On-the-job training
25 hrs
POS system
Tutor Cruncher (transitioning to proprietary POS System)
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

18 numbers

Locked
(808) 586-••••
HI
(651) 539-••••
MN
(503) 378-••••
OR

One-time purchase · CSV download · Validation questions included

FDD download

Story Time Chess · FDD (2026) PDF

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