About Little Art House Franchise
Little Art House is a children's art studio franchise that began offering franchise opportunities in 2024.
The brand provides a creative space where children can explore art through classes, camps, workshops, and birthday parties.
The studio environment is designed to inspire young artists through hands on experiences with painting, drawing, sculpture, and mixed media.
Little Art House Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of your monthly Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of your monthly Gross Revenue | National brand fund |
| Total Investment Range | $106,050 – $191,500 | Includes build-out, inventory, working capital |
The investment range of $106K–$192K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of your monthly Gross Revenue) and marketing fee (2% of your monthly Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Rent and Security Deposit – Pre-Opening and First 3 Months | $10,000 | $20,000 |
| Leasehold Improvements | $15,000 | $45,000 |
| Equipment, Furniture, Fixtures, Décor, and Office Supplies | $8,000 | $16,000 |
| Computer Hardware and Software | $500 | $2,000 |
| Initial Stock of Studio Supplies | $6,000 | $8,000 |
| Interior and Exterior Signs | $1,000 | $5,000 |
| Out-of-Pocket Expenses During Training | $1,000 | $3,000 |
| Initial Advertising | $1,500 | $3,000 |
| Business Licenses and Permits | $800 | $2,000 |
| Professional Fees | $750 | $5,000 |
| Insurance (Annual Estimate) | $1,500 | $2,500 |
| Additional Funds – 3 Months | $20,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 30% of our then-current standard Initial Franchise Fee (or $2,500 if the owners of an entity franchisee are transferring less than 20% of the ownership interest in the entity) |
| Renewal Fee | 15% of our then current standard Initial Franchise Fee |
| Technology Fee | Then-current rates, currently estimated at approximately $150 to $350 per month |
| Audit Fee | Our reasonable costs for the audit if you understate Gross Revenue by more than 2% or fail to deliver to us required reports on time |
| Local Advertising Expenditure | 1% of Your Monthly Gross Revenue |
| Additional Training at Franchisee’s Request | Then-current rates, currently $350 per trainer per approximately 7-hour day |
| Additional Training or Conventions Required or Offered by Franchisor | We may charge a training fee at our then-current rates, currently up to $350 per day |
| Additional Training Required by Franchisor Based on Franchisee’s Deficiency | Then-current rates, currently $350 per trainer per approximately 7-hour day |
| Training for New Managers (if Conducted by Franchisor) | Then-current rates, currently $350 per trainer per approximately 7-hour day |
| Transfer Commission Fee | 10% commission on the gross transfer price (excluding the price of real property) |
| Relocation | You will reimburse us for our reasonable out-of-pocket costs concerning the relocation. |
| Late Charge | 1.5% per month |
| Late Payment Penalty | 5% of the amount due |
| Proposed Source Testing Costs | As incurred (reimbursement for out of pocket expenses and costs we incur to test new products or sources you request for approval) |
| Re-Inspection Fee | Then-current rates, currently $350 per re-inspection plus the costs of our inspector’s transportation, meals and lodging |
| Mystery Shopper Fee | The portion we allocate to your franchise of the actual costs incurred by us or third-party mystery shopper evaluators |
| Cured Lease Breach Reimbursement Fee | Total amount of all costs and payments we incur in effecting the cure |
| Interim Management Fees | A reasonable management fee for management services if we step-in to operate your franchise |
| Site Location Assistance Fee | As incurred (reimbursement for all reasonable out-of-pocket costs) |
| Alternative Supplier Review Fee | A reasonable fee to evaluate alternative suppliers and supplies that you propose |
| Liquidated Damages Upon Termination | The amount you would have paid for Royalty Fees for the lesser of (1) the remaining term of the Franchise Agreement, or (2) 24 months |
| Indemnification | As incurred (defend, indemnify and hold us harmless from all claims, losses, and expenses) |
| Cost of Enforcement | As incurred (recover reasonable attorneys’ fees and all other expenses we incur in enforcing obligations) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 20-28 hours of classroom training and 10-14 hours of on-the-job training for Operations, plus 9-12 hours of classroom and 4-6 hours of on-the-job for Instructional. |
| Classroom Training | Operations: 19-24 hours; Instructional: 9-12 hours |
| On-the-Job Training | Operations: 10-14 hours; Instructional: 4-6 hours |
| Training Location | Nashville or Virtual, On-site or Virtual |
| Additional Training | We may provide refresher training programs or seminars and may require that you or your managers attend and complete them at locations we designate. We may charge a reasonable training fee at our then-current rates. Additional training requested by you will be at our headquarters or other agreed upon locations, with negotiable duration and timing, and all expenses borne by you. Additional training may be required if you breach the Franchise Agreement, fail inspections, or fail to meet standards, with a reasonable training fee charged. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically, a 3-mile radius around the center of the Franchise Premises, but may vary in size and dimensions (e.g., smaller in highly populated urban areas). |
| Description | You will be given a specific territory for your Franchise (the “Franchise Territory” or “Territory”). Typically, the Franchise Territory will consist of a 3-mile radius around the center of the Franchise Premises. However, franchise territories may vary in size and dimensions. We will designate the boundaries based on factors like location of Franchise Premises, regional population, competition, geography, market analysis, market penetration plans, and franchise placement strategies. We will not establish or allow others to establish a Little Art House business physically located within your Franchise Territory using our Marks and System so long as the Franchise Agreement is in force and you are not in default. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 15% of our then current standard Initial Franchise Fee |
