Abrakadoodle Franchise Costs, Fees & FDD

Year Business Began: 2002

Franchising Since: 2004

Headquarters: Sterling, Virginia

Estimated Number of Units: 300

Franchise Description: The franchisor is Abrakadoodle Inc. Franchisees operate a business which provides arts education programs for 20-month-old to 12-year-old children, curriculum materials for instructing teachers in arts education, and art classes and special events for adults.
Training Overview: Franchisees must successfully complete quick start training activities before they attend business development training. Quick start training activities currently include reading designated information, viewing videos, DVDs or other media setting up the business, telephone meetings with a pre-training counselor and performing other tasks. Franchisees must complete business development training to the franchisor’s satisfaction either via on-line virtual sessions or at a location it designates in the Washington, D.C. area. This training lasts five business days. Each year, franchisees must attend a regional, national or international seminar the franchisor schedules and conducts. The focus of the seminar generally will be discussion and review of new business, marketing and educational ideas and concepts. Franchisees (or their managing principal) and/or any previously trained managers must attend any refresher or follow-up training that the franchisor designates.

Territory Granted: The franchisor grants franchisees the marketing rights for a protected territory generally defined by five-digit ZIP codes and/or county boundaries. All areas in the territory must be contiguous. A protected territory means that the franchisor will not sell another Abrakadoodle franchise that includes the zip codes and/or county boundaries in the territory. A standard local territory generally includes up to 20,000 qualifying households. If the local territory has more than 20,000 qualifying households but less than 50,000 qualifying households, the franchisor may charge a higher initial franchise fee. The franchisor does not generally grant a local territory above 49,999 qualifying households. A standard regional territory generally includes 50,000 to 60,000 qualifying households. If a regional territory has more than 60,000 qualifying households, the franchisor may charge a higher additional initial franchise fee. The franchisor does not generally grant a territory with more than 100,000 qualifying households. A “qualifying household” is defined in the Franchise Agreement as a household that has an annual income of $75,000 or more.

Obligations and Restrictions: Franchisees (or an equivalently trained manager) must personally manage the franchised business at all times. If franchisees are a legal entity, each principal must personally guarantee the obligations under the Franchise Agreement and also must agree to be personally bound by, and personally liable for breach of, every term of the Franchise Agreement. Franchisees must use, offer for sale and sell only services and products that the franchisor has approved or authorized. Franchisees may not use offer for sale or sell services or products that would detract from or be inconsistent with the system. Franchisees must be open for business each week for the minimum hours and days as stated in the operations manual. After their first 12 months of operation, franchisees must meet a minimum annual gross sales quota during each calendar year in order to retain the franchise.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the right to renew for successive 10-year renewal terms, if they meet the requirements for renewal.

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

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$25,400	$38,899
Prepaid 6 Months of Minimum Continuing Franchise Fee Class Management Program Fees and Technology Fees	$3,864	$3,864
Initial Materials Fee	$6,000	$6,000
Advertising Fee	$600	$600
Additional Materials and Office Supplies for 1st 6 Months (stationery business cards brochures, marketing materials on-line service telephone service with voice mail paper etc.)	$1,000	$3,850
1 Laptop Computer (per the franchisor’s current specifications for initial laptop computer)	$0	$2,200
1 Digital Camera	$0	$200
1 Color Printer	$0	$100
Travel Lodging and Meals for Business Development Training (per person)	$1,000	$2,000
Business Development Training Fees (per person)	$0	$3,500
Business Licenses, Permits, etc. (for 1st 6 months)	$50	$100
Insurance (for 1st 6 months)	$300	$750
Additional Funds (for 1st 6 months)	$1,000	$3,000
ESTIMATED TOTAL*	$39,214	$65,063

*The estimated initial investment range assumes no commercial office and is for a local territory. Please see FDD for estimates for a regional territory.

Other Fees

Type of Fee	Amount
Continuing Franchise Fee	8% of gross sales.
Advertising and Promotional Contribution	1% of gross sales.
Remedial or Follow-up Training	Currently $3,500 per person per day.
Business Development Training of Replacement Manager	Currently $3,500.
Technology Fee	Currently $49 per month.
Class Management Program Fee	Currently $95 per month.
Field Assistance	Per diem charges for the franchisor’s personnel (per diem charges currently are $500 daily for a senior management person and $220 daily for a support or training team member), plus out-of-pocket expenses.
Annual Conference	Proportionate share of the franchisor’s out-of-pocket costs.
Advanced Abrakadoodle Training	Varies under circumstances.
Equipment Supply or Supplier Testing or Inspection	Per diem charges for the franchisor’s personnel (per diem charges currently are $500 daily for a senior management person and $220 daily for a support or training team member), plus out-of-pocket expenses.
Transfer	An amount equal to 8% of the total sales price including all equipment, goodwill materials and all other elements of the sale This fee is subject to a minimum transfer fee that is equal to 30% of then-current initial franchise fee for comparable territory plus the franchisor’s initial materials fee and its out-of-pocket travel lodging and meal expenses.
Transfer Involving a Broker	Actual broker’s fee.
Renewal	5% of then-current initial franchise fee for a comparable territory.
Audit	Cost of inspection or audit.
Late Fees and Interest	$25 plus lesser of 1.5% per month or highest rate of interest allowed by law (in California the highest lawful rate of interest is 10% per annum).
Reimbursements and Penalty Fees	Will vary under circumstances.
Inspection	The franchisor’s actual costs, including travel expenses room board and compensation of its representative or designee.
Deficiencies	The franchisor’s actual costs.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.

The above information has been compiled from the FDD of Abrakadoodle. Year of FDD: 2025.
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