Imagine Arts Academy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$128,331 - $167,800
Franchise Fee
$49,000
Total US Locations
18
Business Summary
Imagine Arts Academy operates a children's education and entertainment franchise that specializes in art enrichment activities. Imagine Arts Academy businesses offer various programs, including birthday parties, after-school programs, workshops, camps, and special events for children aged 3 to 12. Imagine Arts Academy franchisees run these activities at their own commercial premises or at other locations such as schools, camps, libraries, and private parties.
Corporate History
Imagine Arts Academy was incorporated in Canada on June 5, 2018. Its parent company is 2Inspire, Inc., which is wholly owned by 3908160 Canada Inc. Imagine Arts Academy also has an affiliate, Mad Science Group, Inc., which has been granting franchises for children's science education since 1993. From late 2017 to 2018, Mad Science Group, Inc. offered a pilot art program to some of its franchisees. Imagine Arts Academy began offering its own art enrichment franchises on December 17, 2018, to expand on these activities. Imagine Arts Academy is also an approved supplier of art supplies and equipment for its franchised businesses.
Financial Overview
Investment Range
$128,331 - $167,800
Franchise Fee (Low)
$49,000
Franchise Fee (High)
$49,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$62,100
Equipment Costs (High)
$91,000
Working Capital
$17,300
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Imagine Arts Academy's financial condition, as noted in its Special Risks section, calls into question its financial ability to provide services and support to franchisees. While the company's financial statements show positive retained earnings of $18,664 as of March 31, 2024, it previously had a deficit. Imagine Arts Academy has positive working capital of $25,510 as of March 31, 2024, however, it has a significant long-term liability of $282,781 due to a company under common control, without interest or reimbursement terms. The Independent Auditor's Report for Imagine Arts Academy's financial statements for the year ended March 31, 2024, issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects.
Financing Details
Imagine Arts Academy does not offer any direct or indirect financing to its franchisees. Additionally, Imagine Arts Academy and its affiliates do not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
18
Franchised Units
18
Corporate Units
0
Avg Square Footage
1,600
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Imagine Arts Academy's affiliate, Mad Science Group, Inc., was involved in a legal matter in 2013 with the Securities Division of the Office of the Attorney General of Maryland. The Division alleged that Mad Science Group, Inc. violated several provisions of the Maryland Franchise Law, including making unregistered franchise offers, failing to register disclosure documents, failing to maintain sales records, and not registering franchise advertising. Without admitting guilt, Mad Science Group, Inc. entered into a Consent Order, agreeing to stop violating the law, pursue Maryland franchise registration, offer rescission to two franchisees, refund an initial franchise fee of $13,500 to a former Maryland franchisee, and pay a $5,000 monetary penalty. Imagine Arts Academy has no other disclosed litigation to report.
Bankruptcy History
Imagine Arts Academy has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Imagine Arts Academy franchise agreement, franchisees must provide written notice to Imagine Arts Academy at least six months before their current term ends. They must pay a renewal fee of $5,000 and sign Imagine Arts Academy's then-current franchise agreement, which may have materially different terms, including different fees or a redefined territory. Franchisees must be in full compliance with their current agreement, have no outstanding financial obligations to Imagine Arts Academy or third parties, and upgrade their hardware, software, equipment, and systems to meet Imagine Arts Academy's current standards. They must also sign a general release and purchase any Imagine Arts Academy equipment, products, or services deemed necessary by Imagine Arts Academy, making an advance payment towards these purchases. Finally, franchisees must allow Imagine Arts Academy or its designee to conduct an on-site audit of their business, covering financials and equipment, and pay for any costs if deficiencies are found.
Training & Support Program
Franchisor Assistance
Before opening, Imagine Arts Academy provides franchisees with an initial training program lasting approximately 4 to 7 days, either virtually or on-site. Imagine Arts Academy also makes all necessary specifications, approved supplier lists, and operations manuals accessible to the franchisee. It reviews and approves the franchisee's proposed business location and provides a start-up equipment package. After opening, Imagine Arts Academy offers ongoing support, including electronic access to updated manuals and policies, coordination and approval of advertising materials and strategies, and continuous updates to approved equipment and supplier lists. Imagine Arts Academy provides ongoing training and support as it deems appropriate, regulates quality standards across the franchise network, negotiates group rates for purchases, and organizes annual franchisee conferences or regional meetings. Imagine Arts Academy also uses the Technology Access Fee to develop and implement computer network record-keeping systems and other technology tools to help franchisees manage their business effectively.
Initial Training Hours
79
Training Location
Onsite at franchisee's location or virtually
Ongoing Support
After opening, Imagine Arts Academy provides ongoing support to its franchisees by granting electronic access to updated manuals and policies. It helps coordinate and approve advertising materials and strategies, and continually updates lists of approved equipment and suppliers. Imagine Arts Academy offers ongoing training and support as it deems necessary, regulates quality standards throughout the franchise network, and negotiates group rates for product purchases. It also organizes annual franchisee meetings and conferences and uses the Technology Access Fee to implement computer network record-keeping systems and other technology tools to aid in business management.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Imagine Arts Academy grants franchisees non-exclusive rights within a geographic territory. A standard territory typically contains a population of 200,000 to 300,000 people. These territories are defined using factors such as zip code boundaries, county boundaries, highways, and physical landforms, with population statistics from the United States Department of Education National Center for Education Statistics used for sizing. Imagine Arts Academy reserves the right to split a territory into two or more if its geographical area exceeds 400,000 in population.
Staffing Notes
Imagine Arts Academy requires that the franchised business always be directly supervised on-premises by the franchisee or, if it is a business entity, by a managing owner. Franchisees are solely responsible for hiring, training, compensating, and overseeing all employees, including managers. Imagine Arts Academy's System standards may offer guidance on staffing levels, identifying management personnel, and employee qualifications, dress, and appearance. All instructors must be trained according to Imagine Arts Academy's standards, and due to extensive contact with children, franchisees must conduct criminal record checks and fingerprinting on all instructors as required by law and the manuals. Employees, including managers, must sign confidentiality agreements, and accurate staff records must be maintained.