| Renewal Conditions | You must give notice at least three and not more than six months before expiration of the initial term; faithfully perform under the initial agreement; refurbish, remodel, and replace the Franchise Premises (if commercial location), fixtures, equipment, and signage to conform to the then-current Operations Manual and System standards; sign general release (subject to state law); sign a new agreement that may contain materially different terms and conditions from the original contract; pay a renewal fee; and go through retraining (if we require it). |
| Transfer Fee | 30% of our then-current standard Initial Franchise Fee (or $2,500 if the owners of an entity franchisee are transferring less than 20% of the ownership interest in the entity) |
| Transfer Conditions | The transferee must qualify as a franchisee, assume your obligations, and successfully pay for and complete the mandatory training. You may not be in default, must sign a general release (subject to state law), and you or the transferee must pay the Transfer Fee. You or the transferee must refurbish, remodel, and replace the Franchise Premises (if commercial location), fixtures, equipment, and signage to conform to the then-current Operations Manual and System standards. |
| Termination for Cause | We can terminate only if you default. Any material violation or breach of the Franchise Agreement is deemed a material breach of any other franchise or other agreement between you and us. The non-breaching party then will be entitled to enforce the penalties of or to terminate the Franchise Agreement and any relevant addenda and any or all of such other Franchise Agreements. Curable defaults have a 30-day cure period. Non-curable defaults include bankruptcy, abandonment, repeated default, misrepresentations, criminal conviction, noncompliance with laws, non-payment of fees, repeated underreporting of sales, disclosure of confidential information, violation of non-competition covenants, and other listed defaults. |
| Non-Compete Period | During the term of the Franchise and for a period of two years after expiration or termination of the Franchise Agreement. |
| Non-Compete Details | Subject to state law, you shall not disclose confidential information, divert business or customers, or compete. After termination or expiration, no competition is allowed for two years within the Territory, within a 25-mile radius of the Territory, and within a 25-mile radius of any location or territory where we operate or have granted the franchise to operate a Little Art House business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You will not be required to participate directly in the day-to-day operation of the Franchise, but it must be under your general supervision as it is ultimately your responsibility to comply with the Franchise Agreement. You may designate a manager to assume responsibility for day-to-day operations. Any managers you employ must complete the mandatory initial training program. The manager is not required to have any equity interest in your franchise business entity. All owners must sign the Franchise Agreement directly or a Confidentiality and Non-Competition Agreement and a Personal Guaranty. |
| Required Suppliers | You must purchase all items and services needed for the operation of your franchise either from us, our affiliates, one or more exclusively designated suppliers, our approved suppliers, or subject to our standards and specifications as we will designate. Specific requirements include art-making tools and supplies, service equipment, studio management supplies, advertising materials, and the specific point of sale system (hardware and software) and other designated software. |
| Supply Restrictions | You must construct and develop your store in accordance with our exterior and interior materials and finishes, dimensions, design, image, interior layout, décor, fixtures, furnishings, equipment, color schemes and signs consistent with System products and Marks. We may amend the Operations Manual, including changes that may affect minimum requirements for your franchise operations. You will strictly follow the requirements of the Operations Manual as we amend it. You will carry out immediately all changes at your cost, unless we specify otherwise. You must purchase all items and services needed for the operation of your franchise either from us, our affiliates, one or more exclusively designated suppliers, our approved suppliers, or subject to our standards and specifications as we will designate. You must buy only specific brands (as we will designate): art-making tools and supplies, service equipment (e.g. trays), studio management supplies (e.g. cleaning supplies). We may require you to purchase advertising materials and all other items that bear the Marks from our approved or mandatory suppliers. You must purchase the specific point of sale system (hardware and software) and other software we designate for customer registration and scheduling, teacher scheduling, accounting, email, word processing, communications, and reporting. You have or purchase a computer, printer, scanner, telephone, and high-speed internet, all of which must comply with our minimum standards and specifications. You must purchase all other items and/or services in compliance with our minimum standards and specifications as may be outlined in our Operations Manual. |
| Franchisor Revenue from Suppliers | $0 (which was 0% of our total revenue) during our last fiscal year. We and our affiliate may receive rebates, price adjustments, or discounts on products or services sold to you by recommended or approved suppliers, but we do not yet receive them. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not provide direct or indirect financing and do not assist in providing financing for you. We do not guarantee any notes or financial obligations. |
Little Art House Franchise Earnings — Item 19
Little Art House does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Little Art House 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.
Little Art House System Growth
Little Art House currently operates 0 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 3 |
| 2022 | 1 | 0 | 4 |
| 2023 | 0 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 21 states: CA, CT, FL, HI, IL, IN, IA, MD, MI, MN, NE, NY, ND, TN, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by No certified public accountant had audited these figures or expressed his/her opinion with regard to the content or form. for year ending September 30.
Little Art House Franchise — FAQ
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