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FranchiseVerdict

How Much Does a Prepaze Academy Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$154K – $309K

Franchise Fee

$39K

Royalty

The greater of 12% of gross sales or $750 per month

Ad Fund

2.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Prepaze Academy is $39K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Prepaze Academy franchise requires a total investment of $154K – $309K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $36K to $42K.

Ongoing Costs

Beyond the initial investment, Prepaze Academy franchisees pay ongoing fees. The royalty structure is: The greater of 12% of gross sales or $750 per month. The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $250.

Net Worth & Liquid Capital Requirements

Prepaze Academy requires working capital of $36K – $42K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Prepaze Academy does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Prepaze Academy?

SBA Loans Issued

11

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Prepaze Academy has 11 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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