Risk Score
Pending analysis
Investment Range
$673,507 - $1,074,293
Franchise Fee
$100,000
Business Summary
MindChamps International PreSchool offers franchises for schools that provide premium learning and educational activities, including childcare services, to children aged six weeks to five years old. MindChamps International PreSchool schools operate under a distinctive business format and method, incorporating a proprietary curriculum based on the '3 Minds' model (Champion Mind, Creative Mind, Learning Mind) and the S.M.I.L.E.S.™ methodology for integrative learning.
Corporate History
MindChamps International PreSchool Franchising Inc. was organized in Delaware on July 21, 2022, and began offering franchises in the United States in 2022. It is 50% owned by MindChamps International PreSchool Inc. (MIPI), which is a wholly-owned subsidiary of MindChamps PreSchool Limited (MPL), a public company incorporated in Singapore in July 2008. MPL began offering franchises for MindChamps® preschools in Singapore in 2008 and expanded internationally. MindChamps International PreSchool Franchising Inc. itself does not operate any preschool facilities in the United States.
Financial Overview
Investment Range
$673,507 - $1,074,293
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$100,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$288,000
Equipment Costs (High)
$435,000
Working Capital
$112,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
MindChamps International PreSchool Franchising Inc. has sustained recurring net losses and negative cash flows from operations since its inception in July 2022, with a net loss of $659,475 and negative cash flows of $140,790 for the year ended December 31, 2023. The company's operations have been funded through capital contributions. While management has taken steps to improve cash flow and believes its parent company and licensor will provide necessary financial assistance, the recurring losses indicate that MindChamps International PreSchool Franchising Inc. has not yet achieved financial stability on its own.
Financing Details
MindChamps International PreSchool Franchising Inc. does not offer any direct or indirect financing arrangements to its franchisees. This means that franchisees will need to secure their own financing through third parties, and MindChamps International PreSchool Franchising Inc. will not guarantee any loans or other financial obligations.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
9,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
MindChamps International PreSchool Franchising Inc. has no litigation to report.
Bankruptcy History
MindChamps International PreSchool Franchising Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their agreement, MindChamps International PreSchool franchisees must notify the franchisor in writing at least 18 months before the initial term expires and sign a new franchise agreement (which may have different terms) at least 9 months prior to expiration. They must have fully complied with all obligations under the current agreement, paid all outstanding fees, agree to comply with the franchisor's then-current system and pay relevant franchise fees, complete any reasonable upgrades or remodeling to the school or equipment to meet current standards, and pay a $50,000 renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, MindChamps International PreSchool provides initial training for the Key Person and one Owner in the MindChamps System, assists with site selection (either by sourcing up to two suitable sites or evaluating franchisee-proposed sites), offers advertising assistance and sales advice through a Marketing Starter Pack, guides on renovation and school setup according to the ChampionGold Standard, and provides access to a confidential operating manual. After opening, ongoing support includes reasonable guidance on school operations, procurement of education resources and furnishings, advice on management, business development, and marketing. MindChamps International PreSchool also makes system improvements available, updates course materials and pedagogical methods, reviews franchisee performance, and provides guidance on staffing levels.
Initial Training Hours
158
Training Location
Online
Ongoing Support
After opening, MindChamps International PreSchool franchisees receive continuous support including reasonable guidance on school operations, assistance with sourcing suppliers for education resources and furnishings, and advice on management, business development, and marketing. The franchisor also provides improvements to its system, updates course materials, programs, and pedagogical methods, and reviews franchisee performance. Required ongoing training events for educators are held online quarterly (Community of Practice), and biannually (Global Teachers Development and Training Day, School-based Teachers Development and Training Day). Franchisees and their designated employees are also required to attend biannual business leaders conferences and other designated conferences or seminars.
Franchise Requirements
Ideal Candidate Profile
MindChamps International PreSchool is looking for corporate entities to sign the franchise agreement. The ideal candidate entity must have an Owner or Key Person approved by MindChamps International PreSchool who resides in the same market as the school and dedicates their full-time energy and effort to the management and supervision of the school, routinely being on-premises. This Key Person or Owner must have authority over all business decisions. Additionally, all Owners of the entity must sign personal guarantees for the franchisee's obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
20
Territory Size Requirements
MindChamps International PreSchool franchisees operate within a Designated Area. There is no minimum size specified, as the franchisor or its affiliates will analyze various factors to establish the territory size. These factors include population demographics, population growth forecasts, estimated number of households, competition from other schools, marital status, age of children, workplace population, family data, household ownership, topographical features, density of residential and business entities, and traffic flows. The franchisor defines the boundaries for each Designated Area based on these criteria.
Staffing Notes
MindChamps International PreSchool requires franchisees to hire, train, and supervise qualified and trained personnel sufficient to meet their obligations, maintaining a competent, conscientious, and well-trained staff that preserves good customer relations. All employees must be paid through official means, and all employment agreements must comply with applicable governmental and labor laws. Franchisees are responsible for deducting and remitting employment-related taxes and maintaining all required workplace safety and workers' compensation insurance. MindChamps International PreSchool will provide reasonable guidance on staffing level ranges. All teachers must undergo and complete mandatory training programs and attain accreditation in pedagogical methods; teachers cannot deliver programs until they have received accreditation or prior written approval. If the school fails an annual audit, staff may be required to undergo further training at the franchisee's expense. Staff must maintain high standards of service, conduct, hygiene, courtesy, and acceptable attire, including wearing franchisor-specified uniforms.