Risk Score
Pending analysis
Investment Range
$115,000 - $216,000
Franchise Fee
$40,000
Total US Locations
97
Business Summary
Tutu School businesses offer dance and movement instruction to children, primarily focusing on ballet for ages 6 months to eight years old. They operate out of commercial spaces like strip malls or urban storefronts. The core emphasis of Tutu School classes is on early ballet and movement concepts, encouraging children to have fun while engaging their creativity and imagination, rather than providing formal ballet training for older children or adults. Tutu School locations also sell a limited selection of ballet-related clothing and merchandise, including their own proprietary line.
Corporate History
Tutu School Franchises, LLC was originally formed in California on August 1, 2011, and later converted to an Illinois entity in 2018. The company began offering Tutu School franchises for the first time in 2012. An affiliate, Tutu School LLC, which owns and operates four Tutu School locations, began operating its first School in San Francisco in February 2008.
Financial Overview
Investment Range
$115,000 - $216,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$48,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$34,000
Equipment Costs (High)
$74,000
Working Capital
$16,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Tutu School Franchises' financial condition, as detailed in its financial statements in Item 21, raises questions about the company's ability to provide adequate services and support to its franchisees. This concern is explicitly highlighted in the special risks section of the FDD.
Financing Details
Tutu School Franchises does not offer any direct or indirect financing to its franchisees. Additionally, the company does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
97
Franchised Units
93
Corporate Units
4
Avg Square Footage
900
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tutu School Franchises has no litigation to report in Item 3 of its FDD. The company states that no litigation is required to be disclosed in this item.
Bankruptcy History
Tutu School Franchises has no bankruptcy history to report in Item 4 of its FDD. The company states that no bankruptcies are required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Tutu School franchisees must provide written notice of their intent to renew 6 to 12 months before the current term expires. They must be in good standing, not in default of any material agreement, and must pay a renewal fee equal to 25% of the then-current initial franchise fee for new franchisees. Franchisees must also sign a general release of claims against Tutu School Franchises, provide proof of a lease for the premises for the renewal term, make any required improvements to bring their location up to current brand standards, sign the then-current form of franchise agreement (which may have materially different terms), and certify they continue to meet the franchisor's qualification criteria.
Training & Support Program
Franchisor Assistance
Tutu School Franchises assists franchisees with identifying a designated area and reviewing proposed business sites. They provide a design packet for the School's build-out and information on conducting criminal background checks for employees. The franchisor conducts initial training for the franchisee and one instructor, covering operations, curriculum, and the Tutu School System. They also assist with ordering signs, fixtures, and opening inventory materials, and provide design assistance for local advertising. For ongoing support, Tutu School Franchises periodically develops and provides advertising materials, offers guidance on operations (through meetings, webinars, video calls, and written communications), maintains the company website with a site-specific page for each School, and holds licenses for specified classical music used in classes. Franchisees are generally required to attend an annual conference, for which a fee may be charged.
Initial Training Hours
32
Training Location
Chicago, IL, with remote components
Ongoing Support
Tutu School Franchises provides ongoing assistance by periodically developing and supplying advertising materials and offering suggestions for best practices. They guide and assist with School operations through periodic in-person meetings, webinars, video calls, telephone, or written communications. The franchisor maintains the company website, which includes a site-specific page for each School, and holds licenses for specified classical music used in classes. Franchisees are also generally required to attend an annual conference, for which a fee may be charged.
Franchise Requirements
Ideal Candidate Profile
Tutu School Franchises looks for franchisees who are committed to direct personal involvement in the business, managing staff and making operational decisions. While franchisees don't necessarily need to be experienced dancers themselves, they must hire experienced dancers to teach classes. All franchisees and instructors must pass criminal background checks. If the franchisee is a business entity, at least one owner must attend and pass training and serve as the manager. Tutu School Franchises also offers a discounted initial fee to eligible long-time employees, suggesting a preference for individuals familiar with the system.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Tutu School Franchises defines territory sizes with a minimum Preliminary Designated Area and Designated Area consisting of one city block in urban areas. In suburban and rural areas, the territory may include several miles from the anticipated location, representing as much as a 15-minute drive time. The actual size and boundaries of the designated area depend on factors such as population base, population density, growth trends, density of residential and business entities, and major topographical features like rivers, mountains, or major freeways.
Staffing Notes
Tutu School Franchises requires that all programs be taught by experienced dancers. If the franchisee is not an experienced dancer, they must hire at least one qualified dance instructor. All employees and independent contractors, including owners serving as managers, must undergo and successfully pass criminal background checks through an approved supplier prior to employment. Franchisees are solely responsible for hiring, managing, and making operational decisions for their staff. They must ensure qualified and trained instructors are always present and leading classes, and promptly address any misconduct involving harm to minors or criminal charges of sexual misconduct.