Little Medical School Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$58,200 - $226,900
Franchise Fee
$18,000
Total US Locations
34
Business Summary
Little Medical School is a business that offers curriculum-based educational programs centered on medicine, science, and good health for children aged four to 14. Little Medical School utilizes proprietary curricula with multi-sensory learning and interactive activities to teach children about the world of medicine. The business primarily provides after-school programs, summer camps, and special event programs, such as in-school workshops and weekend programs. Franchisees can operate Little Medical School as a mobile business, managed from a home-based administrative office, offering services at authorized third-party locations like schools, hospitals, or community centers. Franchisees also have the option to establish a fixed retail location, referred to as a Center.
Corporate History
LMS Franchising, LLC, operating as Little Medical School, was established in Missouri on May 21, 2014. The company's primary business is to operate the Little Medical School franchise system, which provides educational programs focused on medicine and health for children. Little Medical School began offering franchises in October 2014 and does not have any predecessors or parent company. It has several affiliates, including Mason MedStat Media, LLC (established 2010), LMS Wholesale, LLC (established 2019), and Dr. Genie's Kids Inc. (established 2016), among others, which serve as designated suppliers or potential partners for certain charity programs.
Financial Overview
Investment Range
$58,200 - $226,900
Franchise Fee (Low)
$18,000
Franchise Fee (High)
$60,000
Royalty %
8%
Equipment Costs (High)
$130,000
Working Capital
$14,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Little Medical School's financial statements reflect a challenging financial condition. The franchisor's financial position, including a deficit in members' equity, raises questions about its ability to consistently provide services and support to franchisees. The auditor's report mentions that management is required to evaluate conditions or events that could raise substantial doubt about Little Medical School's ability to continue as a going concern within one year, though the auditor did issue an unqualified opinion. Cash and cash equivalents are relatively low. Prospective franchisees should carefully review these financial statements when considering the investment.
Financing Details
Little Medical School does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure their own funding for the initial investment and ongoing operations, as Little Medical School will not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
34
Franchised Units
30
Corporate Units
4
Avg Square Footage
1,750
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Little Medical School has disclosed one past legal action. In January 2019, a Consent Order was issued by the Securities Commissioner of Maryland. This action was related to allegations that Little Medical School violated Maryland Franchise Law by accepting a signed Franchise Agreement in 2018 one day after its Maryland registration had expired and without the franchisee executing a required Maryland addendum. Little Medical School neither admitted nor denied the allegations. Under the Consent Order, the franchisor agreed to cease unauthorized franchise sales in Maryland, diligently pursue registration completion, and offer to rescind the Franchise Agreement involved in the unauthorized sale. Aside from this resolved action, Little Medical School reports no other litigation required for disclosure.
Bankruptcy History
Little Medical School has no bankruptcy history to report for itself or any of its predecessors, parents, or executive officers.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Little Medical School franchise, franchisees must be in compliance with the terms of their Franchise Agreement and provide written notice 180 days before the initial term expires. They are required to sign Little Medical School's then-current Franchise Agreement and related agreements for the renewal term, including a general release in favor of the franchisor. A renewal fee must be paid, and the Little Medical School business location must be remodeled and upgraded to meet current brand standards and specifications. Franchisees must also secure the legal right to continue occupying their Little Medical School Center and meet all other renewal requirements outlined in the Franchise Agreement. Owners are also required to be in compliance with their agreements and personally guarantee the terms of the new renewal Franchise Agreement.
Training & Support Program
Franchisor Assistance
Before opening, Little Medical School grants the franchise, helps define the territory, and provides access to confidential operations manuals and a list of approved suppliers and distributors. Little Medical School identifies the franchisee's business on its website and offers an initial training program for the franchisee or managing owner and one manager. Franchisees also receive an opening inventory of system curriculum and materials, along with a marketing template package for grand opening promotion. After opening, Little Medical School may require and provide supplemental training and continuing education, and it trains replacement operating managers as needed. Little Medical School communicates updated operating standards, marketing standards, and approved vendors. It may also coordinate an annual system conference and administers a brand development fund for system-wide marketing. Franchisees have access to the core curriculum suite and its updates.
Initial Training Hours
37
Training Location
Corporate headquarters in St. Louis, Missouri
Ongoing Support
After opening, Little Medical School provides ongoing support through various means. This includes supplemental on-site training and continuing education programs, which may be required for franchisees and their operating managers, potentially incurring additional fees and travel expenses. Little Medical School communicates updates to operating standards, procedures, and system requirements through its manuals and other communications. It also provides lists of approved vendors and suppliers and offers an annual system conference, which franchisees are required to attend (with associated fees and travel costs). Little Medical School administers a brand development fund to support system-wide marketing and provides franchisees with continued access to the Core Curriculum Suite and any future updates or revised lesson plans.
Franchise Requirements
Ideal Candidate Profile
Little Medical School seeks franchisees who are personally responsible for the management and overall supervision of their business. While day-to-day operations can be delegated to an approved operating manager who has completed the franchisor's training and signed confidentiality agreements, the Managing Owner is recommended to participate in the day-to-day, hands-on supervision. All managing owners must successfully complete the initial training program and be approved by Little Medical School.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Little Medical School franchisees receive a Designated Territory, the size and scope of which vary based on local factors. Generally, a Designated Territory contains a population of approximately 60,000 children between the ages of five and 14. If a Little Medical School Business is located within a shopping mall or similar facility with a captive market, the Designated Territory may be limited to the physical boundaries of that mall or facility. Depending on demographics and geography, Little Medical School may place the business at the center of the Designated Territory or elsewhere within it. The Designated Territory can be identified by zip code, boundary streets, highways, county lines, designated market areas, or other recognizable demarcations.
Staffing Notes
The Little Medical School franchise requires that the franchisee, or its designated managing owner, be personally responsible for the management and overall supervision of the Little Medical School Business. Although direct day-to-day, on-site participation is recommended, a franchisee may hire an Operating Manager to supervise daily operations, provided this manager meets Little Medical School's minimum standards and criteria for managers, completes the initial training program, and signs a confidentiality agreement. Each Little Medical School Business must always have either a Managing Owner or an Operating Manager on-site. For franchisees operating multiple Little Medical School Businesses, each location needs an on-site Operating Manager. Little Medical School franchisees are responsible for all decisions regarding hiring, firing, training, supervising, disciplining, scheduling, paying, and withholding taxes for all employees. When hiring instructors, franchisees are subject to a background check service fee per person for each county and national background check. All employees and owners providing Approved Services and Products must complete Little Medical School's required training programs. Any staffing requirements from Little Medical School are for maintaining brand standards and System uniformity, not for dictating employment relationships.