Risk Score
Pending analysis
Investment Range
$75,250 - $285,850
Franchise Fee
$36,100
Total US Locations
121
Business Summary
Snapology operates a business that provides curriculum-based courses, events, and hands-on learning experiences. These experiences utilize LEGO® brand bricks, K'Nex® brand toys, and other building toys, along with robotics, animation, coding, and engineering techniques. The business offers services and products under the SNAPOLOGY name and trademarks. Franchisees can operate either a mobile Snapology business, providing services at various third-party sites like schools, or a Snapology Classroom located within the premises of an Affiliated Brand's business.
Corporate History
Snapology, LLC was established on March 10, 2015, as a Pennsylvania limited liability company, and began offering SNAPOLOGY franchises in the same year. While the company previously offered license agreements, it no longer does so. In July 2021, Snapology became a wholly-owned subsidiary of Unleashed Brands, LLC, which serves as its parent company. Unleashed Brands, LLC also owns and franchises several other brands, including Urban Air Adventure Park, The Little Gym, Premier Martial Arts, Class 101, XP League, Sylvan Learning, and Water Wings.
Financial Overview
Investment Range
$75,250 - $285,850
Franchise Fee (Low)
$36,100
Franchise Fee (High)
$47,500
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$12,000
Equipment Costs (High)
$55,000
Working Capital
$11,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Snapology's parent company, UA Holdings, LLC, reported significant net losses in recent fiscal years, with a loss of $59.6 million in 2023 and $68.7 million in 2024. The company's cash flow from operating activities turned negative in 2024, using $7.17 million, compared to providing $16.6 million in 2023. Total liabilities for UA Holdings, LLC increased to $532.1 million in 2024, notably with long-term notes payable rising to $389.2 million, partly due to the $177.2 million acquisition of Sylvan Learning in February 2024. This acquisition also led to a substantial increase in goodwill and intangible assets, alongside a $2.27 million impairment loss on intangible assets recorded in 2024. Despite these financial trends, the independent auditor has issued an unqualified opinion on the consolidated financial statements, and no going concern qualification was noted.
Financing Details
Snapology does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other financial obligations that franchisees may incur.
Performance Metrics
Total US Locations
121
Franchised Units
120
Corporate Units
1
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Snapology has disclosed four litigation cases involving either itself or its affiliates. The first case, an administrative proceeding before the Maryland Securities Commissioner, concluded in January 2016 and alleged that Snapology Community Programs, L.P. and Snapology, LLC violated Maryland Franchise Law by offering franchises without registration. Snapology entered a consent order without admitting fault, agreeing to stop violations, register its offering, and offer rescission to a franchisee. The second case involved UATP Management, LLC (an affiliate) suing Leap of Faith Adventures, LLC in Texas in July 2018. UATP alleged that the defendant, a distributor, stopped paying rebates on attraction sales to UATP franchisees, citing breach of contract, tortious interference, fraud, and fraudulent inducement. The defendant counterclaimed for similar reasons. This case was settled confidentially and dismissed in September 2022, with UATP paying $5 million. The third case was filed in Texas in September 2023 by Unleashed Services, LLC (Snapology's parent company affiliate) against Tom Pabin, seeking declaratory judgment regarding an employment agreement. Pabin counterclaimed, alleging breach of contract and fraud. This lawsuit was resolved in October 2024 when Unleashed Brands, LLC bought back Mr. Pabin's ownership interests in Class 101 for $275,000, with all underlying claims dismissed. The fourth case involved Premier Franchising Group, LLC (an affiliate) and the California Commissioner of Financial Protection and Innovation, concluding in November 2021. The Commissioner found that Premier Martial Arts offered and sold franchises in California without registration and omitted this fact in subsequent applications. Premier Martial Arts agreed to stop violations, pay a $10,000 administrative penalty, and update its FDD disclosures.
Bankruptcy History
Snapology has no bankruptcy information to disclose in this Item.
