Risk Score
Pending analysis
Investment Range
$75,287 - $130,187
Franchise Fee
$28,000
Total US Locations
69
Business Summary
Class 101 operates a business system that provides advice, guidance, and training to high school students and their parents. The services help students prepare for, select, apply to, and pay for college under the CLASS 101® trademarks and system. Class 101 offers both individual franchise opportunities and multi-unit development agreements.
Corporate History
Class 101 Franchise, LLC was formed on April 6, 2022, as a Delaware limited liability company and operates solely under the "Class 101" name. Its predecessor, Class 101, Inc., began offering Class 101 franchises in June 2007. Class 101 Franchise, LLC acquired the assets of Class 101, Inc. on April 11, 2022, and has been offering franchises since July 2022. Class 101 Franchise, LLC is a wholly owned subsidiary of Unleashed Brands, LLC, which has several other franchised brands under its umbrella, including Urban Air Adventure Parks, Snapology, Premier Martial Arts, The Little Gym, XP League, Sylvan Learning, and Water Wings.
Financial Overview
Investment Range
$75,287 - $130,187
Franchise Fee (Low)
$28,000
Franchise Fee (High)
$39,900
Royalty %
8%
Marketing %
6%
Equipment Costs (Low)
$8,500
Equipment Costs (High)
$37,000
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
UA Holdings, LLC, the parent company of Class 101, reported significant net losses of $68.67 million in 2024 and $59.62 million in 2023, along with negative cash flow from operating activities of $7.17 million in 2024. The company has an accumulated deficit of $128.22 million as of December 31, 2024. While the independent auditor issued an unqualified opinion on the financial statements, indicating fair presentation in all material respects, these figures suggest that UA Holdings, LLC has faced recent financial challenges.
Financing Details
Class 101 does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations for them.
Performance Metrics
Total US Locations
69
Franchised Units
69
Corporate Units
0
Avg Square Footage
1,200
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Class 101's parent company, Unleashed Services, LLC, was involved in a lawsuit in Texas from 2023 to 2024 with a former executive, Thomas Pabin, concerning an employment agreement. The dispute involved claims of breach of contract, fraud, and indemnification, and was resolved in October 2024 when Unleashed Brands, LLC bought out Mr. Pabin's remaining ownership interests in Class 101 for $275,000, leading to the dismissal of all claims. In other past litigation, an affiliate, Snapology, faced an administrative proceeding in Maryland in 2015 for offering and selling franchises without proper registration. Snapology entered a consent order, agreeing to cease violations, complete registration, and offer rescission to affected franchisees. Another affiliate, UATP Management, LLC (Urban Air Adventure Parks), was involved in a lawsuit filed in 2018 against a distributor, Leap of Faith Adventures, LLC. UATP alleged breach of contract, tortious interference, fraud, and fraudulent inducement, seeking over $6.5 million. The distributor filed counterclaims. The case concluded in September 2022 with a confidential settlement where UATP paid $5 million to the distributor. Premier Franchising Group, LLC (Premier Martial Arts), another affiliate, entered a consent order with California in 2021 related to offering and selling franchises without registration and omitting material facts. Premier Martial Arts agreed to refrain from violations, pay a $10,000 administrative penalty, and update its disclosure documents.
Bankruptcy History
Class 101 reports no bankruptcy information for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Class 101 franchise for two additional five-year terms, franchisees must provide written notice 8 to 12 months before the current term expires. They must be in good standing, with no defaults on any agreements and no past due monetary obligations to Class 101, its affiliates, or suppliers. Franchisees are required to renovate and upgrade their business premises to meet Class 101's then-current image, ensure they have the right to possess the premises, comply with all current training requirements, and satisfy Class 101's financial responsibility standards. Additionally, they and all guarantors must execute Class 101's then-current form of general release, and they must not have a continued pattern of non-compliance with quality standards. Upon satisfying these conditions, franchisees will sign Class 101's then-current franchise agreement, which may contain materially different terms, including royalty fees and advertising obligations.
Training & Support Program
Franchisor Assistance
Class 101 provides franchisees with several layers of support. Before opening, Class 101 reviews proposed sites, provides design and equipment specifications, offers 2-3 days of remote pre-opening assistance for the first business (on-site or for subsequent units may incur a fee), and conducts an initial training program. Franchisees also receive access to Class 101's operations manual. Ongoing assistance includes providing expertise in management, sales promotion, and service concepts through various channels like on-site visits, written materials, meetings or seminars, telephone and email communications. Class 101 also establishes and administers membership, gift card, loyalty, and insurance programs and approves promotional and marketing materials.
Initial Training Hours
34
Training Location
Online and at Class 101 designated locations (including Bedford, Texas)
Ongoing Support
Class 101 provides ongoing assistance through various means such as on-site visits, distributing materials, organizing meetings or seminars, and communication via telephone and email. Franchisees are required to attend annual regional training sessions and periodic conferences to discuss system developments. Class 101 also retains the right to require additional mandatory continuing training programs.
Franchise Requirements
Ideal Candidate Profile
Class 101 seeks individuals or business entities with sufficient financial resources, business experience, and good moral character. Ideal candidates should possess the aptitude and ability to operate a franchise business, meeting educational, managerial, and business standards. The Designated Manager, who may be an owner, must devote full-time, hands-on effort to the daily supervision and operation of the business and successfully complete Class 101's initial training program.
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
Protected
Territory Size Requirements
Class 101 Protected Areas are typically defined by zip codes, geographic boundaries, or a radius around an approved location. While there is no minimum size, these areas generally have an average household income above $65,000, a population of approximately 8,000 students aged 14 to 18, and at least six public or private high schools whose districts are contiguous.
Staffing Notes
Class 101 requires its franchisees to employ a sufficient number of qualified and competent personnel. The business must be supervised full-time by a Designated Manager, who is responsible for daily operations and training employees according to Class 101's standards, including customer service. Franchisees are exclusively responsible for all labor and employment-related matters, such as hiring, promotion, compensation, and discipline. Class 101 emphasizes that it does not control these day-to-day employment decisions. Additionally, franchisees must maintain a minimum of 20 active and paying customers annually.