About The Bunny Hive Franchise
The Bunny Hive is a children's enrichment franchise offering classes, social opportunities, educational programming, events, and workshops for children from newborn through age four and their caregivers.
Franchising since 2023, the brand's studios provide a beautiful setting for music, art, sensory play, ballet, culinary exploration, learning lab sessions, baby massage, story time, and exploratory play six days a week.
The initial franchise fee is $42,000.
The Bunny Hive Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $42,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Revenues (Brand Awareness Fund Contribution); $1,000 monthly (Local Advertising Expenditure, currently 1% of Gross Revenues for BAF) | National brand fund |
| Total Investment Range | $144,534 – $234,373 | Includes build-out, inventory, working capital |
The investment range of $145K–$234K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenues) and marketing fee (Up to 3% of Gross Revenues (Brand Awareness Fund Contribution); $1,000 monthly (Local Advertising Expenditure, currently 1% of Gross Revenues for BAF)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $42,000 | $42,000 |
| Additional In-Person Site Visits | $0 | $1,500 |
| Signage | $1,750 | $3,500 |
| Décor, Furniture, Fixtures & Equipment | $21,105 | $30,250 |
| Architecture Fees | $0 | $4,000 |
| Lease Security Deposit | $2,383 | $11,717 |
| Rent | $7,150 | $17,575 |
| Improvements | $25,000 | $45,000 |
| Utility Deposits | $250 | $1,200 |
| Initial Supplies | $5,750 | $8,800 |
| Technology (Hardware and Software) | $2,221 | $5,732 |
| Insurance | $750 | $2,100 |
| Training Expenses | $1,575 | $2,000 |
| Grand Opening Advertising | $5,000 | $10,000 |
| Accreditations, Certification, Licenses and Permits | $100 | $500 |
| Legal & Accounting | $2,500 | $3,500 |
| Additional Funds initial period (3 months) | $27,000 | $46,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000, plus broker fees, if any (reduced to $2,000 for non-controlling interest or actual legal fees if greater; $5,000 for current franchisee) |
| Renewal Fee | 10% of the then-current initial franchise fee (Successor Term Fee) |
| Technology Fee | Up to $100 per week (currently, $12 per week) |
| Audit Fee | Costs and expenses (payable if understatement of Gross Revenues is at least 2%) |
| Marketing Cooperative Contribution | An amount we determine that is up to 50% of the local advertising expenditure |
| Digital Marketing Services Fee | A reasonable fee (currently not charged) |
| Proprietary Technology License Fee | A reasonable license fee (currently not charged) |
| Management Fee | Reimbursement of any expenses we incur that are not paid out of the operating cash flow of the Studio, plus 10% of Gross Revenues |
| Initial Training Fee | A reasonable fee (currently, $3,000 per person) for additional persons (beyond two) attending initial training or replacing a person who did not successfully complete the initial training course |
| Additional Training Fee | A reasonable fee (currently $400 per trainer per day) plus travel and living expenses (if any) |
| Annual Refresher Training | A reasonable fee, plus out-of-pocket costs (currently $500 per person for each training session) |
| National Meeting or Annual Convention | A reasonable registration fee (currently $1,000 per person) |
| Insurance | Cost of premium, plus a reasonable administrative fee |
| Inspection Fee | Costs and expenses |
| Advertising Materials Fees | A reasonable fee |
| New Supplier/Product Evaluation Fee | $750 or the actual cost of testing/evaluation, whichever is greater |
| Noncompliance Fee | A reasonable fee that we designate up to $250 per day |
| Interest | 18% per annum or maximum interest rate allowed by law (whichever is less) from due date to date of payment |
| Late/Insufficient Funds Fee | $250 for each late payment or each draft payment that is dishonored; $150 insufficient funds fee for each check or automated bank draft payment that is not honored by your financial institution |
| Relocation | 25% of the then-current initial franchise fee |
| Franchisee Advisory Council Fee | Due as assessed by the Franchisee Advisory Council (currently not assessed) |
| Purchasing Association Fees | As assessed by the purchasing association (currently not charged) |
| Renovations | Actual costs and expenses |
| Quality Assurance Fee | Actual costs and expenses of participation in such systems |
| Liquidated Damages | Will vary under circumstances (average of monthly Royalty Fees and Brand Awareness Fund contributions for last 12 or 24 months, multiplied by lesser of 24 or remaining months in term, discounted) |
| Costs and Expenses | Will vary under the circumstances (payable if franchisor prevails in legal dispute or incurs costs in enforcing agreement) |
| Tax Reimbursement | Will vary under the circumstances (reimbursement for sales, franchise, trademark license, and any other taxes imposed on franchisor/affiliates related to fees/transactions) |
| Indemnification | Will vary under the circumstances (hold harmless, defend, and indemnify franchisor/affiliates against claims/losses) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 19 hours classroom, 25 hours on-the-job |
| Classroom Training | 19 hours |
| On-the-Job Training | 25 hours |
| Training Location | Richmond, Virginia |