Agreement Terms
Renewal Term
5 years
Renewal Conditions
To renew, Snapology franchisees must provide written notice 8 to 12 months before their current term expires. They must be in full compliance with all agreements, have no outstanding monetary obligations to Snapology, its affiliates, or suppliers, and maintain good standing without a pattern of non-compliance (no more than two failed quality assurance evaluations in any 12-month period or three in 24 months). For Snapology Classrooms, franchisees must renovate and upgrade their premises to meet current brand standards. All franchisees and owners must sign Snapology's then-current general release, satisfy current financial responsibility standards, and sign Snapology's then-current franchise agreement, which may include materially different terms and higher fees. They must also pay a renewal fee equal to 15% of the then-current initial franchise fee plus reimbursement for legal and professional expenses.
Training & Support Program
Franchisor Assistance
Snapology provides extensive assistance to its franchisees both before and during operation. Before opening, Snapology grants the right to operate within a protected area, provides design specifications for Classrooms, and offers optional on-site opening assistance for Classrooms (fees may apply). Snapology supplies its proprietary Curriculum and access to its confidential Operations Manual. It also conducts initial training for the franchisee or Designated Manager and one additional manager at no tuition cost (franchisees cover travel and living expenses). Snapology provides lists of approved suppliers, initial licenses for its business management system (Command Center), marketing standards, and a dedicated section on its website. During operation, Snapology continues to provide updates to the Curriculum, additional and refresher training (fees apply), and communicates System improvements. It reviews and approves marketing materials, administers customer loyalty and gift card programs, and offers ongoing consultation. Snapology also coordinates an annual conference for franchisees (mandatory attendance, fees apply). For development agreement holders, Snapology offers site selection guidelines, evaluates proposed sites, and facilitates the execution of franchise agreements according to a development schedule.
Initial Training Hours
30
Training Location
the Dallas-Fort Worth, TX Area
Ongoing Support
Snapology provides ongoing support to its franchisees after opening, including access to updated Curriculum and Supplemental Curriculum. It offers additional and refresher training programs for managers (with fees and expenses borne by the franchisee). Snapology continuously communicates updated operating procedures, System improvements, and modifications. It reviews and approves proposed marketing materials within 10 business days. The franchisor also establishes and administers customer loyalty programs, gift card programs, and a master insurance program. Snapology advises and consults with franchisees periodically on business operations and coordinates an annual conference (mandatory attendance, fees and expenses apply). Furthermore, Snapology conducts regular inspections and mystery shops of the franchised business, requiring immediate correction of any deficiencies and potentially additional training if performance standards are not met. Franchisees must maintain their premises and vehicles in first-class condition and participate in Snapology's national call center (with monthly fees and commissions) and contribute to the National Advertising Fund and local marketing expenditures.
Franchise Requirements
Ideal Candidate Profile
Snapology seeks franchisees with sufficient financial resources, business experience, and a keen interest in operating the business. Ideal candidates, or their Designated Managers, must meet educational, managerial, and business standards. They should possess good moral character, a strong business reputation, a solid credit rating, and demonstrate the aptitude and ability to operate the franchise. Candidates must not be involved in a Competitive Business. While the franchisor highly recommends that the Designated Manager own an equity interest, it is not a requirement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
hands-on
Territory Type
protected
Territory Size Requirements
Snapology defines its Protected Area using criteria such as zip codes, geographic boundaries, or a radius around the approved location. While there is no specified minimum size for a Protected Area, typically, available Protected Areas are designed to encompass a population of approximately 50,000 children aged infant to 14 years.
Staffing Notes
Snapology franchisees are responsible for hiring a sufficient number of qualified and competent personnel to meet demand and for their proper training in all operational aspects, including customer relations. All employees must wear standard uniforms. Franchisees retain sole responsibility for all labor and employment matters, such as hiring, promotions, compensation, discipline, and determining wages, benefits, work hours, and schedules. Snapology does not control these labor matters. Franchisees must designate a manager (who can be an owner) who will be personally responsible for the daily management and supervision, complete initial training, and meet Snapology's standards. All program instructors must be licensed teachers or instructors with at least 100 hours of lead classroom instruction and proper clearances.