About Code Ninjas Franchise
Code Ninjas is a children's coding education franchise under parent company Code Ninjas Holdings LLC, offering franchise opportunities since 2016.
Each center teaches kids ages 5 to 14 how to code by building video games in a fun, engaging environment.
Students progress through a structured belt system, similar to martial arts, earning new ranks as they master increasingly complex programming concepts.
Code Ninjas Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 7% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5.25% of Net Sales | National brand fund |
| Total Investment Range | $181,167 – $451,950 | Includes build-out, inventory, working capital |
The investment range of $181K–$452K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Net Sales) and marketing fee (5.25% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $35,000 | $35,000 |
| Lease (Note 2) | $20,267 | $40,000 |
| Utility Deposit (Note 3) | $300 | $500 |
| Architect Fees (Note 4) | $2,500 | $10,000 |
| Construction Costs (Note 4) | $54,500 | $234,000 |
| Expenses for Initial Training (Note 5) | $1,500 | $5,000 |
| Business Licenses and Permits (Note 6) | $200 | $1,000 |
| Business Insurance (Note 7) | $1,000 | $2,500 |
| Initial Inventory (Note 8) | $5,000 | $12,000 |
| Computer Hardware & Software (Note 9) | $3,100 | $5,050 |
| Furniture, Fixtures, & Eqpt (Note 10) | $29,000 | $55,000 |
| Signage (Note 10) | $5,800 | $16,300 |
| Grand Opening Marketing Program (Note 12) | $7,500 | $7,500 |
| Professional Fees (Note 13) | $500 | $3,000 |
| Additional Funds (3 months) (Note 14) | $15,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $2,500 |
| Technology Fee | Currently $250 to $350 a month |
| Audit Fee | Cost of inspection or audit plus our reasonable related costs and expenses |
| Supplier/Vendor or Supplies Approval | Cost of inspection of supplier’s facilities and/or test of supplier’s samples, plus our reasonable related costs and expenses |
| Product and Equipment Purchases | Will vary |
| Additional and Repeat Initial Training | Currently $500 per individual to be trained |
| Ongoing/Remedial Training | Currently $500 per day per trainer, plus our reasonable related costs and expenses |
| Convention Fee | Currently $550 per attendee |
| Interest | 1.5% per month on missed, overdue, or insufficient payments |
| Securities Offering Fee | $5,000 (or our reasonable costs and expenses, if more) |
| Relocation Fee | $5,000 plus our reasonable costs and expenses |
| Cost of Enforcement or Defense | Will vary under circumstances |
| Insurance | Actual costs (if franchisor obtains for franchisee) |
| Indemnification | All costs and expenses, including attorneys' fees |
| Additional Tech Vendor Fees | Variable |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 21-day period |
| Classroom Training | 30 |
| On-the-Job Training | 14 |
| Training Location | Online, corporate HQ in Houston metro area, or another Code Ninjas center |
| Additional Training | Franchisees and key personnel may be required to attend refresher courses, seminars, and other training programs periodically. Web-based training for employees may also be required. Additional individuals beyond the required three can attend for a discounted fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Description | For a single unit, a "Protected Area" is designated in the Franchise Agreement where the franchisor will not establish or license another Code Ninjas Learning Center. However, the franchisor retains rights to operate other brands, acquire businesses, and sell services/products through alternative channels (e.g., e-commerce) anywhere, as long as it's not from a Code Ninjas Learning Center. For a Development Agreement, a "Development Area" is awarded, varying in size, where the developer has the right to establish multiple units. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Three additional five-year terms |
| Renewal Fee | $2,500 |
| Renewal Conditions | Timely written notice (9-12 months before term end), remodel/refurbish to current standards, compliance with all agreement terms and financial obligations, execution of then-current franchise agreement (which may have materially different terms, including higher fees), payment of renewal fee, execution of general release, compliance with current personnel/training requirements, and demonstrated right to remain in accepted location. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor's prior written consent required. Conditions include: transferor executes general release; transferee designated as Principal and bound by agreement terms; new Principals meet educational, managerial, business, moral character, reputation, and financial standards; transferee executes current form of franchise agreement (may have different terms); Major Remodeling and new equipment purchase if requested; all monetary obligations to franchisor/affiliates/vendors paid; transferor remains liable for pre-transfer obligations and surviving covenants; transferee's key personnel complete training; payment of transfer fee; transferor remains bound by non-compete covenants. |
