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Drama Kids Franchise Cost & Fees

Date of Incorporation: 1999
Franchising Since: 2000
Headquarters: Leesburg, Virginia

Business Description: Drama Kids International, Inc. is the franchisor. Drama Kids businesses provide drama-based programs for children and teenagers ages 4 to 17 through a progressive curriculum that enables students to develop leadership, teamwork, and social interaction skills, public speaking skills, acting skills, confidence, self-esteem, and a positive approach to life.

Franchise Offer: The franchisor offers franchises for the use of its “DRAMA KIDS” trademarks, trade names, service marks, and logos for the operation of Drama Kids Businesses.

Financial Assistance: The franchisor does not offer direct or indirect financing to franchisees. The franchisor does not guarantee a franchisee’s note, lease, or other obligation.

Training and Assistance: Franchisees and any designated director or representative that the franchisor requires must complete the “DKI Act Up! Classroom Training” initial classroom training program to the franchisor’s satisfaction before they open their Drama Kids Franchise. Franchisees, and if applicable, their designated director must complete the training program to the franchisor’s reasonable satisfaction, as determined by the specific program instructors, before franchisees are able to open their Drama Kids Business. The franchisor’s “DKI Quick Start Training” is a recommended but optional training program designed for new owners who sign their franchise agreement at least 45 days before DKI Act Up! Classroom Training and would like to begin immediate marketing, sales, and other business development activities. From time to time, the franchisor may require that franchisees, designated directors, and other employees attend system-wide refresher or additional training courses. Some of these courses may be optional while others may be required. If franchisees appoint a new designated director, that person must attend and successfully complete the initial training program before assuming responsibility for the management of the Drama Kids Business. In addition to participating in ongoing training, during each of their first 3 years of operation, franchisees must also attend the first 3 annual national conferences of all franchisees at a location the franchisor’s designate and pay a convention fee if the franchisor holds an annual meeting of all franchisees.

Territory: Franchisees will receive a protected territory for their Drama Kids Business, which means that during the term of the Franchise Agreement, the franchisor will not establish or franchise others to establish another Drama Kids Business within their designated Territory. A standard Territory generally includes up to 20,000 Qualifying Households (households with incomes of $75,000 and above). If a standard Territory has more than 20,000 Qualifying Households, the franchisor may charge an Expanded Territory Fee of $0.45 per qualifying household for a Territory that is larger than the standard Territory. The franchisor generally does not allow a single territory to exceed 50,000 Qualifying Households.

Term of Agreement and Renewal: The length of the initial franchise term is 7 years. If franchisees are in good standing and they meet other requirements, they may add one successor term of 7 years.

Obligations and Restrictions: The franchisor requires that franchisees either directly operate their Drama Kids Business or designate a manager who has been approved by the franchisor. The Designated Director must meet the franchisor’s criteria and will be principally responsible for communicating with the franchisor about the Drama Kids Business. The Designated Director must have the authority and responsibility for the day-to-day operations of the Drama Kids Business. Franchisees must sell or offer for sale only those services and products authorized by the franchisor, and which meet our standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques. Franchisees may not sell products or services, or advertise products or services, within another franchisee’s Territory. Franchisees must follow the franchisor’s online policy which currently allows them to establish an account and participate in social media sites.

Estimated Number of Units: 215

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $24,700 $24,700
Expanded Territory Fee $0 $13,500
Initial Advertising $2,000 $3,500
Business and Office Set-up $100 $2,000
Travel, Lodging and Meals for Initial Training $500 $1,500
Insurance $300 $1,000
Additional Funds (3 months) $1,000 $2,000
ESTIMATED TOTAL $28,600 $48,200
Other Fees
Type of Fee Amount
Continuing Franchise Fee The greater of 8% of Gross Sales or the Minimum Royalty.
National Advertising And Promotional Contribution 1% of Gross Sales.
Additional Training Currently $3,500
Field Assistance $500 per day, plus expenses.
Technology Fee Currently not charged, but the franchisor reserves the right to charge up to $35 per month after providing franchisees with written notice 90 days in advance.
Annual Conference The then current fee (currently estimated to be $250 per person).
Late Fees $25 per day, plus the lesser of 1.5% per month or the highest rate of interest allowed by law.
Additional Territory Fee The then current fee.
Audit Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses.
Indemnification All amounts (including attorney fees) incurred by us or otherwise required to be paid.
Inspection The franchisor reasonable costs, travel, lodging and meal expenses.
Costs and Attorney’s Fees Will vary under the circumstances.
Renewal Fee $3,500
Transfer Fee $6,000

The above information has been taken from the FDD of Drama Kids. Year of FDD: 2016

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