Mobius Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,624,000 - $3,837,500
Total US Locations
1
Business Summary
Mobius provides after-school and summer programs for children from kindergarten through sixth grade. These programs offer experiential learning activities that balance STEAM (Science, Technology, Engineering, Arts, and Mathematics) activities with physical play, along with other authorized products and services. Mobius operates these programs from dedicated centers.
Corporate History
Mobius Franchising, LLC was established as an Arkansas limited liability company on October 31, 2023. The company's primary business is operating the Mobius Center franchise system and granting franchises. Mobius Franchising, LLC began offering franchises as of December 4, 2023. The franchisor does not operate any other lines of business and has not offered or sold franchises in other business types. Mobius Learning Academy, Inc., an Arkansas corporation established on July 12, 2019, is the parent company of Mobius Franchising, LLC and operates a Mobius Center in Bentonville, Arkansas, which is similar to the franchised business.
Financial Overview
Investment Range
$1,624,000 - $3,837,500
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$258,000
Equipment Costs (High)
$471,000
Working Capital
$175,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion, Going concern qualification
Financial Health Notes
Mobius Franchising, LLC has very limited financial resources, reporting only $100 in cash and shareholders' equity as of December 31, 2024 and October 31, 2023. The auditors have included a going concern qualification in their report, indicating that the future of Mobius Franchising, LLC is dependent upon its ability to obtain financing and achieve profitable operations. The company's owners have guaranteed its ongoing operation for the next twelve months.
Financing Details
Mobius Franchising, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, Mobius Franchising, LLC does not guarantee any notes or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
8,500
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mobius Franchising, LLC has no litigation to report, as no litigation is required to be disclosed in this item.
Bankruptcy History
Mobius Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Mobius franchisees must comply with the terms of their Franchise Agreement, provide 180 days' prior written notice of their renewal request, and sign the then-current form of Franchise Agreement and related agreements for the renewal term. They must also sign a general release in favor of Mobius Franchising, LLC, pay a renewal fee of $10,000, and remodel and upgrade their Center to meet current brand standards. Franchisees must secure and possess the legal right to continue occupying their Center location and fulfill all other renewal requirements outlined in the Franchise Agreement. Additionally, the owners and their spouses must comply with their agreements, including the Franchise Owner and Spouse Agreement and Guaranty, and personally guarantee the terms of the renewal Franchise Agreement, which may contain terms materially different from their current agreement. Any additional training designated by Mobius Franchising, LLC must also be completed to its satisfaction prior to the renewal term.
Training & Support Program
Franchisor Assistance
Mobius Franchising, LLC provides franchisees with a range of assistance. Before opening, the franchisor grants the right to operate a center, defines the designated territory upon site approval, and provides access to confidential operations manuals. Mobius Franchising, LLC reviews and approves proposed center locations and provides lists of approved suppliers, equipment, furniture, and fixtures. The franchisor also identifies the franchisee's center on its website and provides initial training for the managing owner and one manager. After opening, Mobius Franchising, LLC may require participation in supplemental on-site training (for a fee), and provides initial training for replacement operating managers (for a fee). The franchisor communicates updated operating standards, marketing standards, and approved vendors. It may also coordinate an annual system conference (with an attendance fee) and administer a Brand Development Fund. Mobius Franchising, LLC designates a required Business Management System and does not provide assistance with hiring and training employees, though it does set pricing suggestions.
Initial Training Hours
68
Training Location
Bentonville, Arkansas
Ongoing Support
After opening, Mobius Franchising, LLC may require the franchisee or their Operating Manager to participate in supplemental on-site training, for which a fee of $300 per trainer per day plus travel expenses will be charged. Training is also offered for replacement Operating Managers for a fee. The franchisor establishes and communicates updated operating standards, procedures, and system requirements for the business, including approved services, products, and supplies. Mobius Franchising, LLC provides names and addresses of approved vendors and suppliers. The franchisor may also coordinate an annual system conference, with an attendance fee not exceeding $1,500, which franchisees are required to attend. It also administers a Brand Development Fund for system-wide marketing, to which franchisees may be required to contribute up to 2% of gross sales.
Franchise Requirements
Ideal Candidate Profile
Mobius Franchising seeks franchisees or their designated Managing Owners who will be personally responsible for the management and overall supervision of their Mobius Center. Ideal candidates must complete the initial training program and be approved by the franchisor. While a hands-on approach to daily management is recommended, franchisees have the option to hire approved Operating Managers. Candidates are expected to demonstrate good moral character, sufficient business experience and aptitude, and adequate financial resources to successfully own and operate a Mobius Center. They should not have any ownership or operational involvement in a competitive business. Furthermore, all owners and their spouses are required to personally guarantee the franchisee's obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Mobius Franchising, LLC generally defines a Designated Territory to encompass approximately 5,000 students from kindergarten through sixth grade. If a center is in a captive market, the territory may be limited to the facility's physical boundaries. Mobius Franchising, LLC may place the center at the center of the territory or elsewhere within it, and may identify boundaries using zip codes, streets, highways, county lines, or designated market areas.
Staffing Notes
Mobius Franchising, LLC requires each center to be managed and supervised on-site by either a Managing Owner or an approved Operating Manager at all times. If a franchisee operates multiple centers, each center must have an on-site Operating Manager. The franchisor does not assist with hiring or training employees, but franchisees are responsible for the management and supervision of their staff. All employees must adhere to a proper dress code, including branded apparel, and ensure that all System Supplies and Approved Services and Products are prepared and maintained according to brand standards. Managers and all employees with access to confidential information are required to sign a confidentiality agreement.