Kidcreate Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$63,045 - $1,438,370
Franchise Fee
$40,500
Total US Locations
25
Business Summary
Kidcreate Studio offers franchises for businesses that provide art lessons and education for children aged 18 months through 12 years. These services are delivered through classes, camps, and themed parties, and the businesses also sell retail art-related items. Franchisees have the option to enhance their offerings with specialized curriculum modules such as Craft Academy, Kidscientific (STEM-based science), Little Hands Discovery (sensory play), and Extreme Art. Kidcreate Studio businesses can operate in two formats: a mobile 'on-the-go' model, or a 'Two in One Studio Business' that combines mobile services with a physical studio location.
Corporate History
Kidcreate Studio Franchising, LLC was formed in Texas on December 10, 2015, and began offering franchises for Kidcreate Two in One Studio Businesses in May 2016. In August 2020, it expanded to offer Kidcreate Mobile Studio Businesses, previously known as 'Kidcreate On the Go Businesses.' The underlying Kidcreate Studio business concept was established by its parent company, Lara Schinke-Olson, Inc. (LSO), which has been operating a Kidcreate Two in One Studio Business since 2007. LSO owns the trademarks and licenses them to the franchisor.
Financial Overview
Investment Range
$63,045 - $1,438,370
Franchise Fee (Low)
$40,500
Franchise Fee (High)
$110,000
Royalty %
8%
Marketing %
1%
Equipment Costs (High)
$305,000
Working Capital
$12,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Kidcreate Studio Franchising, LLC's financial health raises concerns regarding its ability to provide services and support to franchisees. As noted in the FDD's Special Risks section, the franchisor's financial condition, as shown in its audited financial statements, calls into question its financial capacity to fulfill its obligations.
Financing Details
Kidcreate Studio Franchising, LLC does not offer any direct or indirect financing to its franchisees. This means that franchisees are responsible for securing all necessary funding for their business operations and initial investment through third-party lenders. Kidcreate Studio Franchising, LLC also does not guarantee any loans, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
25
Franchised Units
24
Corporate Units
1
Avg Square Footage
1,250
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Kidcreate Studio Franchising, LLC has no litigation to report in Item 3 of its FDD. This means that Kidcreate Studio Franchising, LLC, its predecessors, parents, affiliates, or individuals named in Item 2 have not been involved in any material litigation that is required to be disclosed by franchise law.
Bankruptcy History
Kidcreate Studio Franchising, LLC has no bankruptcy history to report in Item 4 of its FDD. This means that Kidcreate Studio Franchising, LLC, its predecessors, parents, affiliates, or individuals named in Item 2 have not been involved in any bankruptcy proceedings that are required to be disclosed by franchise law.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Kidcreate Studio franchisees must meet several conditions. These include providing written notice, being in full compliance with the current franchise agreement and all system standards at both the time of notice and the start of the renewal term. Franchisees must also update or replace operating assets if required, pay a successor franchise fee equal to 10% of the then-current initial franchise fee and any initial module fees, and retain or secure rights to an approved studio location with renewed lease agreements. Additionally, franchisees must sign the franchisor's then-current franchise agreement and ancillary documents for the successor term, which may have different terms and conditions. They also need to complete any additional training programs at their own expense.
Training & Support Program
Franchisor Assistance
Kidcreate Studio Franchising, LLC provides significant assistance to its franchisees. Before opening, Kidcreate Studio helps with site selection, evaluation, lease review, and construction project management for studio businesses, including schematic design review and approval of construction plans. It advises on pre-opening procedures, assists with initial inventory ordering, and provides implementation services for database management and class registration software. Franchisees receive one copy of the confidential Franchise Operations Manual and a list of approved suppliers. For the first Kidcreate Business, up to two individuals (the franchisee or operating owner and a designated manager) receive a no-cost Initial Training Program (88-90 hours) which includes self-study, classroom, and on-the-job training. For studio businesses, up to three days of on-site training are provided before and during the grand opening. Kidcreate Studio also provides templates for promotional materials and grand opening marketing consultation. Ongoing support includes advice on business operations, customer service standards, staffing, class types, supply chain management, and marketing. Kidcreate Studio maintains and administers system websites for advertising and promotion, reviews requests for new products/suppliers, and approves marketing materials. Additional training is available if needed or requested, for a fee. Kidcreate Studio also manages a Brand Fund for system-wide marketing and may require participation in local advertising cooperatives. It provides a Computer System for managing daily workflow, customer scheduling, and data collection, and offers optional curriculum modules.
Initial Training Hours
90
Training Location
Minneapolis, Minnesota and/or virtually
Ongoing Support
Kidcreate Studio provides continuous guidance to its franchisees based on reports and inspections, covering operational procedures, customer service, employee qualifications, class types, hours, supply management, brand usage, marketing, and administrative practices. This guidance is shared through the Franchise Operations Manual, bulletins, electronic media, phone calls, and meetings. The franchisor also updates System Standards, licenses confidential information, and maintains system-wide websites. Kidcreate Studio reviews requests for new products, suppliers, and marketing materials. Optional assistance may include periodic on-site visits to studios, administration of a Brand Fund for marketing, and hosting national or regional conferences. Franchisees also get access to the Computer System for daily workflow, customer scheduling, and data management.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Kidcreate Studio franchisees receive a territory that generally contains approximately 50,000 children aged 0 to 14. The boundaries of this territory can be defined using contiguous zip codes, street boundaries, or county boundaries, and may also be depicted on a map attached to the franchise agreement.
Staffing Notes
Kidcreate Studio franchisees are responsible for hiring, supervising, and managing their own employees or independent contractors for the Kidcreate Business. This includes all employment decisions such as hiring, firing, training, setting pay, and ensuring compliance with labor laws. The franchisor explicitly states it does not have the power to hire or fire franchisee employees, and all staff are solely the franchisee's employees, not the franchisor's. Franchisees must inform their employees of this independent employment relationship and use their legal name on all employee-related documents. The franchisor's authority to certify employees for certain functions does not imply control over employment decisions.