Tippi ToesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Tippi Toes franchise requires a total initial investment of $69K – $164K, including a $50K franchise fee. Per the 2026 FDD, average unit revenue was $269K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $69K – $164K
- 20th pct Education
- Avg gross sales
- $269K
- 11th pct Education
- Royalty
- N/A
- Units
- 88
- 56th pct Education
- SBA default
- 0.0%
- system-wide median varies by category
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
73% cash-on-cash return. Above the 20% threshold most investors target.
Bottom line
- Total investment $69K – $164K including a $50K franchise fee.
- Average unit revenue of $269K/year (median $219K), with an estimated 73% cash-on-cash return.
- Verdict A (Top Quintile) with a risk score of 43/100.
- System growing at 75.0% CAGR over 3 years with 88 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Tippi Toes, Inc.
- Parent company
- None
- Incorporated in
- OK
- HQ
- 3373 Eslin Court, Murfreesboro, Tennessee 37130
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $2.5M
- vs $2.4M prior year
Overview
About
Tippi Toes is a children's movement and dance instruction franchise. Franchisees operate studios offering classes in ballet, tap, jazz, and creative movement for toddlers and young children, generating revenue through tuition fees, recitals, and merchandise. Daily operations include teaching classes, managing student enrollments, scheduling instructors, and maintaining studio facilities.
- CEO
- Sarah Nuse
- Headquarters
- TN
- Founded
- 1999
- FDD year
- 2026
- States available
- 26
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $12K | $20K |
| Equipment, build-out, other | $7K | $95K |
| Total initial investment | $69K | $164K |
Source: Tippi Toes 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$43K
16.0% margin
Unlevered ROIC
33%
EBITDA / total invested capital
Payback
3.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $69K – $164K
- Better than avg vs category
- Liquid capital req'd
- $12K – $20K
- Better than avg vs category
- Franchise fee
- $50K – $130K
- Near category avg vs category
- Royalty
- greater of 7% of Gross Revenue or Minimum Royalty
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 1.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $419 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $269K
- Per unit, per year
- Median gross sales
- $219K
- Avg net income
- $85K
- Cash-on-cash
- 73.4%
- Based on Net Income / investment midpoint
- Item 19 type
- Actual
- Sample size
- 35 units
- vs category median 14 · large
- Range (low → high)
- $53K→$1.1M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Tippi Toes Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 88
- Opened
- 12
- Last reporting year
- Closed
- 4
- Turnover rate
- 4.5%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- +10.5%
- Net unit change last year
- 3-yr CAGR
- +75.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
- $215K
- Median loan
- $108K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Tippi Toes's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tippi Toes presents moderate-to-cautionary risk due to lack of financial disclosure transparency, undefined minimum royalty terms, and modest growth trajectory despite adequate profitability metrics.
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 43 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify avg revenue/net income claims
- 02MINORMinimum Royalty structure undefined — could create cash flow burden in slow months despite 7% rate
- 03MINORHigh franchise fee ($49,500) relative to startup costs creates break-even pressure before operations begin
- 04MEDModest unit growth (10.5% YoY) with only 88 units suggests niche market with limited expansion momentum
- 05MINORNet income ($68,882) leaves thin margin for error; represents only 25.6% of average revenue after all expenses
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Oklahoma |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 2 hrs
- POS system
- Studio Pro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Studio Pro
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tippi Toes · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Tippi Toes franchise?
The total investment to open a Tippi Toes franchise ranges from $69K – $164K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Tippi Toes franchise owners earn?
According to Item 19 of the Tippi Toes FDD, the average gross sales per unit is $269K. The median is $219K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Tippi Toes's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tippi Toes (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 Tippi Toes franchise locations are there?
As of their most recent FDD filing, Tippi Toes has 88 total units in the United States, including 48 franchised units and 4 company-owned units. 12 new units were opened in the latest reporting year.
Is Tippi Toes a good franchise to buy?
FranchiseVerdict rates Tippi Toes as a A-grade franchise with a risk score of 43 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.