Risk Score
Pending analysis
Investment Range
$43,500 - $183,350
Franchise Fee
$20,000
Total US Locations
155
Business Summary
Bricks 4 Kidz operates franchised businesses that offer curriculum-based programs, events, and workshops. These programs are designed to teach STEAM (Science, Technology, Engineering, Arts, and Math) concepts to children aged 3 to 13+ and adults. The teaching methods involve using LEGO® brand bricks, home products, other building STEM products, robotics, animation, coding, and engineering techniques. Bricks 4 Kidz services are provided through various formats, including in-school and afterschool classes, workshops, camps, birthday parties, and online classes, which can be delivered at creativity centers or third-party sites like schools, community centers, and commercial locations.
Corporate History
BFK Franchise Company LLC, known as Bricks 4 Kidz, was established in Nevada on May 19, 2009, and began offering its STEAM-focused educational franchises in July 2009. The company's core business involves providing curriculum-based programs for children and adults using LEGO® bricks and other educational tools. In July 2010, Bricks 4 Kidz was consolidated under Creative Learning Corporation. A significant change occurred on March 18, 2022, when StroomX LLC acquired Bricks 4 Kidz and its trademarks from Creative Learning Corporation, becoming the direct parent. StroomX LLC also acquired affiliates Bricks4Schoolz, B4K eLearning Company, and SF Franchise Company, LLC (Sew Fun), making their programs optionally available to Bricks 4 Kidz franchisees. SF Franchise Company had previously offered Sew Fun franchises from February 2015 but ceased those sales by October 1, 2018.
Financial Overview
Investment Range
$43,500 - $183,350
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$43,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$3,250
Equipment Costs (High)
$82,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Bricks 4 Kidz's financial statements show a significant members' deficit, which was $(1,160,559) in 2022, $(412,903) in 2023, and $(181,535) in 2024. This consistent deficit led the franchisor to include a special risk disclosure warning, stating that Bricks 4 Kidz's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. However, by 2024, Bricks 4 Kidz reported sufficient cash on hand to cover operating expenses for 12 months, an improvement from 3 months in 2022.
Financing Details
Bricks 4 Kidz does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations on their behalf. Franchisees are responsible for securing their own funding through external sources.
Performance Metrics
Total US Locations
155
Franchised Units
135
Corporate Units
20
Avg Square Footage
2,250
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
9
Litigation Summary
Bricks 4 Kidz has been involved in several legal matters, primarily inherited from its predecessor, Creative Learning Corporation. One case, Franventures, LLC v. Creative Learning Corporation and BFK Franchise Company, LLC, was a breach of contract lawsuit that settled in May 2021. Creative Learning Corporation also sued Brian Pappas, its former CEO, in a related case that was settled. A former franchisee, Back and 4th, LLC, filed an arbitration demand in October 2016 alleging breach of contract and seeking rescission of eight franchise agreements. This arbitration settled in April 2018 with Bricks 4 Kidz paying $45,000. Another franchisee, Team Kasa, LLC, filed a lawsuit in New York in February 2017 alleging disclosure violations and misrepresentation, and initiated an arbitration against Bricks 4 Kidz. The arbitration involving BFK Franchise Company LLC was settled in June 2024, although other respondents remain involved in the case. Indy Bricks, LLC also filed an arbitration in November 2017 alleging breach of contract and fraud, which was dismissed after a settlement in April 2020. In governmental actions, Bricks 4 Kidz settled with the Commonwealth of Virginia in June 2016 for alleged violations of the Virginia Retail Franchising Act, paying restitution and penalties. A former affiliate, CI Franchise Company, LLC, also settled with Virginia for similar violations in January 2016. Lastly, the U.S. Securities and Exchange Commission filed a civil complaint against the company and certain former executive officers and directors in August 2017 regarding alleged federal securities law violations, which was resolved for Bricks 4 Kidz in September 2017 without monetary penalties.
Bankruptcy History
Bricks 4 Kidz has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Bricks 4 Kidz franchisees can renew their agreement for an additional 10-year term if they meet specific conditions. To renew, they must be in full compliance with their current Franchise Agreement, provide timely notice of their intent to acquire a successor franchise (between 180 and 220 days before expiration), pay a successor fee equal to 25% of the then-current initial franchise fee, and sign Bricks 4 Kidz's then-current Franchise Agreement. This new agreement may contain materially different terms, including a reduced territory and increased fees. Additionally, franchisees must agree to sign a general release of claims against Bricks 4 Kidz and its affiliates, as well as other required documents.
Training & Support Program
Franchisor Assistance
Before opening, Bricks 4 Kidz assists with mutually agreeing on an office location (if outside the residence), designating the territory and providing a list of schools, identifying required operating assets and proprietary products, providing access to the Operations Manual, and advising on the grand opening advertising program. Bricks 4 Kidz also provides initial training for the franchisee (or managing owner) and a designated manager. During operation, Bricks 4 Kidz provides general guidance and consultation, offers additional or special assistance and training upon request, continues access to the Operations Manual (which may be modified), establishes pricing requirements for products and services, inspects operations for compliance, provides access to confidential information, licenses the use of its Marks, and periodically offers refresher training courses. Bricks 4 Kidz also manages a Marketing Fund, to which franchisees contribute, for advertising, marketing, and public relations programs.
Initial Training Hours
24
Training Location
Milpitas, CA or another designated location
Ongoing Support
After opening, Bricks 4 Kidz provides ongoing support through general guidance and consultation services. Franchisees can request additional or special assistance and training. The franchisor also offers periodic refresher training courses and issues and modifies System Standards, which may require additional investment or higher operating costs for the franchisee. Bricks 4 Kidz reserves the right to establish pricing requirements and inspects business operations for compliance. Franchisees also receive access to confidential information and licenses for the use of the Bricks 4 Kidz Marks. Franchisees are required to attend a biennial conference, incurring a fee per person plus their own travel, accommodation, wages, and meal expenses. If a franchisee or their representative cannot attend with an excused absence, a conference material fee of $1000 is charged, and relevant training materials are provided.
Franchise Requirements
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
Bricks 4 Kidz defines territories based on factors like population density, location, number of schools, average age of the population, and commute time. Territories are typically designated using one or more continuous zip codes and include an agreed-upon number of public and/or private schools, covering preschools, elementary schools, and middle schools.
Staffing Notes
Bricks 4 Kidz requires franchisees to maintain a competent, conscientious, and trained staff, including a fully-trained, full-time manager. This manager can be the franchisee or a Designated Manager, and they must be responsible for direct supervision of the business, devoting full-time efforts to its management and supervision. The franchisee (or managing owner) must remain active in overseeing the business's ongoing activities. If a Designated Manager's role terminates, a replacement must be appointed within 30 days and meet Bricks 4 Kidz's approval. Bricks 4 Kidz establishes System Standards that may regulate staffing levels, personnel identification, and employee qualifications, training, dress, and appearance. However, franchisees retain sole responsibility for all employment decisions, including hiring, firing, and remuneration.