Risk Score
Pending analysis
Investment Range
$90,700 - $195,300
Franchise Fee
$26,550
Min Cash Required
$20,000
Total US Locations
17
Business Summary
STEMTREE FRANCHISING, LLC offers in-person educational services that concentrate on science, technology, engineering, and mathematics (STEM) core curricula. STEMTREE's programs are designed to provide engaging and hands-on learning experiences for students from Kindergarten and up. The services include after-school programs, one-on-one tutoring, educational camps, home-school study programs, and even event-based programs like birthday parties.
Corporate History
STEMTREE FRANCHISING, LLC was formed in Virginia on September 25, 2015. The company began offering franchises for its education services business in October 2015. While STEMTREE FRANCHISING, LLC itself does not operate a franchised business, its affiliate, Stemtree Education Center LLC (SEC), has been operating one location of the same type of business since October 2014.
Financial Overview
Investment Range
$90,700 - $195,300
Franchise Fee (Low)
$26,550
Franchise Fee (High)
$44,500
Minimum Cash Required
$20,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$8,500
Equipment Costs (High)
$92,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
STEMTREE FRANCHISING, LLC's financial condition, as noted in the FDD's Special Risks section, raises concerns about its ability to provide services and support to franchisees. The company's financial statements show a negative Member's Equity (Deficit) of $(239,923) at the end of 2024 and $(266,379) at the end of 2023. While the auditor's formal opinion on the financial statements is unqualified, the auditor's responsibilities section indicates a conclusion was made regarding whether there are conditions or events that raise substantial doubt about STEMTREE FRANCHISING, LLC's ability to continue as a going concern for a reasonable period of time.
Financing Details
STEMTREE FRANCHISING, LLC does not offer any direct or indirect financing arrangements to its franchisees. The company also does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
17
Franchised Units
16
Corporate Units
1
Avg Square Footage
1,600
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
STEMTREE FRANCHISING, LLC has no litigation to report in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed.
Bankruptcy History
STEMTREE FRANCHISING, LLC has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. No bankruptcy information is required to be disclosed for the franchisor or its principal officers.
Agreement Terms
Initial Term
5 years
Renewal Conditions
To renew their franchise agreement, STEMTREE FRANCHISING, LLC franchisees must meet several conditions: they must be in good standing under all their agreements with the franchisor, be current on all monies owed, have made all required purchases, upgrades, and updates, and retain the right to possess their approved location. Franchisees also need to submit a timely request for renewal, meet the franchisor's then-current qualifications for new franchisees, and sign a general release of claims against the franchisor.
Training & Support Program
Franchisor Assistance
Before opening, STEMTREE FRANCHISING, LLC assists franchisees with advising on potential locations and specifying the initial equipment package. They provide an initial training program for one Designated Manager and up to one assistant, along with guidance for the grand opening. They also provide a list of specifications and approved suppliers for equipment, initial inventory, and supplies. After opening, STEMTREE FRANCHISING, LLC authorizes programs and services, offers ongoing training as needed, and provides modifications to the Operations Manual. The franchisor prescribes a standard accounting system format and is available to offer general advice and guidance by telephone, email, and newsletters. They also conduct periodic, announced or unannounced, visits to provide consultation and assistance on operations and management.
Initial Training Hours
30
Training Location
Vienna, VA headquarters
Ongoing Support
After opening, STEMTREE FRANCHISING, LLC offers ongoing support to its franchisees. This includes making ongoing training programs available, providing modifications to the Operations Manual, prescribing a standard accounting system, and being available for general advice and guidance via telephone, email, facsimile, and newsletters. The franchisor also conducts periodic, announced or unannounced, visits to the franchised business to offer consultation, assistance, and guidance on various aspects of operation and management.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
STEMTREE FRANCHISING, LLC defines its exclusive territories based on a minimum population of 2,500 to 3,000 children aged five to 19, along with at least four schools. The precise area of each territory is determined by the franchisor and approved based on radius, zip codes, or natural/political boundaries, depending on the specific market.
Staffing Notes
STEMTREE Franchising, LLC requires each franchised business to be under the direct supervision of a Designated Manager who provides personal on-premises oversight. This Designated Manager, along with up to one assistant, must successfully complete STEMTREE Franchising, LLC's initial training program. Franchisees are responsible for recruiting, hiring, training, scheduling, supervising, compensating, and terminating all their personnel. All staff must comply with STEMTREE Franchising, LLC's dress attire, uniform, personal appearance, and hygiene standards as outlined in the Operations Manual. Franchisees are also responsible for training their management and other employees.