Risk Score
Pending analysis
Investment Range
$22,750 - $68,250
Franchise Fee
$13,410
Total US Locations
17
Business Summary
KidzArt LLC offers franchises for businesses that provide art instruction and products to children and adults under the mark KidzArt®, and educational science and technology enrichment programs for children ages 4 to 14 under the mark Club Scientific®. These businesses typically operate from a home-based office and offer a variety of portable classroom programs. KidzArt programs include after-school classes, Mommy & Me activities, pre-school day care, classes for elementary, middle, and high school students, adult art classes (Palette Up!), senior art programs, birthday parties, fundraising activities, and summer camps. Club Scientific focuses on science and technology enrichment through after-school classes, labs for various age groups and families, birthday parties, assemblies, and summer camps.
Corporate History
KidzArt LLC, a Nevada limited liability company, was originally formed as KidzArt Texas, LLC in July 2002. The company changed its name to KidzArt LLC in August 2012. Since July 2002, KidzArt LLC has offered franchises for KidzArt® businesses, which provide art instruction and products to children and adults. The company later expanded its offerings to include franchises for Club Scientific® educational science and technology enrichment programs for children ages 4 to 14. Robert R. Denton and Mary A. Denton became co-owners of KidzArt LLC in June 2021.
Financial Overview
Investment Range
$22,750 - $68,250
Franchise Fee (Low)
$13,410
Franchise Fee (High)
$35,000
Royalty %
8%
Marketing %
1%
Equipment Costs (High)
$15,000
Working Capital
$1,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
KidzArt LLC appears to be in good financial health. Its audited financial statements for 2023 and 2022 received an unqualified opinion, indicating sound financial reporting with no going concern qualifications. The company has demonstrated positive net income and strong cash flow from operating activities in both years. Cash and cash equivalents have significantly increased from $162,839 in 2022 to $340,143 in 2023. Additionally, KidzArt LLC fully repaid a $15,000 loan from its members in 2023, reflecting a healthy financial position.
Financing Details
KidzArt LLC does not offer any direct or indirect financing to its franchisees. Additionally, KidzArt LLC does not guarantee any lease or other financial obligations for its franchisees. Franchisees must arrange their own funding through external sources.
Performance Metrics
Total US Locations
17
Franchised Units
17
Corporate Units
0
Avg Square Footage
600
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
KidzArt LLC has no pending or concluded litigation that is required to be disclosed in Item 3 of its FDD. However, Item 13 notes that KidzArt LLC was involved in a lawsuit in 2008 with Kidsart, Inc. regarding a federal trademark application. This dispute was settled in November 2009, with Kidsart, Inc. allowed to use the Kidsart trademark in ten specific California counties, while KidzArt LLC was permitted to use its KIDZART trademark in the rest of the U.S. for educational services and ART INNOVATORS in those ten California counties. This past litigation is not considered recent based on the FDD's issuance date.
Bankruptcy History
KidzArt LLC has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, KidzArt LLC franchisees must notify the franchisor between 6 to 12 months before their current agreement expires. They must be in good standing, having satisfied all monetary obligations to KidzArt LLC, its affiliates, and suppliers. Franchisees are also required to sign a new franchise agreement (which may have different terms), execute a general release, and meet the current standards for new KidzArt LLC franchisees. Additionally, a renewal fee (ranging from $1,000 for a Teach Territory to $2,500 for a Co-Branded Territory) must be paid, and franchisees must provide evidence they have the right to remain in possession of their business premises. KidzArt LLC may also require signing a Renewal Addendum.
Training & Support Program
Franchisor Assistance
KidzArt LLC provides comprehensive support to its franchisees. Before opening, KidzArt LLC assists with providing initial art or science supplies and marketing materials, guidelines for program facilities, and access to confidential operations and curricula manuals. Franchisees and a second person receive initial training. KidzArt LLC also sets up a custom website for the franchised business and offers initial guidance for the first week of operation. During operation, KidzArt LLC offers ongoing research and development of new services, administration of advertising funds, and provides an information base through a franchisee portal. Support and guidance are available in person, by phone, email, or video. Franchisees are required to attend annual conferences, and KidzArt LLC reviews local advertising materials. KidzArt LLC also provides operational reviews and advises franchisees based on submitted reports and inspections to ensure compliance with system standards.
Initial Training Hours
38
Training Location
Lake Cormorant, Mississippi
Ongoing Support
KidzArt LLC offers ongoing support to its franchisees after opening. This includes researching and developing new services and methods, providing information on these developments, and administering advertising funds. Franchisees have access to an information base through the KidzArt portal or another method. KidzArt LLC provides support and guidance via in-person meetings, telephone, email, video, or webinars regarding business operations. Annual conferences are held to discuss industry changes, operational techniques, product and service developments, personnel training, bookkeeping, accounting, performance standards, and advertising programs, with attendance being mandatory for franchisees. KidzArt LLC also reviews all advertising materials franchisees submit for local use and performs operational reviews to ensure compliance with system standards.
Franchise Requirements
Ideal Candidate Profile
KidzArt LLC seeks franchisees with entrepreneurial and managerial abilities who demonstrate a strong focus on customer service and are committed to hands-on, full-time operation of their business. Candidates must successfully pass credit and criminal background checks. The franchisor offers a 10% discount on initial franchise fees to qualified veterans.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Full-Time
Territory Type
Exclusive
Staff Count
1
Territory Size Requirements
KidzArt LLC defines its territories based on 'qualifying households' (*qhh), which are homes with an annual income over $75,000. A standard Teach territory includes approximately 15,000 *qhh, while a Teach Plus territory encompasses 30,000 *qhh or more. Franchisees can expand their territory beyond these standard sizes by purchasing additional *qhh at a rate of $0.40 per *qhh for single-brand franchises or $0.80 per *qhh for co-branded franchises. Territories are geographically delineated by factors such as counties, zip codes, boundary streets, or highways.
Staffing Notes
KidzArt LLC requires the franchisee, or a designated Managing Owner, to devote full-time attention and provide direct, day-to-day supervision of the franchised business. For a standard 'Teach' territory, the business can typically be operated by the owner alone or with 1-2 part-time staff. For 'Teach Plus' territories, franchisees are expected to hire additional teachers to support a larger business model. Franchisees are permitted to train one additional employee as a Certified Instructor themselves. However, all other Certified Instructors or Camp Counselors must be trained and certified by KidzArt LLC's designated Certified Trainers. All teacher-employees must undergo background checks and fingerprinting, with the franchisee covering these costs if not covered by the host school.