About Créatif Franchise
Creatif is a family friendly creative arts studio franchise offering art parties, workshops, children's art classes, camps, and walk in painting activities.
The concept primarily serves parents seeking enriching creative outlets and birthday party options for children aged 3 to 12, as well as teens.
The franchise fee is $45,000, and the brand has been franchising since 2020.
Créatif Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 7% of weekly Gross Revenue, or a weekly minimum of $100 (Calendar Year 2), $140 (Calendar Year 3), $170 (Calendar Year 4) and $200 (Calendar Years 5+), whichever is greater. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenue, subject to increase to no more than 2% of Gross Revenue | National brand fund |
| Total Investment Range | $183,667 – $307,311 | Includes build-out, inventory, working capital |
The investment range of $184K–$307K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of weekly Gross Revenue, or a weekly minimum of $100 (Calendar Year 2), $140 (Calendar Year 3), $170 (Calendar Year 4) and $200 (Calendar Years 5+), whichever is greater.) and marketing fee (1% of Gross Revenue, subject to increase to no more than 2% of Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Your Training Expenses | $1,000 | $3,000 |
| Premises deposit | $8,000 | $11,600 |
| Utilities deposits | $1,000 | $1,500 |
| Design and Architect Fees | $3,500 | $8,500 |
| Leasehold Improvements, Construction and/or Remodeling | $55,000 | $100,000 |
| Furniture, Fixtures, & Equipment | $30,000 | $85,805 |
| Exterior Signage | $3,000 | $5,000 |
| Business Licenses and Permits | $750 | $1,000 |
| Certifications | $42 | $56 |
| Computer Systems | $5,250 | $6,750 |
| Initial Inventory to Begin Operating | $5,000 | $5,500 |
| Association Dues | $300 | $750 |
| Equipment | $3,400 | $3,600 |
| Professional Fees | $2,500 | $3,000 |
| Initial Launch Marketing & Grand Opening Advertising | $5,000 | $6,000 |
| Insurance | $875 | $1,050 |
| Operating Expenses / Additional Funds – 3 months | $14,050 | $19,200 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 75% of the then-current initial franchise fee (50% for existing franchisees, $1,500 for internal transfers, $3,500 for spouse/parent/child upon death/disability). |
| Renewal Fee | 15% of the then-current initial franchise fee |
| Technology Fee | $200 monthly, subject to increase to $300 monthly and 10% increases thereafter |
| Audit Fee | Cost of examination plus related expenses if understatement of 2% or more of Gross Revenue is found. |
| Required Minimum Expenditure for Local Marketing and Advertising | 2% of Gross Revenue, or $300, whichever is greater. Weekly. |
| Advertising Cooperative | Your share of actual cost of advertising. As determined by cooperative. |
| Late Charge | $100. As incurred. |
| Interest Charge | 18% per annum from due date, or maximum allowed by law. As incurred. |
| Non-Sufficient Funds Fee | $100. As incurred. |
| Transfer Fee – Multi-Unit Development Agreement | $15,000 ($10,000 for existing franchisee/developer, $1,500 for transfers among owners, no fee for spouse/parent/child upon death/disability). |
| Initial Training (additional personnel) | $200 per person per day (travel and related expenses paid by franchisee). |
| Additional Training | $500 per session (plus travel and related expenses). |
| Remedial Training Fee | $350 per day per trainer (plus travel and other expenses). |
| Interim Management Support Fee | $400 per day (plus travel and other expenses). |
| Evaluation Fee of Unapproved Item or Supplier | $1,000. As incurred. |
| Quality Review Services | Up to $750, yearly, subject to increase. As incurred. |
| Software/Applications Fees | $250 monthly, subject to increase. |
| Accounting Services | Actual costs. As incurred (required for first 2 years to use designated firm). |
| Relocation Fee | One-third (1/3) of the then-current initial franchise fee. As incurred. |
| Liquidated Damages | Up to 24 months of Royalty Fees and Brand Fund Contributions. Upon termination due to default. |
| Indemnification | Amount of loss or damages plus costs. As incurred. |
| Reimbursement of Cost and Expenses for Non-compliance | Actual costs and expenses. As incurred. |
| Reimbursement of legal fees and expenses | Franchisor's costs and expenses, including attorneys’ fees, for franchisee's failure to pay or comply. As incurred. |
| Confidential Operation Manual Replacement Fee | Currently $250, subject to change. As incurred. |
| Insurance Reimbursement | Amount paid by franchisor for franchisee's insurance obligations, plus a 10% administrative fee and legal fees. As incurred. |
| Taxes | Amount of taxes. When incurred. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 10 days |
| Classroom Training | 34 hours |
| On-the-Job Training | 46 hours |
| Training Location | Pleasanton, California (headquarters/affiliate-owned location) or virtually, or another designated location. |
