About Starz Program Franchise
Starz Program is a children's enrichment franchise that brings engaging educational activities directly to kids through mobile and independent location formats.
The brand focuses on programs designed to build confidence, creativity, and social skills in young learners through interactive and age appropriate sessions.
With a mobile unit model that travels to schools, daycares, and community centers, Starz Program offers a flexible business structure that keeps overhead low while maximizing reach.
Starz Program Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $39,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently $0, but if implemented then up to 2% of gross sales | National brand fund |
| Total Investment Range | $42,150 – $130,625 | Includes build-out, inventory, working capital |
The investment range of $42K–$131K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales) and marketing fee (Currently $0, but if implemented then up to 2% of gross sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (Note 1) | $39,000 | $105,000 |
| Initial training (per person) (Note 2) | $0 | $2,000 |
| Your Travel, living expenses and salaries during initial training (Note 3) | $0 | $3,500 |
| Initial inventory and equipment | $300 | $4,000 |
| Branded Signage (Note 4) | $500 | $500 |
| Computer system and software (Note 5) | $1,500 | $2,500 |
| Legal and accounting fees (Note 6) | $0 | $3,500 |
| Insurance premiums (Note 7) | $350 | $625 |
| Rent (Note 8) | $0 | $8,000 |
| Additional funds – first three months (Note 9) | $500 | $1,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 10% of the then current initial fee plus training expenses |
| Renewal Fee | 20% of the then-current initial fee plus reimbursement of our legal and professional expenses. |
| Audit Fee | Deficiency amount shown by audit plus interest and cost of inspection/audit, legal and accounting fees, and travel expenses of auditing/inspecting personnel |
| Branded Uniform Fee | Currently, $125 |
| Optional Training Fee | Our then current fees for training (currently $350 per day) plus expenses for each person we send to provide assistance or training. |
| Regional Advertising Cooperative | Currently $0, but if implemented then up to 1% of gross sales |
| Conference fee | No more than $1,000 per annual conference, depending on our direct costs |
| Non-Compliance Fee | $100 per non-compliance |
| Event fee | $50 to $500 |
| Refresher training fee | Our then current fees for training (currently $350 per day to $400) plus travel and living expenses for each person we send to your franchised business to provide training |
| Management fee | Reasonable management fee in addition to the Royalty and Marketing Fee |
| Insurance | Our actual costs of the premium and related costs for the period of coverage plus a 25% service charge |
| Inspection or observation | Our actual costs |
| Unauthorized product or service fee | $50 per day of use of unauthorized products or services plus our actual out-of-pocket costs for our inspection |
| Hiring Assistance Fee | $125 per instructor |
| Teacher Online Training Fee | Ranges from $45-$125 per course per teacher |
| Violation Fee | $200 per violation |
| Returned check/EFT fee | $75 for each NSF or EFT returned |
| Interest | The lesser of 1.5% per month or the highest rate allowed by law |
| Late fee | The greater of 15% of the amount due or $25 for each required payment that is late |
| Failure to Report | 120% of the last Royalty that we debited (together with the late fee noted above) |
| Liquidated damages | Average monthly royalty over last 12 months multiplied by 24 or such fewer number of months that remain in the first five years of the term, but not less than six months. |
| Attorneys' fees and costs | Our actual costs |
| Indemnification | Our actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | three-to-five-day initial training course |
| Classroom Training | 8-13 hours |
| On-the-Job Training | 4-13 hours |
| Training Location | Richmond, Virginia, at your location, or virtually. |
| Additional Training | If you request and if we approve, we will provide additional training at an agreed location. You will pay the travel, room, board, and the then-current daily fee for such services (currently $350 per day). If any review indicates noncompliance... we may require you to attend refresher training courses... and we may send our personnel... for training. In these cases, we may also charge a fee of $350 to $400 per day plus travel and living expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | minimum population of 150,000 and maximum population of 200,000 people. |
| Description | geographic area with a minimum population of 150,000 and maximum population of 200,000 people. We will define the geographic boundaries of your territory by either zip codes, county lines, or otherwise as we deem appropriate. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten years |
| Renewal Term | additional ten year term |
| Renewal Fee | 20% of the then-current initial franchise fee |
| Renewal Conditions | Notify us of your desire to renew 6-12 months before the end of the term; and sign a new franchise agreement which may contain materially different terms and conditions than your original contract. We may require you to sign a release, subject to state law. You must also pay a renewal fee equal to 20% of the then-current initial franchise fee. |
| Transfer Fee | 10% of the then current initial fee plus training expenses |
| Transfer Conditions | The proposed transferee, its management and owners, must be individuals of good character with sufficient business experience, aptitude, and financial resources to operate the Franchised Business and otherwise meet our then applicable standards for a new Starz Program franchisee. Neither the proposed transferee nor any of its management or owners may be a Competitive Business. You will cure any default. You will pay all fees and any other amounts then owed. Transferee will enter into our then current form of franchise agreement. You, we and each transferor will execute a written agreement terminating this Agreement. Transferee or its designated personnel will have completed such training. We will have approved the material terms and conditions of such transfer. |
| Termination for Cause | Misrepresentation to us; failure to open the business within the required time; failure to make payments on time even after notice; unauthorized disclosure of confidential information; unauthorized use of Marks; attempted transfer without our approval; failure to pay taxes; failure to maintain insurance; criminal conviction; insolvency; failure to allow our representatives to inspect and observe operations and records; failure to remove objectionable content on social media; maintaining false books or records; abandonment of the business; failure to perform annual background checks; failure to pay taxes; default under another Starz Program franchise agreement; damage to our goodwill. |
| Non-Compete Period | two years thereafter |
| Non-Compete Details | No competing business in the U.S. or in any other country in which a Starz Program business operates during the term. After termination/expiration, no competing business within the Territory or within 5 miles of the Territory of any Starz Program business in the United States for two years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The managing owner of your company must attend and complete our initial training. Your franchised business is always managed and directly supervised by the managing owner. The Managing Owner will actively devote his or her full time, attention and effort to the Franchised Business. |
| Required Suppliers | You must use advertising material from us, a vendor that we designate, or we must approve the advertising in writing, prior to its use. You must purchase teacher background checks through us. We require you to use such computer hardware, software, subscriptions, and systems as we specify, which may include vendor designations. You must purchase signage, certain branded items, teacher badges, and teacher uniforms from us. |
| Supply Restrictions | Approximately 90% of your expenditures for leases and purchases in establishing your franchised business and 40% of your expenditures in operating the franchised business on an ongoing basis will be for goods and services that are subject to sourcing restrictions, meaning goods and services that must be from a designated or approved supplier or otherwise meet our standards or specifications. |
| Franchisor Revenue from Suppliers | In our fiscal year 2024, we did not earn any revenue or other material consideration from required franchisee purchases or leases. In our last fiscal year, our affiliates did not earn revenue or other material consideration from required purchases or leases by franchisees. In the fiscal year ended December 31, 2024, we did not yet receive any supplier rebates but reserve the right to receive supplier rebates in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Starz Program Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Starz Program 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.
Starz Program System Growth
Starz Program currently operates 4 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 1 | 5 |
| 2023 | 0 | 1 | 4 |
| 2024 | 2 | 1 | 5 |
Transfers: 1 | Closures: 3
State Registrations
Registered in 2 states: MD, VA
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
Starz Program Franchise — FAQ
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