Mad Science Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$132,331 - $191,959
Franchise Fee
$49,000
Min Cash Required
$13,800
Total US Locations
68
Business Summary
Mad Science Group offers children's education and entertainment services that specialize in interactive science activities and scientific demonstrations. These services include birthday parties, after-school programs, pre-school programs, workshops, camps, and special events for children aged 3 to 12. Mad Science Group also provides optional programs like a NASA-branded enrichment program, Schoolhouse Chess, and Brixology for franchisees to offer.
Corporate History
Mad Science Group Inc. was originally incorporated in Canada on August 16, 1993. It changed its name on April 2, 2014, and has been offering Mad Science franchises since March 1995, focusing solely on this business type. Mad Science Group operates under a license from its affiliate, Mad Science Licensing Inc., which owns the System and Marks. Another affiliate, Imagine Arts Academy, Inc., was formed in 2018 to franchise children's art enrichment businesses. Mad Science Group has also developed and offered a NASA branded after-school enrichment program since 2004, expanding it to include summer camps and birthday parties by 2006. The company also makes optional Schoolhouse Chess and Brixology programs available to its franchisees.
Financial Overview
Investment Range
$132,331 - $191,959
Franchise Fee (Low)
$49,000
Franchise Fee (High)
$49,000
Minimum Cash Required
$13,800
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$64,600
Equipment Costs (High)
$100,159
Working Capital
$17,300
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Mad Science Group's financial statements for the fiscal year ending March 31, 2024, received an unqualified opinion from their auditors, indicating that the statements fairly present the company's financial position. The company reported net earnings of $618,833 in 2024. Mad Science Group maintains healthy working capital, with current assets significantly exceeding current liabilities. The company is exposed to various financial risks including credit, currency, and interest rate risks, but has been in compliance with its credit agreement covenants. A significant contingent liability exists due to a legal action by a competitor claiming approximately €3.7 million, though management believes the claim has little merit and no provision for losses has been recorded.
Financing Details
Mad Science Group does not offer any direct or indirect financing to its franchisees. Mad Science Group also does not guarantee any franchisee's notes, leases, or obligations.
Performance Metrics
Total US Locations
68
Franchised Units
59
Corporate Units
9
Avg Square Footage
1,600
Franchising Since
1995
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Mad Science Group has had a few legal matters. In 2013, Mad Science Group entered into a Consent Order with the Maryland Securities Division concerning alleged violations of franchise laws, which involved addressing unregistered offers, documentation issues, and paying a penalty. More recently, Mad Science Group was involved in an arbitration case filed in July 2020 regarding an alleged improper termination of a development agreement, claiming significant damages. This arbitration was dismissed in April 2022. Mad Science Group is also currently involved in litigation filed in November 2020 in a Paris commercial court by a competitor, alleging disruption of its French franchise network and damage to its reputation, seeking approximately €3.26 million in damages. Hearings for this case took place in early 2023, and a final determination from the Court is pending.
Bankruptcy History
Mad Science Group has no bankruptcy information to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Mad Science franchise, franchisees must provide written notice of intent to renew between six and nine months before the current agreement ends. They must pay a renewal fee of $5,000 per territory and sign Mad Science Group's then-current franchise agreement, which may include different financial terms and a redefined territory. Franchisees must be in full compliance with their current agreement, have satisfied all financial obligations to Mad Science Group and third parties, and upgrade all hardware, software, equipment, and systems to meet current brand standards. They must also sign a general release of claims and allow Mad Science Group to conduct an on-site audit to confirm compliance, with any identified deficiencies needing to be resolved before renewal.
Training & Support Program
Franchisor Assistance
Before a Mad Science Group franchise opens, the company provides initial training for the franchisee or their managing owner and an approved manager, lasting approximately 4 to 10 days. They also provide specifications, approved supplier lists, and access to their operational manuals. During operation, Mad Science Group provides continuous access to these manuals and written updates. They coordinate and approve advertising materials, provide ongoing training and support, regulate quality standards across the network, negotiate group rates for purchases, and assist with research and development of new instructional programs. Mad Science Group also organizes annual franchisee conferences or regional meetings and uses a Technology Access Fee to develop tools for franchisees to manage their business more effectively.
Initial Training Hours
80
Training Location
Virtually, at the franchisee's location, or another location specified by Mad Science Group.
Ongoing Support
After opening, Mad Science Group provides ongoing support by making operating manuals and their updates electronically accessible. They coordinate and approve advertising materials and strategies, provide ongoing training and support, and regulate quality standards and products throughout the network. Mad Science Group also negotiates group rates for product purchases, assists with research and training for new instructional programs and techniques, and organizes annual franchisee conferences or regional meetings. Franchisees also gain access to technology-related tools through a monthly fee to help manage their franchise.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Mad Science Group territories vary in size and dimension, typically containing a population of 200,000 to 300,000 people. These territories are defined by factors such as zip code and county boundaries, highways, and physical landforms. The number of children in a territory is determined by elementary school populations from government statistics. Mad Science Group reserves the right to split a territory into two if its population exceeds 400,000.
Staffing Notes
Mad Science Group requires franchisees to maintain accurate staff records, including names, addresses, job functions, qualifications, and employment dates. All employees, especially instructors, must sign confidentiality agreements. Instructors for Mad Science Group must be trained according to the company's standards, and franchisees are required to conduct criminal record checks and/or fingerprinting for all instructors as mandated by applicable law. Mad Science Group's system standards may provide guidance on staffing levels, management personnel, and employee qualifications, dress, and appearance. Franchisees are solely responsible for hiring, training, compensation, management, and oversight of their employees.