Drama Kids
Drama Kids International offers drama-based programs for children ages 4 to 17, focusing on skill development and confidence building through acting and public speaking. Known for its comprehensive curriculum, the franchise operates in the educational and entertainment sectors.
Drama Kids franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Drama Kids franchised business is between $43,500 and $54,500. This includes $36,000 that must be paid to the franchisor or its affiliate(s). [p.2]
What is the initial franchise fee?
The initial franchise fee is $36,000 and covers pre-opening assistance including administrative costs, overhead, counsel fees, accounting, franchise recruitment expenses, and other related expenses [p.11]. This fee is non-refundable once paid [p.53].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 8% of Gross Sales or a Minimum Royalty, whichever is greater [p.53]. The Minimum Royalty starts at $200 per month after the second anniversary of signing the agreement and increases to $500 per month after the third anniversary [p.53]. Additionally, you are required to contribute to the National Advertising and Promotional Fund, though the specific amount is not detailed in these excerpts; the fund can be used for various promotional activities without guaranteeing direct benefits to individual franchisees [p.23].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the renewal terms beyond stating that if you qualify to renew, a $5,000 renewal fee must be paid upon execution of the renewal agreement [p.54].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your ownership of the franchise, but it requires good cause for the franchisor to refuse such a transfer [p.6]. The franchisor may have a right of first refusal to purchase the franchise instead [p.6]. This isn't specified in the excerpts regarding the exact process or requirements for transferring the franchise.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts focus on termination rights of the franchisee rather than those of the franchisor.
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you need to have sufficient financial resources and capital to operate the Drama Kids Business, be financially responsible with a good credit rating, and be deemed likely to comply with the terms of the agreement. However, specific net worth or liquid capital requirements are not detailed in these excerpts. [p.72]
Do I get an exclusive or protected territory?
Yes, you receive an exclusive territory for your Drama Kids Business. During the term of the Franchise Agreement, the company will not establish or franchise another Drama Kids Business within your designated Territory [p.28]. However, this exclusivity is subject to you being in full compliance with the agreement and any other related agreements [p.49].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs including Act Up! Classroom Training, which focuses on proprietary curriculum materials and classroom management, and DKI Quick Start Training, designed for marketing, sales, and business development. Additionally, ongoing operational support is provided through coordination by Faith Gavelek and Dulcie Mishkin, who assist with business launch training, curriculum instruction, and operational support [p.27].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
Drama Kids International, Inc. does not make any financial performance representations and does not authorize its employees or representatives to make such representations either orally or in writing [p.37]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet [p.37].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those services and products authorized by the franchisor, which must meet their standards and specifications. You must purchase or lease goods, services, supplies, equipment, inventory, computer hardware and software from the franchisor, their designees, approved suppliers, or them and their affiliates, as specified in the FDD [p.18].