Drama Kids Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$48,000 - $57,000
Franchise Fee
$36,125
Total US Locations
41
Business Summary
Drama Kids International, Inc. operates Drama Kids Businesses, which offer drama-based educational programs for children and teenagers aged 4 to 17. These programs use a progressive curriculum to help students develop acting, public speaking, creative thinking, leadership, confidence, self-esteem, and positive life skills. The business provides weekly in-person classes during the school year and various themed summer camp programs. Students can also participate in "Take 2" performance classes for additional opportunities, though new franchisees are not required to offer these during their first year. Drama Kids classes are presented at various host sites like schools, day care centers, and community centers, rather than requiring a commercial office.
Corporate History
Drama Kids International, Inc. (DKI) was founded in December 1999 as a Florida corporation. DKI began offering franchises for Drama Kids Businesses in April 2000. It operated a company-owned Drama Kids Business in Howard County, Maryland, from August 2000 to July 2008, which was then sold to a franchisee. Since that time, Drama Kids International, Inc. has not operated any company-owned Drama Kids Businesses. The current President of DKI has personally owned and operated a franchised Drama Kids Business in Hillsborough County, Florida, since September 2014.
Financial Overview
Investment Range
$48,000 - $57,000
Franchise Fee (Low)
$36,125
Franchise Fee (High)
$42,500
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$500
Equipment Costs (High)
$2,000
Working Capital
$3,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Drama Kids International, Inc. appears to be in a stable financial position, having moved from a net loss in 2022 to positive net income and increased cash flow in 2023 and 2024. The company's working capital has also improved significantly, showing it has enough short-term assets to cover its immediate debts. The independent accountant's review did not raise any material concerns about Drama Kids International, Inc.'s ability to continue operations.
Financing Details
Drama Kids International, Inc. does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding through external sources.
Performance Metrics
Total US Locations
41
Franchised Units
41
Corporate Units
0
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Drama Kids International, Inc. has a clean legal record with no litigation cases or legal disputes to report as of the FDD issuance date.
Bankruptcy History
Drama Kids International, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their franchise, Drama Kids International, Inc. franchisees must be in substantial compliance with the terms of their expiring agreement, be financially solvent, and not have abandoned the business or be operating it in a way that endangers public health or safety. They must not have been convicted of a felony or a crime involving moral turpitude, consumer fraud, or any other offense that could negatively affect the brand. Additionally, franchisees must execute Drama Kids International, Inc.'s then-current franchise agreement for the renewal term, which may contain materially different terms, including potentially higher fees or advertising contributions, and pay the specified renewal franchise fee.
Training & Support Program
Franchisor Assistance
Drama Kids International, Inc. provides pre-opening assistance that includes an initial training program comprising Act Up! Classroom Training and DKI Quick Start Training. Franchisees receive an electronic copy of the Franchise Operations Manual, proprietary Drama Kids curriculum materials, and general advice on identifying suitable teaching locations within their territory. They also get guidance on required products and equipment, and assistance with implementing an initial advertising and promotional program. Ongoing assistance includes periodic support via email, telephone, or other methods for daily operations, marketing, advertising, financial management, and personnel issues. Drama Kids International, Inc. informs franchisees of mandatory specifications and procedures, offers advice based on reports or inspections, and provides updated curriculum materials for classes and summer camps. Franchisees also receive a customized web page linked to the national website and advice on advertising and marketing. Additional or refresher training may be offered, potentially for a fee. Optionally, Drama Kids International, Inc. may modify the System, make periodic visits to the business (with reimbursement for expenses and charges if requested by the franchisee), administer a National Advertising and Promotional Fund, and hold national or regional conferences.
Initial Training Hours
46
Training Location
Tampa, Florida, with online/webinar sessions
Ongoing Support
After opening, Drama Kids International, Inc. franchisees receive periodic support via email, telephone, or other methods for daily operations, marketing, advertising, financial management, and personnel issues. The franchisor informs them of mandatory specifications and procedures, offers advice based on reports or inspections, and provides updated curriculum materials for in-person classes and summer camps. Franchisees also get a customized web page linked to the national website and guidance on advertising and marketing. Additional training, including refresher courses or remedial training, may be required or requested, potentially for an additional fee. Drama Kids International, Inc. may also hold periodic national, regional, or video conferences, with mandatory attendance for the first three conferences and then two out of every four thereafter; a registration fee may apply for in-person meetings.
Franchise Requirements
Ideal Candidate Profile
Drama Kids International, Inc. seeks franchisees (or their approved managers) who meet educational, personal, managerial, and business experience standards. Ideal candidates should possess a good moral character, a strong business reputation, and the aptitude and ability to operate a Drama Kids Business. They must also have adequate financial resources, be financially responsible with a good credit rating, and have no direct or indirect ties to competitors. Franchisees or their managers are expected to be principally responsible for day-to-day operations and successfully complete the 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
Supervisory
Territory Type
Exclusive
Territory Size Requirements
Drama Kids International, Inc. generally defines a standard territory to include a maximum population of 500,000 people. Territories are determined using county and school district boundaries, US zip codes, and other geographic and population data. The franchisor also considers household income levels and the number of public and private schools within the area, often utilizing demographic studies from the U.S. Census Bureau.
Staffing Notes
Drama Kids International, Inc. requires the franchisee to either directly operate the business or appoint an approved Manager. This Manager must meet the franchisor's criteria, be responsible for day-to-day operations and communication with the franchisor, and successfully complete the initial training program. If a Manager is replaced, the new Manager must also complete training at the franchisee's expense. All Managers, lead teachers, and non-owner officers of the franchisee entity must sign a Confidentiality and Noncompetition Agreement. Additionally, all teachers and personnel with access to confidential information must sign a Confidentiality Agreement. Franchisees are responsible for all aspects of their employees' management, including training, wages, benefits, and compliance with labor laws.