Verified — real FDD extraction
Not found in the SBA Franchise Directory — SBA financing may be unavailable; verify with your lender
IMAGINE ARTS ACADEMY
Education & Children · independent · est. —
Imagine Arts Academy provides children's visual-arts and creative enrichment classes, often run as after-school programs, camps, and parties. A franchisee operates the program by arranging classes (frequently at schools and community sites), hiring instructors, and managing enrollment.
IMAGINE ARTS ACADEMY net unit count declined -13.0% from 2021–2023 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Too new to judge
Distress
24 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.
Exit rate · latest year
25.0%
vs 6.9% across 20 education & children systems
Cost to open
$128K–$288K
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2021–2023
Survival record
FDD Item 20 · outlet status by year
In fiscal 2023, 6 of 24 franchised outlets left the system — a 25.0% annualized exit rate, vs 6.9% across 20 education & children systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 22 | 23 | 24 |
| Opened | 1 | 2 | 2 |
| Transfers | 0 | 0 | 1 |
| Terminations | 0 | 1 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 6 |
| Outlets at end | 23 | 24 | 20 |
| Net change | +1 | +1 | -4 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $49K franchise fee (Item 5) and a total investment of $128K–$288K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$128K–$288K
all-in investment range
Franchise fee (Item 5)
$49K
upfront, one-time
Royalty (Item 6)
8%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$80K
8% of sales, before profit
Over a 10-yr term
$800K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for IMAGINE ARTS ACADEMY with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for IMAGINE ARTS ACADEMY. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing IMAGINE ARTS ACADEMY's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →IMAGINE ARTS ACADEMY franchise questions, answered from the filings
What percentage of IMAGINE ARTS ACADEMY franchises closed last year?
In IMAGINE ARTS ACADEMY's latest FDD Item 20 (fiscal 2023), 6 of 24 franchised outlets left the system — an annualized exit rate of 25.0% — compared with 6.9% across 20 education & children systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a IMAGINE ARTS ACADEMY franchise cost?
Per IMAGINE ARTS ACADEMY's 2023 FDD, buying in requires an initial franchise fee of $49K (Item 5) and a total initial investment of $128K–$288K (Item 7).
What royalty does IMAGINE ARTS ACADEMY charge?
IMAGINE ARTS ACADEMY charges an ongoing royalty of 8.0% of gross sales, per Item 6 of its 2023 FDD.
Does IMAGINE ARTS ACADEMY disclose earnings (Item 19)?
Yes — IMAGINE ARTS ACADEMY makes a financial performance representation in Item 19 of its 2023 FDD. Read it closely: franchisors choose which units and which metrics to include.