Code Ninjas Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$68,500 - $348,250
Franchise Fee
$27,000
Total US Locations
244
Business Summary
Code Ninjas operates learning centers that offer child-focused educational programs in subjects like computer programming, coding, math, logic, and teamwork. These centers, which can be full-sized Learning Centers or smaller Studio Centers, feature a distinctive system including unique services and products, specific signage, interior and exterior design, standardized operational procedures, curriculum materials, management software, and marketing programs.
Corporate History
Code Ninjas, LLC was formed as a Texas limited liability company on August 17, 2016. The company commenced offering "Code Ninjas" franchises shortly after its formation in November 2016. Code Ninjas operates learning centers that provide child-focused educational programs in subjects like computer programming, coding, math, logic, and teamwork.
Financial Overview
Investment Range
$68,500 - $348,250
Franchise Fee (Low)
$27,000
Franchise Fee (High)
$40,000
Royalty %
8%
Marketing %
2.25%
Equipment Costs (Low)
$4,000
Equipment Costs (High)
$180,000
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Code Ninjas' financial condition raises questions about its ability to provide services and support to its franchisees. The company reported a net loss of $690,022 in 2024, a notable decline from its net income of $179,594 in 2023. Its cash and cash equivalents significantly decreased to $217,682 in 2024 from over $1 million in 2023, primarily due to net cash used in operating activities. Code Ninjas also has a substantial members' deficit, indicating negative equity, and carries significant related party payables and notes.
Financing Details
Code Ninjas does not offer any direct or indirect financing to help franchisees establish their business. Additionally, Code Ninjas does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
244
Franchised Units
239
Corporate Units
5
Avg Square Footage
1,400
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Code Ninjas has disclosed two legal actions in its history. One case, filed in September 2019, involved Code Ninjas suing a franchisee for violating non-compete obligations, while the franchisee counter-sued alleging misrepresentations about the franchise opportunity. Code Ninjas denied these allegations. This dispute was settled in April 2020, with both parties dismissing their claims, and the franchisee agreeing to post-termination obligations without any money exchange. The second case, filed in October 2019, is a class action against Wilmington Trust and its shareholders, concerning an employee retirement plan and ERISA. One of Code Ninjas' Directors is named in this suit. This case continues in the U.S. District Court in Delaware as of October 2023.
Bankruptcy History
Code Ninjas has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Code Ninjas franchise, franchisees must provide timely written notice of their intent to renew between 9 and 12 months before the current term ends. They must remodel and refurbish their Learning Center to meet Code Ninjas' then-current standards for new locations and ensure full compliance with the Franchise Agreement and all financial obligations throughout the term and at the time of renewal. Franchisees are also required to sign Code Ninjas' then-current form of franchise agreement, which may have materially different terms, pay a renewal fee of $3,500, and execute a general release of claims. Furthermore, they must meet current personnel and training requirements, provide all requested financial reports, and demonstrate their right to occupy the Accepted Location for the entire renewal term.
Training & Support Program
Franchisor Assistance
Code Ninjas provides both pre-opening and ongoing assistance to its franchisees. Before opening, Code Ninjas offers site selection guidelines, counseling, and one on-site evaluation. They review design plans for the Learning Center, provide a copy of the Brand Manual, offer initial training, help develop the Grand Opening Marketing Program, and inspect the Learning Center before it opens. On an ongoing basis, Code Ninjas provides periodic assistance in marketing, management, and operations. This includes offering the services of field consultants who visit Learning Centers to give advice, providing ongoing training, and suggesting retail pricing for services and products.
Initial Training Hours
28
Training Location
Remote, self-paced, and in-person in Atlanta
Ongoing Support
Code Ninjas provides ongoing assistance to franchisees in marketing, management, and operations as it determines. This support includes periodic visits from field consultants who offer advice on operations and ongoing training programs. Code Ninjas also provides suggested retail pricing to franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Each Code Ninjas Learning Center is granted a Protected Area, typically encompassing a 1.5 to 2 mile radius around the specific approved location.
Staffing Notes
Code Ninjas requires franchisees to have staff on hand before opening to prepare the Learning Center, undergo training, and for orientation. The franchisor estimates about 35 hours of staff time are needed for pre-opening preparations. Staffing costs depend on local wage rates. If the owner or Designated Principal does not manage the Learning Center full-time daily, franchisees must employ a full-time Center Director who meets Code Ninjas' qualifications and has successfully completed the initial training program. The Center Director will train subsequently hired managers and staff. Code Ninjas may also require franchisees to enroll their employees in web-based training programs.