New Mom School logo

New Mom School Franchise

Audited Financials
Child & Youth ServicesEst. 2023Southlake, TX
www.newmomschool.com

Risk Score

Pending analysis

Investment Range

$67,335 - $105,982

Franchise Fee

$30,000

Total US Locations

1

Business Summary

New Mom School operates businesses that provide postnatal support and education services to mothers and their children. Franchisees offer classes and programs designed to support new mothers in their post-natal journey and educate them on caring for their children.

Corporate History

The New Mom School Franchising, LLC was formed on February 2, 2023, as a Texas limited liability company. It began offering franchises on June 20, 2023. Prior to this, an affiliate, The New Mom School, Inc., a California corporation formed in November 2017, owned and operated a New Mom School in Costa Mesa, California from 2017 until April 2024. The original New Mom School concept was operated by a previous entity from December 2012 to November 2017.

Financial Overview

Investment Range

$67,335 - $105,982

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$30,000

Royalty %

7%

Marketing %

1%

Equipment Costs (Low)

$10,000

Equipment Costs (High)

$18,250

Working Capital

$10,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

New Mom School Franchising, LLC's financial statements for the period ended December 31, 2023, received an unqualified opinion from its independent auditors, indicating the financial statements are presented fairly in all material respects. As a new company formed in February 2023, it reported a net loss from operations of $22,429 for its first partial year. The company recorded deferred revenue of $85,000 from initial franchise sales for which services had not yet been fully performed, which will be recognized as franchisees open their schools.

Financing Details

New Mom School Franchising, LLC does not offer any direct or indirect financing options to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations of the franchisee.

Performance Metrics

Total US Locations

1

Franchised Units

0

Corporate Units

1

Avg Square Footage

875

Franchising Since

2023

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their franchise agreement, New Mom School franchisees must provide advance written notice to the franchisor within a specific timeframe (between 90 and 180 days before the term ends). Franchisees must be in full compliance with all contractual obligations to the franchisor and third parties. They are also required to make any necessary renovations and changes to their School location to meet the franchisor's then-current brand standards, including a potential Remodel. Additionally, franchisees and their owners must sign the franchisor's current franchise agreement and related documents, including a personal guaranty, and execute a general release of claims against the franchisor. A renewal fee, equal to 50% of the then-current Initial Franchise Fee, is also required.

Training & Support Program

Franchisor Assistance

New Mom School provides comprehensive assistance to its franchisees. Before opening, the franchisor helps with site selection by reviewing potential locations and designating a territory. It provides specifications for school plans, equipment, computer systems, and supplies, along with lists of approved vendors. Franchisees receive suggested staffing levels, operational instructions from the Operations Manual, and a mandatory initial training program for the Principal Executive. The franchisor also offers to review pre-opening business plans and advises on market introduction plans. After opening, New Mom School offers ongoing support, including advice (by phone or electronic communication) on improving and developing the business and resolving operational problems. It provides recommended procedures for administration, bookkeeping, accounting, and inventory control. The franchisor also administers the Marketing Fund and maintains a brand website that includes each franchisee's business information.

Initial Training Hours

36

Training Location

Costa Mesa, California, Dallas, Texas, franchisee's School or virtual

Ongoing Support

After opening, New Mom School provides ongoing support to its franchisees. This includes advice and consulting by telephone or electronic communication to help with business development and operational problem-solving, if requested. The franchisor also provides recommended administrative, bookkeeping, accounting, and inventory control procedures. It manages the Marketing Fund for the brand and maintains a New Mom School website that includes each franchisee's business information and telephone number. Additional training is available upon request, potentially for a fee.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

supervisory

Territory Type

Non-Exclusive

Territory Size Requirements

New Mom School territories are generally defined by a population of approximately 50,000 to 75,000 people aged 25 to 40, within about a 10-mile radius around the School's location. The specific size can vary based on factors like population density, with a lesser population base potentially used in dense urban areas. Territories are delineated by a radius, geographical boundaries, zip codes, political boundaries, streets, geographical features, or trade area, depending on the local population's density and demographics.