Tumbles logo

Tumbles Franchise

Audited Financials
Child & Youth ServicesEst. 1993Houston, TX
www.tumbles.net

Risk Score

Pending analysis

Investment Range

$226,500 - $728,000

Franchise Fee

$30,000

Total US Locations

6

Business Summary

Tumbles LLC offers franchises for children's fitness gyms and STEAM (Science, Technology, Engineering, Art, and Math) centers, catering to children aged 4 months to 10 years. Tumbles facilities provide structured programs featuring basic gymnastics, sports preparation skills, STEAM classes, tumbling, children's games, and activities. These programs are specifically designed to enhance children's physical and motor skills, spatial awareness, coordination, balance, agility, and flexibility. Many offerings allow for parent-child participation, and the STEAM curriculum emphasizes hands-on, full-body kinesthetic learning. Optionally, some Tumbles facilities can include a Tumble Zone indoor playground, which is an enclosed soft play area and obstacle course for children over four.

Corporate History

Tumbles LLC was organized in Delaware on October 15, 2014, and began offering franchises in June 2016. The Tumbles brand, however, has a history dating back to 1993 when J.W. Tumbles Licensing Corporation, a California entity, first offered and sold Tumbles franchises. The brand was subsequently owned and operated by JWT Kids, Inc. and JWT IP, Inc. from 2007 to 2008, followed by Kidville JWT, LLC from 2008 to 2014. Cambridge Franchise Enterprises Private Ltd. then held the Tumbles brand from October 2014 to December 2015, at which point Tumbles LLC purchased most of its assets and continued to grow the franchise system.

Financial Overview

Investment Range

$226,500 - $728,000

Franchise Fee (Low)

$30,000

Franchise Fee (High)

$54,000

Royalty %

7%

Marketing %

2%

Equipment Costs (Low)

$113,500

Equipment Costs (High)

$380,000

Working Capital

$42,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Going concern qualification

Financial Health Notes

Tumbles LLC's financial statements for the fiscal year ending December 31, 2023, show recurring losses from operations and a net capital deficiency, with an accumulated deficit of over $3.3 million. The auditors have expressed substantial doubt about Tumbles LLC's ability to continue as a going concern, a risk also highlighted in the FDD as potentially affecting the franchisor's ability to provide services and support to franchisees. Management's plans to address these issues include raising additional capital and increasing revenue, primarily through franchise sales.

Financing Details

Tumbles LLC does not offer any direct or indirect financing to its franchisees. Additionally, Tumbles LLC does not guarantee any franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding through external sources.

Performance Metrics

Total US Locations

6

Franchised Units

6

Corporate Units

0

Avg Square Footage

2,950

Franchising Since

2016

Agreement Terms

Initial Term

5 years

Renewal Term

5 years

Renewal Conditions

To renew their Tumbles LLC franchise agreement, franchisees must provide notice between 90 and 180 days before the current term expires. They must be in full compliance with all contractual obligations to Tumbles LLC and third parties throughout the term, have not defaulted more than twice, and have upheld the franchisor's ethics and values. Franchisees are also required to renovate their facility to meet Tumbles LLC's then-current brand standards, sign the most current form of Franchise Agreement and associated documents (including a personal guaranty), and execute a general release of claims. A renewal fee of $5,000 is also due.

Training & Support Program

Franchisor Assistance

Tumbles LLC provides pre-opening assistance that includes reviewing and advising on potential locations, offering design services for equipment layout, and consulting on equipment/inventory specifications with a list of approved suppliers. They provide standard initial training to the Principal Executive and Director at a designated franchised facility. Tumbles LLC may also offer advice on grand opening marketing plans and provides a representative for at least two days of on-site support during the grand opening. For ongoing support after opening, Tumbles LLC may provide recommended prices and administrative, bookkeeping, accounting, and inventory control procedures upon request. Tumbles LLC manages the Marketing Fund and, for an additional fee, can manage franchisees' digital advertising and social media platforms, including ad planning and marketing strategy calls. Franchisees are also required to attend regional and national meetings where Tumbles LLC shares industry information, new programs, and conducts additional training.

Initial Training Hours

57

Training Location

Online, plus in-person training at a franchised location in Encinitas, CA, Johns Creek, GA, or a designated regional facility, with some on-site training at the franchisee's own location.

Ongoing Support

Tumbles LLC offers post-opening assistance by providing advice and consulting (via phone or electronic communication, with potential fees for in-person support) to help franchisees improve their business and resolve operational problems. They may provide recommended prices for products and services, as well as recommended administrative, bookkeeping, accounting, and inventory control procedures. Tumbles LLC also administers the Marketing Fund and, for an additional fee, can manage the franchisee's digital advertising and social media platforms, including ad planning and regular marketing strategy calls. Franchisees are required to attend regional and national meetings where Tumbles LLC provides industry updates, introduces new programs, and conducts further training.

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

Protected

Territory Size Requirements

Tumbles LLC territories are generally defined as a collection of ZIP codes around the location, though other boundaries like a radius, county lines, or geographical features may be used. Each territory must have a minimum population of 6,000 children and an average household income of $55,000 or greater.

Staffing Notes

Tumbles LLC requires the business to be under the on-site supervision of either the Principal Executive or a Director who has successfully completed the franchisor's training program. Franchisees are solely responsible for all hiring, scheduling, compensation, and termination decisions for their personnel. Tumbles LLC may establish minimum qualifications for different employee categories and expects franchisees to maintain sufficient staffing levels to handle their business volume, in compliance with System Standards. The Brand Standards Manual provides guidance on various roles, including job descriptions for Head Instructors, Assistant Instructors, Directors, and Assistant Directors, as well as an employee hierarchy.