About Drama Kids Franchise
Drama Kids is a children's enrichment franchise that uses creative drama and performing arts activities to build confidence, communication skills, and self expression in young people.
The brand has been franchising since 2000, offering after school programs, camps, and workshops at schools, community centers, and other venues.
The franchise fee ranges from $35,000 to $45,000.
Drama Kids Franchise Cost & Fees
Minimum Investment
$44K
Average Investment
$54K
Maximum Investment
$65K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 to $45,000 | One-time payment upon signing |
| Royalty Fee | The greater of 8% of Gross Sales or $200 per month beginning two months after completion of the Act Up! Classroom training for ten months, and $500 per month thereafter of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales | National brand fund |
| Total Investment Range | $43,500 – $64,500 | Includes build-out, inventory, working capital |
The investment range of $44K–$65K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 8% of Gross Sales or $200 per month beginning two months after completion of the Act Up! Classroom training for ten months, and $500 per month thereafter) and marketing fee (1% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee(1) | $35,000 | $45,000 |
| Initial Advertising | $5,000 | $10,000 |
| Business and Office Setup(2) | $500 | $2,000 |
| Travel, Lodging, and Meals for Initial Training | $500 | $2,000 |
| Insurance(3) | $500 | $1,500 |
| Additional Funds - (3 Months)(4) | $2,000 | $4,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $5,000 |
| Technology Fee | $50 per month |
| Audit Fee | Cost of audit and inspection, any understated amounts, and any related accounting and legal expenses |
| Remedial or Additional Training | Currently $1,200 per person |
| Field Assistance | The then-current fee (currently $500 per day), plus expenses |
| Social Media Management Fee | The then-current fee (currently $261 per calendar quarter) |
| Annual Conference | The then-current fee (2023 conference was $250 per person) |
| 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 |
| Additional Territory Fee | Then current fee (currently $15,000) |
| Indemnification | All amounts (including attorney fees) incurred by us or otherwise required to be paid |
| Inspection | Our reasonable costs, travel, lodging and meal expenses |
| Costs and Attorney Fees | Will Vary Under Circumstances |
| Broker Fees | Our actual cost of the brokerage commissions, finder’s fees, or similar charges |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 46 Hours |
| Classroom Training | 40 |
| On-the-Job Training | 6 |
| Training Location | Tampa, Florida or other DKI approved location |
| Additional Training | From time to time, we may require that you, managers, and other employees attend system-wide refresher or additional training courses. Some of these courses may be optional while others are required. If you appoint a new replacement manager, that person must attend and successfully complete our initial training program before assuming responsibility for the management of your Drama Kids Business. We may charge you our then-current fee for the training of a replacement manager (currently $1,200). If we conduct an inspection of your class location, or office or studio, if applicable, and determine you are not operating in compliance with the Franchise Agreement, we may require that you attend remedial training that addresses your operational deficiencies. You may also request that we provide additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | A standard Territory generally includes between 60,000 to 100,000 children under the age of 18 years old. An expanded Territory generally includes between 100,000 to 140,000 children under the age of 18 years old. |
| Description | The Territory is determined 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. When determining the Territory, we also may take into account household income levels in the Territory and the number of public and private schools in the Territory, as well as other factors. We may use demographic studies provided by the U.S. Census Bureau. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Seven years |
| Renewal Term | Seven years |
| Renewal Fee | $5,000 |
| Renewal Conditions | If you are in good standing, and you meet other requirements, you may add one successor term of seven years. The term “renewal” refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. You must sign our then-current Franchise Agreement for the successor term, and this new franchise agreement may have materially different terms and conditions (including, e.g., higher royalty and advertising contributions) from the Franchise Agreement that covered your original term; substantial compliance with Franchise Agreement for expiring term; you are solvent, have not abandoned the Drama Kids Business, and are not endangering public health or safety; you have not been convicted of a crime likely to have an adverse effect on us or the Drama Kids Business; you have paid the renewal fee. |
| Transfer Fee | $10,000 |
| Transfer Conditions | We have the right to approve all transfers. Conditions include: Compliance with Franchise Agreement; transferee qualification; payments current; general release; written transfer agreement; transferee’s signing of then-current franchise agreement; transferee’s agreement to complete training; payment of transfer fee; no exercise of our right of first refusal; equipment updated to our then-current specifications; our consent to material terms of transfer; and subordination of obligations of transferee to transferor. |