| Additional Training | We may provide refresher or additional training programs or seminars from time to time. We may charge a fee for additional and refresher training. Annual refresher training up to four days per year ($500 per person). National business meeting or annual convention ($1,000 registration fee). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | If in a metropolitan area (population exceeding 1,000,000), minimum of 150,000 households. For other areas, minimum of a 10-mile radius from the Accepted Site. |
| Description | Designated by franchisor after site determination, based on population density, demographics, geographical and political boundaries. May be described in terms of contiguous zip codes, street boundaries, county lines, state lines, municipal lines or depicted on a map. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Seven years from the date the Studio opens. |
| Renewal Term | Three 5-year consecutive renewal terms. |
| Renewal Fee | 10% of the then-current initial franchise fee (Successor Term Fee) |
| Renewal Conditions | Right to possess the location; advance notice (120 days to 9 months prior); complete required renovations/modernization; substantially complied with agreements; execute new franchise agreement (may have different terms/higher fees); pay successor fee; staff comply with current requirements; owners sign a release. |
| Transfer Fee | $10,000, plus broker fees, if any (reduced to $2,000 for non-controlling interest or actual legal fees if greater; $5,000 for current franchisee). Non-refundable deposit of $2,000 upon submission of request (not required for non-controlling interest or identical ownership transfer). |
| Transfer Conditions | You and owners sign a release; pay transfer fee; transferee meets standards and completes training; transferee signs new franchise agreement (may have different terms); transferee owners enter guarantee; transferee updates/remodels Studio to current standards; you and owners remain liable for prior obligations; you or transferee pays broker fees. |
| Termination for Cause | Franchisor can terminate if franchisee defaults or certain events occur (failure to pay, understatement of gross revenues, misrepresentation, failure to open, abandonment, bankruptcy, conviction of crime, misuse of Marks, breach of law threatening health/safety, disclosure of confidential info, non-compete violation, unauthorized transfer, default under other agreements). |
| Non-Compete Period | During the term of the Studio; two years after termination, expiration, or transfer. |
| Non-Compete Details | During term: No involvement in a competing business. After termination/expiration/transfer: No involvement in a competing business within a 25-mile radius of your site or any other Studio open/under construction at the time of expiration/termination for two years. Ownership of less than 5% of publicly traded stock is exempt. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner must have a minimum of 10% equity ownership interest if an entity. The Studio must hire an approved Director who devotes full-time attention. During the first six months, the Managing Owner must be the Director, present at least three days (or 24 hours) per week. After six months, another approved person may serve as Director. Additional Directors required for multiple Studios. Managing Owner and Director must complete initial and ongoing training. All employees must be carefully screened, including background checks. |
| Required Suppliers | Franchisor may require purchases to meet specifications, be of a specific brand/kind/model, or be purchased/leased only from approved or designated single sources (including franchisor/affiliates/buying cooperative). Requirements are published in Manuals or in writing. |
| Supply Restrictions | Site selection, site procurement, site development (standard plans/specifications, approved general contractor), signage (conforming to standards, prior approval), vehicles (brand standards, Marks display, good repair), fixtures/equipment (from designated vendors), supplies/inventory/merchandise (from designated vendors), Technology System (specified hardware/software, proprietary software license), advertising (prior approval for unapproved materials, digital marketing control by franchisor), Quality Assurance Programs, Insurance (specified coverages/limits, approved carriers). |
| Franchisor Revenue from Suppliers | Because we are a new franchisor, our and our affiliates’ revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was $0. The percentage of our total revenue from required purchases or leases in the prior fiscal year was 0%. We and our affiliates have the right to collect any rebates or refunds provided by a supplier or vendor in connection with your purchase of any products and services. In addition, we and our affiliates have the right to derive revenue and earn profit from the sale of products and services to you. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing arrangements. We do not guarantee your note, lease or any other obligation. |
The Bunny Hive Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
The Bunny Hive 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.
The Bunny Hive System Growth
The Bunny Hive currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 1 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Seay & Weissinger for year ending July 12, 2023.
The Bunny Hive Franchise — FAQ
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