| Termination for Cause | Automatic termination without notice for insolvency, general assignment for creditors, receiver appointment, composition with creditors, unsatisfied material final judgment (30+ days), dissolution, levy execution, or foreclosure suit (30+ days). Immediate termination with notice (no cure) for: failure to obtain/open location within time limits; abandonment (2+ consecutive or 2+ days/week); loss of premises possession; forfeiture of right to do business; felony conviction or crime affecting system goodwill; public health/safety danger; unauthorized transfer; failure to comply with covenants (Item 19); disclosure of confidential info; uncompleted approved transfer; false books/records/reports; 3+ material defaults in 1 year; continued purchase from unapproved supplier/sale of unapproved items after notice; fraudulent/unfair/unethical/deceptive practice; unauthorized use of Proprietary Marks or contesting ownership. Other defaults have a 30-day cure period. |
| Non-Compete Period | During franchise term: no geographical or temporal limitation. After termination/expiration/transfer: 2 years. |
| Non-Compete Details | Prohibits engaging in "Competitive Business" (any business offering technology and/or coding educational opportunities for children, or similar to Code Ninjas Learning Center). During term, no geographical limitation. Post-term, within 7 miles of (a) Accepted Location and (b) any other Code Ninjas Learning Center (operating, operated within past year, or under active development) in the U.S. Also prohibits diverting business/customers, soliciting customers for other purposes, and transferring Accepted Location to a Competitive Business operator for 2 years post-term. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If the franchisee is an entity, an individual owner must be appointed as "Designated Principal" with at least a 10% equity interest, authority over business decisions, and power to bind the franchisee. The Designated Principal must complete training and supervise operations. If the Designated Principal does not supervise full-time, a full-time Center Director (who has completed training) must be employed. All owners of an entity franchisee must sign a guarantee. Principals, supervisors, and managers must sign non-disclosure and non-competition agreements. |
| Required Suppliers | Franchisor or its affiliates are the only approved supplier for some furniture, fixtures, and equipment. Franchisees must purchase all learning materials, curriculum-related items, equipment, furniture, supplies, apparel, and other items from approved suppliers. |
| Supply Restrictions | Franchisees must sell only approved services and products, use approved equipment, and not deviate from standards. They must stop using any disapproved services or products. Any item bearing trademarks requires prior written approval. Franchisees cannot use unapproved suppliers. Franchisor can designate a single supplier for certain items. |
| Franchisor Revenue from Suppliers | $687,267 (approximately 8.8% of total revenues of $7,775,328) from sale of goods/services to franchisees in 2021. Affiliate FranchiCzar received $890,385 (approximately 54% of its total revenues of $1,634,118) from sale of goods/services to franchisees in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Code Ninjas does not offer direct or indirect financing but has relationships with Guidant Financial Group, Inc. Guidant offers: 401(k) Business Financing (allows use of retirement funds without tax penalties or loans, with a $4,995 fee and $139/month annual administration); Conventional and SBA Loans (Guidant brokers these, with a $2,500 consulting fee refundable if funding not secured, 401(k) financing can be used for down payment); Unsecured Financing (up to $125,000, requiring a minimum 680 credit score, with a 9% fee); Equipment Leasing (approvals within 48 hours, 10% down for new locations, interest rates 6.99-13.90%, terms up to 60 months, requires 700+ credit score for new business, 650+ for existing, fee of $250-$500); Portfolio Loans (leverage non-retirement stocks/bonds/mutual funds up to 80% of value, portfolio min $85,000, no minimum credit score, fee of 2-3% of collateral value, start-up locations can defer payments for up to 2 years). Code Ninjas receives a $1,000 referral fee for each client engaging in Guidant's retirement rollover program. |
Code Ninjas Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Code Ninjas Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Code Ninjas System Growth
Code Ninjas currently operates 275 franchised locations and 6 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 117 | 1 | 187 |
| 2020 | 61 | 12 | 236 |
| 2021 | 47 | 8 | 275 |
Transfers: 27 | Closures: 17
State Registrations
Registered in 14 states: CA, NY, HI, ND, IL, RI, IN, SD, MD, VA, MI, WA, MN, WI
Franchisor Financials (Item 21)
Audited by Dixon Hughes Goodman LLP for year ending December 31st.
Code Ninjas Franchise — FAQ
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