| Termination for Cause | We can terminate upon certain violations of the Franchise Agreement by you. Curable defaults have 30 days to cure. Non-curable defaults include insolvency, ceasing operations, felony conviction, threat to public health/safety, repeated payment failures, false statements, unauthorized transfers, non-competition, improper disclosure of confidential information, failure to open on time, tax liens, or significant under-reporting of sales. |
| Non-Compete Period | 2 years after the expiration or termination of the Franchise |
| Non-Compete Details | Owners may not have an interest in, own, manage, operate, finance, control, or participate in any competitive business (i) a 20-mile radius from Franchisee’s Drama Kids business (and including the premises of the approved location of Franchisee); and (ii) a 20-mile radius from all other Drama Kids businesses that are operating or under development as of the beginning of the Restricted Period for two years. Owners may not solicit any customer of the Franchise for three years, subject to applicable state law. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | We require that you either directly operate your Drama Kids Business or designate a manager (“Manager”) who has been approved by us. The Manager must meet our criteria and will be principally responsible for communicating with us about the Drama Kids Business. The Manager must have the authority and responsibility for the day-to-day operations of your Drama Kids Business. The Manager must successfully complete our training program. Any Manager, lead teacher, and, if you are an entity, an officer that does not own equity in the franchisee entity, must sign the “Confidentiality and Noncompetition Agreement.” All of your teachers and anyone that may have access to our Confidential Information must sign a “Confidentiality Agreement.” If you are an entity, each direct and indirect owner must sign an “Owners Agreement.” |
| Required Suppliers | You must use the computer hardware and software that we periodically designate to operate your Drama Kids Franchise. You must obtain the computer hardware, software licenses, maintenance and support services and other related services that meet our specifications which may include obtaining them from suppliers we specify. You must obtain the insurance coverage required under the Franchise Agreement. |
| Supply Restrictions | You must operate your Drama Kids Business according to our System and specifications. This includes purchasing or leasing all goods, services, supplies, equipment, inventory, computer hardware and software, related to establishing and operating the Drama Kids Franchise under our specifications, which may include purchasing these items from: (i) our designees, (ii) approved suppliers, and/or (iii) us or our affiliates. |
| Franchisor Revenue from Suppliers | During our last fiscal year, ended December 31, 2023, we did not derive any revenue from the sale or lease of products or services to franchisees. We and our affiliates currently do not receive rebates from any suppliers based on your purchase of products and services. During our last fiscal year, ended December 31, 2023, we did not derive any revenue or rebates from suppliers that sell products or services to our franchisees. |
Drama Kids Franchise Earnings — Item 19
Revenue Range
$8K – $614K
Sample Size
44 units
Past financial performance does not guarantee future results. Individual results will vary.
Drama Kids Litigation & Risk Flags
Clean Litigation RecordDrama Kids has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Drama Kids System Growth
Total Units
51
Franchised
51
Company-Owned
0
Drama Kids currently operates 51 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 3 | 6 | 52 |
| 2022 | 6 | 5 | 53 |
| 2023 | 4 | 6 | 51 |
Transfers: 0 | Closures: 6
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1.1M
Net Income
$230K
Total Assets
$1.0M
Drama Kids Franchise — FAQ
The total investment to open a Drama Kids franchise ranges from $43,500 to $64,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000 to $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Drama Kids charges a royalty fee of The greater of 8% of Gross Sales or $200 per month beginning two months after completion of the Act Up! Classroom training for ten months, and $500 per month thereafter of gross sales, plus a 1% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Drama Kids Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Drama Kids to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Drama Kids franchise owners report . This is based on a sample of 44 units. Past performance does not guarantee future results.
Drama Kids has been franchising since 2000. The FDD shows an investment range of $43,500-$64,500, a The greater of 8% of Gross Sales or $200 per month beginning two months after completion of the Act Up! Classroom training for ten months, and $500 per month thereafter royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 to $45,000 and the total investment ranges from $43,500 to $64,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Drama Kids and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Drama Kids or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com