About The Fashion Class Franchise
The Fashion Class is an education franchise that teaches children and teens the art of fashion design, sewing, and creative expression.
Each location offers classes, camps, workshops, and birthday parties where young designers learn to sketch, sew, and create their own garments and accessories.
The brand has been franchising since 2023.
The Fashion Class Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (System-Wide Brand Fund, may increase to 2%) and at least 2.5% of gross sales each month on local marketing. | National brand fund |
| Total Investment Range | $114,900 – $194,800 | Includes build-out, inventory, working capital |
The investment range of $115K–$195K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (1% of Gross Sales (System-Wide Brand Fund, may increase to 2%) and at least 2.5% of gross sales each month on local marketing.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Your Training Expenses | $3,000 | $6,000 |
| Rent and Lease Security Deposit | $5,000 | $15,000 |
| Utilities | $200 | $800 |
| Leasehold Improvements | $5,000 | $25,000 |
| Furniture, Fixtures, and Equipment | $20,000 | $26,000 |
| Computer Systems | $1,700 | $2,500 |
| Insurance | $1,000 | $3,000 |
| Signage | $2,000 | $6,000 |
| Classroom Supplies | $7,500 | $9,500 |
| Inventory | $3,000 | $4,000 |
| Licenses and Permits | $500 | $2,000 |
| Dues and Subscriptions | $0 | $250 |
| Professional Fees (lawyer, accountant, etc.) | $1,000 | $5,000 |
| Additional funds (for first 3 months) | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Renewal Fee | $5,000 |
| Technology Fee | $246.50 Monthly |
| Audit Fee | Our actual cost |
| Local Marketing Advertising | After you open, you must spend at least 2.5% of gross sales each month on marketing your business. |
| Market Cooperative Contribution | As determined by co-op. Currently, none. |
| Initial Training (replacement/additional trainee) | $600/day. |
| Additional Training | $400 per day |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, $500. |
| Non-compliance fee | $500 (initial), then $250 per week |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 |
| Non-Sufficient Funds Fee | $30 (or maximum allowed by law) |
| Interest Charge | 1.5% per month from due date, or maximum allowed by law |
| Costs of collection | Our actual costs |
| Special support fee | Our then-current fee, plus our expenses. Currently, $600 per day. |
| Customer complaint resolution | Our expenses |
| Special inspection fee | Currently $600, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated damages | An amount equal to royalty fees and marketing fund contributions for the lesser of (a) 2 years or (b) the remaining weeks of the franchise term. |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | seven (7)-day course |
| Classroom Training | 22 |
| On-the-Job Training | 36 |
| Training Location | Our affiliate-owned The Fashion Class outlet in New York, New York. |
| Additional Training | Franchisor may offer mandatory and/or optional additional training programs from time to time. If required, you must attend mandatory additional training for up to three days per year at a designated location and an annual business meeting or franchisee conference for up to three days each year at a designated location. Fees may apply for additional training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | minimum population of 250,000 |
| Description | Your Protected Area is located in all or a portion of a listed town, city, or county, and is identified by a group of contiguous zip codes. The Protected Area is determined on an individual basis taking into account demographics, minimum number of households, geographic terrain, and market potential. Your Protected Area will have a minimum population of 250,000 based on the most recent census data. Your Protected Area will be defined and attached to your Franchise Agreement as Attachment 2. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | two (2) additional terms of five (5) years each |
| Renewal Fee | $5,000 |
| Renewal Conditions | Be in full compliance, have no more than three (3) events of default during current term, provide written notice to us at least six months before the end of the term, execute a new franchise agreement, pay us the Successor Agreement Fee of $5,000, continue to have the right to occupy the premises or have received approval from us to relocate, remodel your Franchised Business location, execute a general release, comply with then-current qualifications and training requirements, including completion of additional training. You will be asked to sign a new Franchise Agreement which may contain materially different terms and conditions than your original Franchise Agreement. |
| Transfer Fee | $10,000 plus any broker fees and other out-of-pocket costs we incur |
| Transfer Conditions | Pay transfer fee; buyer meets our standards; buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
| Termination for Cause | We may terminate only if you default. The Franchise Agreement describes defaults throughout. Specific non-curable defaults include insolvency, bankruptcy, falsifying reports, failure to acquire site/open business on time, loss of premises, failure to restore business, failure to comply with laws, lease defaults, understatement of gross revenue, violation of insurance covenants, unauthorized transfer, death/disability without transfer, felony conviction, adverse judgment for fraud/racketeering, concealing revenues/false books, public health/safety threat, refusal of inspection/audit, unauthorized use of IP, non-compliance with non-compete, repeated defaults, insufficient funds, or affiliate defaults. Curable defaults include failure to pay amounts due (5 days to cure, 2 notices allowed per 12-month period) and non-monetary obligations (5 days to cure, 2 notices allowed per 12-month period). |
| Non-Compete Period | During the term of this Agreement and for twenty-four (24) months thereafter upon expiration or termination. |
| Non-Compete Details | During the term: not divert customers to competitors, not participate in any creative arts business similar to the System, not induce employees to leave, not damage goodwill of Marks or System, not jeopardize business. Post-termination (24 months): not divert customers to competitors, not participate in any creative arts business similar to the System within 20 miles of former outlet or any other The Fashion Class location, not induce employees to leave, not damage goodwill of Marks or System, not jeopardize business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires that you personally run the day-to-day operations of the Franchised Business, unless we agree otherwise in writing. Your The Fashion Class outlet must be directly supervised by you or a manager we have approved. If we approve a manager to supervise your Franchised Business, the manager must successfully complete our Initial Training Program and all other training courses we require. You or your approved manager must devote full time to the job. Your manager cannot have an interest or business relationship with any of our competitors. Your manager and all other personnel who will have access to our proprietary and Confidential Information and training must sign our Confidentiality and Non-Compete Agreement. If your Franchised Business is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal. If you are a married individual, your spouse must sign our Guaranty. |
| Required Suppliers | We have identified various suppliers, distributors and manufacturers of equipment, fixtures, inventory, and services that your Franchised Business must use or provide which meet our standards and requirements. You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications. |
| Supply Restrictions | We are the sole supplier of project designs, which we will provide to you free of charge. You cannot use designs from any other source, and you may not create your own designs; however, you may submit ideas to us for approval. |
| Franchisor Revenue from Suppliers | We do not receive any other revenue, rebates, discounts, or other material consideration from any other supplies based on your required purchases of products, supplies or equipment; however, we may do so in the future, and any rebates or discounts we receive may be kept by us in our sole discretion. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. |
The Fashion Class Franchise Earnings — Item 19
The Fashion Class 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.
The Fashion Class 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 Fashion Class System Growth
The Fashion Class currently operates 0 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 |
|---|---|---|---|
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
| 2023 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by KEZOS & DUNLAVY Certified Public Accountants & Business Advisors for year ending December 31.
The Fashion Class Franchise — FAQ
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