FDD Analysis 2025 FDD

STEM Builders Learning Center Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from STEM Builders Learning Center's FDD, including franchise costs (Item 7), ongoing fees (Item 6), and unit growth trends (Item 20).

What the STEM Builders Learning Center FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Not disclosed by this franchisor

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$45,000 - $104,700
Franchise Fee$25,000

Investment Breakdown

Initial franchise fee (see Note 1)$25,000 - $25,000
Rent (one month) (see Note 2)$3,000 - $4,000
Lease Security Deposit (see Note 2)$3,000 - $4,000
Utilities$200 - $500
Leasehold Improvements (See Note 3)$3,000 - $5,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee7% of gross sales
Marketing/Advertising Fee7% of gross sales

Other Ongoing Fees

National Brand Fund Fee2%
Additional TrainingVaries
TransferVaries
Audit (less than 3% under reporting)Varies
Audit (3% or more under reporting)Varies

Item 19 Financial Performance

Revenue and financial data (if disclosed)

No Item 19 Disclosure

STEM Builders Learning Center does not provide a Financial Performance Representation in their FDD. Franchisors are not required to disclose this information.

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

4

Total Units

-1

Net Growth (YoY)

-20.0%

Growth Rate

Franchised Units3
Company-Owned Units1

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

No material litigation disclosed in Item 3.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

No Revenue Disclosure

Without Item 19 data, you'll need to conduct your own due diligence on unit economics by speaking directly with existing franchisees.

Related Resources

STEM Builders Learning Center Overview

Full franchise profile and details

Is STEM Builders Learning Center Worth It?

Investment analysis and evaluation

Education & Training Revenue Rankings

Compare revenue across the industry

All Education & Training Franchises

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