Inter-State Studio Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$13,100 - $51,450
Franchise Fee
$2,500
Total US Locations
44
Business Summary
Inter-State Studio offers franchised businesses that provide school pictures, undergraduate portraits, sports and event portraits, and yearbooks. Inter-State Studio primarily serves schools, sports teams, and community organizations, selling products to the families of children associated with these groups. Franchisees operate the business, often from a home office, by securing service agreements with these organizations to be their official photographer and publisher.
Corporate History
Inter-State Studio's affiliate, Inter-State Studio & Publishing Co. (ISS Publishing), has been operating this type of photography and publishing business since 1933. The franchising entity, Inter-State Studio Franchise, LLC, was formed in Delaware in September 2020 and began offering franchises in October 2020. ISS Publishing primarily enters into annual service agreements with schools and organizations for photography and yearbook services.
Financial Overview
Investment Range
$13,100 - $51,450
Franchise Fee (Low)
$2,500
Franchise Fee (High)
$12,500
Royalty %
7%
Marketing %
3%
Equipment Costs (High)
$17,500
Working Capital
$7,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as noted in the special risks section, calls into question Inter-State Studio Franchise, LLC's ability to provide services and support to its franchisees. The balance sheet shows that current assets are less than current liabilities for the year ended December 31, 2024, although members' equity turned positive in 2024 after a deficit in 2023.
Financing Details
Inter-State Studio may offer financing for the Initial Franchise Fee, depending on the franchisee's qualifications and credit check. This financing can be for up to 24 months at an annual interest rate of up to 18% or the maximum rate allowed by law. Payments are made in four equal installments twice per calendar year. There are no prepayment penalties. Franchisees must sign a Promissory Note and Personal Guaranty. If payments are not made on time, Inter-State Studio can demand immediate payment of the full outstanding balance and seek collection costs and attorney's fees. Inter-State Studio also has the right to terminate the franchise agreement for late payments. Franchisees waive their rights to notice of collection actions and to assert defenses against collection. Inter-State Studio does not currently sell these notes to third parties but may do so in the future. Aside from this, Inter-State Studio does not offer other direct or indirect financing, nor does it guarantee loans or other obligations.
Performance Metrics
Total US Locations
44
Franchised Units
18
Corporate Units
26
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Inter-State Studio has no litigation to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Inter-State Studio has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise agreement for up to two additional five-year terms, Inter-State Studio franchisees must provide written notice 180 to 360 days before the current term ends. They must be in full compliance with the current franchise agreement, having paid all financial obligations. The Operating Principal and an approved Owner must complete any new or refresher training programs. Franchisees will need to sign Inter-State Studio's then-current standard franchise agreement, which may have different terms, and sign a general release of claims. If operating from a physical office, they must also remodel the premises to meet current brand standards. Inter-State Studio reserves the right to modify the territory size upon renewal to conform to current standards.
Training & Support Program
Franchisor Assistance
Inter-State Studio provides a range of support services. Before opening, the franchisor designates the franchisee's territory and provides specifications for photography and computer software. They also conduct an initial training program for the Operating Principal, grant access to the confidential Operations Manual, and provide lists of approved suppliers and products. If equipment is purchased from Inter-State Studio, they will ship it but not install it. Ongoing assistance includes advisory services on business operations, products, purchasing, marketing, and administrative procedures. Inter-State Studio also offers accounting, collection, and back office support, provides updated Operations Manual materials, and supplies marketing packets for prospective accounts. For standard franchisees, on-site opening assistance for up to three days is available at Inter-State Studio's discretion. They may also assist with establishing product pricing. Computer systems and proprietary Management Software are provided, with access to Google Suite included in the monthly Technology Fee. Franchisees are also required to incorporate upgrades and updates to the Computer System.
Initial Training Hours
120
Training Location
Sedalia, Missouri
Ongoing Support
After opening, Inter-State Studio provides ongoing advisory services for business operations, including product offerings, purchasing, marketing, and administrative procedures. Franchisees receive accounting, collection, and back-office support, as well as updated materials for the Operations Manual and marketing packets. Inter-State Studio also offers additional training as needed, which may be subject to a fee. For standard franchisees, there are four mandatory seasonal photography training sessions throughout the first year of operations, focusing on different types of photography shoots. Franchisees may also be required to attend mandatory franchise conventions and meetings, for which a registration fee may apply.
Franchise Requirements
Ideal Candidate Profile
Inter-State Studio seeks two types of franchisees: standard and conversion. Standard franchisees are individuals with little to no prior experience in the portrait or photography industry. Conversion franchisees are owners of existing photography businesses who want to merge and convert their operations into an Inter-State Studio business. All Owners, Operating Principals, employees, and independent contractors must undergo and pass a criminal background check. No previous photography experience is strictly required, as Inter-State Studio provides comprehensive training. The Operating Principal, who must be an Owner, is required to manage the business on a full-time, direct, on-site basis and cannot have other significant management responsibilities that conflict with their franchise obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
full-time
Territory Type
Limited
Territory Size Requirements
Inter-State Studio territories are generally defined by a student enrollment population of approximately 30,000 to 50,000 students at the time of signing the franchise agreement. However, territory size can also be influenced by other factors such as the number of schools, proximity of schools, home values, average income, proximity to other Inter-State Studio businesses, and the nature of urban, suburban, and rural areas. Territories may be modified upon renewal to conform to then-current standards.
Staffing Notes
Inter-State Studio franchisees are responsible for hiring all their employees and independent contractors, and for all employment-related decisions including terms, scheduling, benefits, discipline, compensation, training, and compliance with labor laws. Franchisees must implement an employee training program according to Inter-State Studio's requirements and ensure all employees have necessary licenses and certifications. The Operating Principal must provide direct, on-site supervision of the business at all times. All Owners, Operating Principals, employees, and independent contractors must undergo and pass a criminal background check to Inter-State Studio's satisfaction before being hired or engaged.