Drama Kids Franchise Costs, Fees & FDD

Year Business Began: 1999

Franchising Since: 2000

Headquarters: Fort Myers, Florida

Estimated Number of Units: 180

Franchise Description: Drama Kids International, Inc. is the franchisor. 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. 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.
Training Overview: Franchisees and any manager or representative (or the operating principal, if the franchise is an entity) that the franchisor requires must complete the Act Up! Classroom Training initial classroom training program and DKI Quick Start Training to the franchisor’s satisfaction before they open their Drama Kids franchise. Currently, initial training consists of 40 hours of classroom instruction and 11 hours of on-the-job training. From time to time, the franchisor may require that franchisees, managers, 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 replacement manager, 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, franchisees must also attend the first three annual national conferences of all franchisees at a location the franchisor designates and pay a convention fee if the franchisor holds an annual meeting of all franchisees. After the first three years of operation, franchisees must attend the annual national conference during two out of every four years.

Territory Granted: Franchisees will receive an exclusive 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 a maximum population of 500,000 people. The territory is based on county boundaries, school boundaries, US zip codes, as well as other geographic and population properties within that area and other relevant demographic factors.

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 manager must meet the franchisor’s criteria and will be principally responsible for communicating with the franchisor about the Drama Kids business. The manager 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 its standards and specifications. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques. Franchisees must follow the franchisor’s online policy which currently allows them to establish an account and participate in social media sites.

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

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.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$42,500	$42,500
Initial Advertising	$2,000	$5,000
Business and Office Setup	$500	$2,000
Travel, Lodging and Meals for Initial Training	$500	$2,000
Insurance	$500	$1,500
Additional Funds (3 months)	$2,000	$4,000
ESTIMATED TOTAL	$48,000	$57,000

Other Fees

Type of Fee	Amount
Continuing Franchise Fee	The greater of 8% of gross sales or the minimum royalty (year one: $0; year two: $200 per month; year three and subsequent years: $500 per month).
National Advertising and Promotional Contribution	1% of gross sales.
Remedial or Additional Training	Currently $1,200 per person.
Field Assistance	The then-current fee (currently $500 per day), plus expenses.
Technology Fee	$50 per month.
Social Media Management Fee	The then-current fee (currently $261 per calendar quarter).
Annual Conference	The then-current fee.
Class Scheduling and Registration Software	Currently estimated to range between $45 and $95 per month, depending on student volume.
Late Fees	$10 per day, plus the lesser of 1.5% per month or the highest rate of interest allowed by law.
Audit	Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses.
Indemnification	All amounts (including attorney fees) incurred by the franchisor or otherwise required to be paid.
Inspection	The franchisor’s reasonable costs, travel, lodging and meal expenses.
Costs and Attorney’s Fees	Will vary under circumstances.
Renewal Fee	$5,000
Transfer Fee	$8,000

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