Little Kitchen Academy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$436,450 - $880,988
Franchise Fee
$65,000
Min Cash Required
$30,000
Total US Locations
2
Business Summary
Little Kitchen Academy operates Montessori-inspired school-arts and self-improvement academies for children and teenagers. These academies provide cooking classes and related educational experiences. The business uses a distinctive system that includes specific interior design, curriculum, operational standards, training, and marketing approaches.
Corporate History
Little Kitchen Academy USA, Inc. was organized as a Delaware corporation in January 2020. Its parent company, Little Kitchen Academy Ltd., was founded and developed in British Columbia in February 2016. Little Kitchen Academy USA, Inc. began offering franchises in the United States in May 2020. As of December 31, 2024, the parent company operates one Little Kitchen Academy location in Canada, and there are eight franchised locations in Canada. Little Kitchen Academy USA, Inc. operates two company-owned locations in the United States.
Financial Overview
Investment Range
$436,450 - $880,988
Franchise Fee (Low)
$65,000
Franchise Fee (High)
$65,000
Minimum Cash Required
$30,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$273,700
Equipment Costs (High)
$516,700
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Little Kitchen Academy's financial condition, as noted in the FDD's Special Risks section, raises questions about its ability to provide services and support to franchisees. The independent auditor's report highlights that the company experienced operational losses and net cash outflows in 2024, leading to substantial doubt about its ability to continue as a going concern. However, management believes this doubt has been alleviated because the ultimate parent company has committed to providing necessary funding to ensure the company has sufficient liquidity for at least the next twelve months.
Financing Details
Little Kitchen Academy does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations. Franchisees must arrange their own funding through third-party sources.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
1,600
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Little Kitchen Academy has no litigation history to report. Item 3 of the FDD states that no litigation is required to be disclosed, indicating a clean legal record for the franchisor and its management.
Bankruptcy History
Little Kitchen Academy has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Little Kitchen Academy franchisees must provide written notice between six and nine months before their current agreement expires. They must update and refurbish their facility, equipment, and decor to meet the franchisor's then-current standards. Franchisees must also be in good standing, meaning they are not in default of any agreements and have paid all outstanding monetary obligations. A renewal fee of $15,000 is required, and franchisees must sign a general release of claims and the then-current form of franchise agreement, which may contain materially different terms. Additionally, they must demonstrate the right to maintain possession of their current location or secure a new approved site, and comply with current qualification and training requirements.
Training & Support Program
Franchisor Assistance
Little Kitchen Academy provides pre-opening assistance including written site selection guidelines and advice, and on-site evaluations for the first location (up to two at no charge, additional may incur fees). They also grant access to prototypical design plans, review grand opening promotion plans, and provide operational manuals and a list of approved suppliers. Franchisees and their designated Operating Principal/Academy Director receive initial management training at no additional charge. The franchisor also offers at least two days of on-site opening assistance. Ongoing support includes periodic operational evaluations, advice, and written materials on business management, updated lists of approved suppliers, and access to proprietary software programs for a reasonable fee. Optional additional training programs and seminars, or remedial training upon request, are also available.
Initial Training Hours
48
Training Location
Vancouver, British Columbia, Canada
Ongoing Support
After opening, Little Kitchen Academy provides ongoing support through periodic evaluations of operations and offers advice and written materials on managing the business. They provide updated lists of approved suppliers and may make system-branded merchandise available for resale at a reasonable cost. Additionally, Little Kitchen Academy may offer additional training programs and seminars, or remedial training upon request if deemed necessary, and provide access to proprietary software programs developed for the system, for which a reasonable license fee may be charged.
Franchise Requirements
Ideal Candidate Profile
Little Kitchen Academy seeks franchisees who will designate an Operating Principal. This individual must maintain at least a 10% ownership interest in the franchise and serve as the main person responsible for the business. Unless an Academy Director is appointed, the Operating Principal must dedicate full-time effort to supervising the franchise operations and not engage in other businesses. Franchisees must also designate at least one Academy Director, who must meet Little Kitchen Academy's educational and business criteria, be acceptable to them, and devote full-time effort to the daily operation and management of the franchised business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Little Kitchen Academy territories are defined as a Designated Area, which varies in size based on local market conditions and other factors. Once a site is approved, a Protected Area is defined around the specific location. The actual shape and size of this Protected Area are determined by factors such as population density, income level, and the number of households and businesses in the area. There is no minimum area specified for the Designated Area.
Staffing Notes
Little Kitchen Academy requires franchisees to designate an Operating Principal to be the main individual responsible for the business. They must also designate at least one Academy Director, who must meet the franchisor's educational and business criteria and be acceptable to them. Academy Directors are responsible for the daily operation and management of the franchised business and must dedicate their full-time efforts. The franchisor provides guidance on ideal directors and instructors, their roles, responsibilities, initial hiring needs, and training, covering topics such as scheduling, payroll tracking, and professional standards and boundaries.