Risk Score
Pending analysis
Investment Range
$38,714 - $82,564
Franchise Fee
$22,860
Total US Locations
37
Business Summary
ABRAKADOODLE operates a business that offers arts education programs for children aged 20 months to 12 years, provides curriculum materials for art teachers, and hosts art classes and special events for adults. ABRAKADOODLE programs are typically presented at host sites like public and private schools, community centers, and other facilities operated by others. Franchisees are not required to operate their own dedicated educational facility, although they may choose to do so.
Corporate History
ABRAKADOODLE was established as a Virginia corporation on October 17, 2003, and began offering franchises in February 2004. Since January 25, 2016, Mega Education, Inc., a Samoan corporation, has been the majority owner, making it ABRAKADOODLE's parent company. ABRAKADOODLE's President operated a similar arts education business from August 2002, prior to the company's franchising efforts. ABRAKADOODLE currently operates two corporate-owned franchise model locations in Virginia.
Financial Overview
Investment Range
$38,714 - $82,564
Franchise Fee (Low)
$22,860
Franchise Fee (High)
$56,900
Royalty %
8%
Marketing %
1%
Equipment Costs (High)
$2,500
Working Capital
$2,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
ABRAKADOODLE's financial statements show positive cash flow from its operating activities, and its independent auditors issued an unqualified opinion, indicating the financial statements are presented fairly in all material respects. However, the auditors included an "Emphasis of Matter" note to highlight that ABRAKADOODLE has a significant related-party loan payable to its parent company, Mega Education, Inc., amounting to $800,000 as of December 31, 2023. No interest was accrued for this loan in 2023.
Financing Details
ABRAKADOODLE does not offer any direct or indirect financing to its franchisees. It also does not guarantee any loans, leases, or other financial obligations for franchisees. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
37
Franchised Units
35
Corporate Units
2
Franchising Since
2004
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
ABRAKADOODLE has no litigation history to report. Item 3 of the Franchise Disclosure Document states that no litigation is required to be disclosed.
Bankruptcy History
ABRAKADOODLE has no bankruptcy history to report. Item 4 of the Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, ABRAKADOODLE franchisees must provide written notice between 180 days and one year before the current term expires. They must be financially solvent, not have stopped operating the business, and not operate in a manner that endangers public health or safety. Franchisees must not have repeatedly defaulted on the agreement, submitted inaccurate reports, or been involved in felonies or illegal conduct. They also need to sign the franchisor's then-current standard franchise agreement and pay any renewal and broker fees. The new agreement may include significantly different terms, including various fees and territorial rights.
Training & Support Program
Franchisor Assistance
ABRAKADOODLE provides extensive support before and during a franchisee's operations. Before opening, franchisees receive current curriculum materials, self-directed Quick Start Training online or at home, and a 5-day Business Development Training session in the Washington D.C. area or via online virtual sessions. They also get an Operations Manual, specifications for equipment and supplies, samples of marketing materials, and guidance for setting up a commercial office or art studio if they choose to have one. Ongoing support includes annual regional, national, or international conferences, updates on system improvements, and periodic telephone, electronic mail, or other assistance for daily operations, marketing, advertising, fiscal management, and personnel. ABRAKADOODLE also provides Business Development Training for replacement managers, negotiates volume purchasing discounts, reviews equipment and material contracts, and administers a system-wide advertising and promotional fund. Franchisees may also choose to participate in additional programs.
Initial Training Hours
100
Training Location
Washington D.C. area or online virtual sessions
Ongoing Support
ABRAKADOODLE provides franchisees with continuous operational support including periodic assistance via phone, email, and other methods for daily operations, marketing, advertising, fiscal management, and personnel. Franchisees receive updated Operations Manuals and reports on system improvements. They are required to attend annual regional, national, or international conferences and may be required to attend refresher or follow-up training, potentially for a fee. The franchisor also negotiates volume purchasing arrangements and administers a system-wide advertising fund. Training for replacement managers is available, with fees if requested more frequently than every two years.
Franchise Requirements
Ideal Candidate Profile
ABRAKADOODLE is seeking hands-on, dedicated franchisees who will personally manage their business at all times, providing full-time attention. Ideal candidates should possess strong management skills, experience, and business acumen. They are expected to conduct thorough market research to understand competitors and facilities in their area before signing the agreement. Candidates with prior experience working for an ABRAKADOODLE business may be eligible for discounts.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
ABRAKADOODLE territories are generally defined by 5-digit ZIP codes and/or contiguous county boundaries. A local territory typically includes up to 20,000 qualifying households (defined as having an annual income of $75,000 or more), but can be expanded to include up to 49,999 qualifying households. A regional territory generally encompasses 50,000 to 60,000 qualifying households, though it may include a higher number, typically not exceeding 100,000 qualifying households.
Staffing Notes
ABRAKADOODLE requires the franchisee or a trained manager to personally manage the business at all times, providing full-time attention. Franchisees are responsible for training their own instructors, employees, and independent contractors, with the exception of managers. All managers, instructors, supervisory employees, and independent contractors must sign a confidentiality and non-competition agreement.