Tippi Toes Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$68,600 - $166,500
Franchise Fee
$47,025
Total US Locations
77
Business Summary
Tippi Toes operates a business that markets, offers, and provides dance lessons, classes, and programs for children aged eighteen months to twelve years. Tippi Toes' courses aim to create an experience that teaches children to love dancing, build self-confidence, and connect positively with others. These classes are typically offered at various locations such as churches, schools, daycare centers, and community centers.
Corporate History
Tippi Toes was founded by Sarah Nuse in Oklahoma in 1999. The company was formally incorporated in Oklahoma on October 31, 2002. Tippi Toes began offering franchises in 2009 and currently operates three corporate locations.
Financial Overview
Investment Range
$68,600 - $166,500
Franchise Fee (Low)
$47,025
Franchise Fee (High)
$129,500
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$3,500
Working Capital
$16,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Tippi Toes' financial statements show a net loss of $47,310 for the year ended December 31, 2024, contributing to an accumulated deficit of $439,398. The company also has negative working capital, with current liabilities exceeding current assets by $438,898 as of December 31, 2024. A $400,000 line of credit was fully drawn by year-end 2024. Despite this, management believes that any unfavorable dispositions would not materially affect the financial position of Tippi Toes.
Financing Details
Tippi Toes does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations on behalf of franchisees.
Performance Metrics
Total US Locations
77
Franchised Units
74
Corporate Units
3
Avg Square Footage
100
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tippi Toes has no litigation history to report.
Bankruptcy History
Tippi Toes has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Tippi Toes franchisees must be in full compliance with the current Franchise Agreement, having committed no more than three events of default during the term. They must provide written notice to Tippi Toes at least six months before the end of the term and execute a new franchise agreement. A successor agreement fee of $10,000 is required. Franchisees must also retain the right to occupy their current premises or secure approval for a new location, and they may be required to remodel their business to meet current brand standards. Additionally, they must sign a general release and comply with all then-current qualifications and training requirements, including any additional training.
Training & Support Program
Franchisor Assistance
Tippi Toes assists franchisees by designating a protected territory and providing access to its operations manuals, including a training manual. While there are no specific site requirements, most franchisees establish a home-based office. Tippi Toes offers initial training in Scottsdale, Arizona, or an alternate location, covering marketing, advertising, sales, operations, and business plan development. After opening, franchisees receive ongoing support through monthly phone training conferences for owners and managers, access to the "Backstage" online community for questions and information, and advice on selling prices. Tippi Toes also provides updated information on training, products, services, announcements, and meetings via various communication channels.
Initial Training Hours
18
Training Location
Scottsdale, Arizona
Ongoing Support
After opening, Tippi Toes provides ongoing support through monthly phone training conferences for all franchise owners and managers. Franchisees also have access to the "Backstage" online community for current information and to ask questions. Tippi Toes sends updated information on training, products, services, announcements, and meetings via mail, email, or conference call. Additionally, upon request, Tippi Toes offers additional on-site training for franchisee personnel for a fee.
Franchise Requirements
Ideal Candidate Profile
Tippi Toes seeks individuals who will directly supervise the operation of their franchise business. If the franchisee chooses to employ a manager for this role, that individual must serve as the Operating Principal and meet the standards and training requirements set forth by Tippi Toes for this position.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Exclusive
Staff Count
2
Territory Size Requirements
Tippi Toes territories are defined as a protected area that includes a population of up to 300,000 people. The boundaries are typically defined by zip codes or a mapped territory. Franchisees can purchase additional population in 50,000-person increments, with an overage fee of $0.165 per person for populations exceeding 300,000.
Staffing Notes
Tippi Toes franchisees must staff their business with one to two teachers, who are estimated to work between 5-10 hours per week. The franchisee must directly supervise the business operations or appoint an Operating Principal. This Operating Principal, who can be a hired manager, must meet Tippi Toes' standards, complete all required training, and supervise and oversee all employees and their training. Monthly virtual learning opportunities are available for franchisees, managers, and teachers.