| Additional Training | Mandatory and/or optional additional training programs, including an annual business meeting or convention, may be offered. Franchisees may be required to attend up to five days per year at a designated location, incurring a reasonable fee for tuition/attendance, plus all travel, lodging, meals, and wages expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited Protected |
| Exclusive Territory | No |
| Territory Size | Minimum population of 80,000 or a 5-mile radius if population is less than 80,000 within 5 miles. |
| Description | The territory is defined after the location is approved, covering all or a portion of a town, city, or county, identified by contiguous zip codes. It is determined based on minimum numbers of households, average home prices, and household incomes. While no other Créatif outlet will be opened within the territory, the franchisor reserves the right to sell products/services through alternative distribution channels (e.g., retail outlets, schools, internet) within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Up to 3 additional terms of 5 years each |
| Renewal Fee | 15% of the then-current initial franchise fee |
| Renewal Conditions | To renew, franchisees must be in full compliance with the agreement, have no more than three defaults during the current term, provide written notice at least six months before expiration, execute a new franchise agreement (which may have materially different terms), pay the renewal fee, maintain location standards, execute a general release, and meet current training requirements. |
| Transfer Fee | 75% of the then-current initial franchise fee (50% for existing franchisees, $1,500 for internal transfers, $3,500 for spouse/parent/child upon death/disability). |
| Transfer Conditions | Transfers require franchisor's prior written consent, which will not be unreasonably withheld. Conditions include the transferee meeting current franchisee standards, having sufficient business experience and financial resources, completing initial training, and the franchisee having paid all amounts owed. The transferee must sign the then-current franchise agreement, and both parties must execute a general release. The franchisee must subordinate any claims against the transferee to the franchisor and indemnify the franchisor for misrepresentations. Franchisor approval of material terms and conditions, including price, is required, and the lessor's consent may be needed. |
| Termination for Cause | Termination for cause can occur for various defaults, some leading to automatic termination (e.g., bankruptcy, insolvency) and others allowing immediate termination upon notice (e.g., falsifying reports, ceasing operations for 5+ days, repeated understatement of gross revenue, unauthorized transfers, felony conviction, creating public health/safety threat, repeated defaults). Curable defaults, such as non-payment of fees or non-monetary obligations, typically allow 5 days to cure, but repeated instances (e.g., 3+ defaults or 2+ late payments in 12 months) become non-curable. |
| Non-Compete Period | 24 months |
| Non-Compete Details | After termination, franchisees and principals may not divert customers to competitors or participate in any competing creative arts business within 20 miles of their former Créatif outlet or any other Créatif outlet (franchised or company-owned). They also cannot engage in any act damaging the goodwill of the Marks or System, or disrupt the business of the franchisor or other franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (if an individual) or all owners (if an entity) must personally supervise the Créatif outlet. A general manager may only be appointed with prior written consent from the franchisor. If approved, the general manager must successfully complete the Initial Management Training Program, devote full-time to the role, and have no competing business interests. All owners of an entity franchisee must personally sign the Franchise Agreement, and a married individual's spouse must sign a Spouse Guaranty. |
| Required Suppliers | RHDC (interior design), Experience Mint (furniture, fixtures, and equipment), Tvara LLC (proprietary software Créatif Studio Manager and Art Pad). |
| Supply Restrictions | Franchisees must purchase all equipment, fixtures, inventory, supplies, and services from designated suppliers or in accordance with franchisor specifications. Approval for alternative items or suppliers requires a written request, samples, and a $1,000 evaluation fee. Approval is at the franchisor's sole discretion and can be revoked if standards are not met. Criteria for approval are not disclosed to franchisees. |
| Franchisor Revenue from Suppliers | As of June 30, 2021, no revenue from software licensing to franchisees by Tvara LLC. Franchisor receives referral fees from Pango Financial, LLC ($100-$1,300 per loan) and Benetrends ($1,000 for 401K rollovers). Franchisor may receive other revenue, rebates, or discounts from suppliers in the future and may keep them. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing, nor does it guarantee any notes, leases, or obligations. However, it has preferred third-party providers: Pango Financial, LLC for sourcing loans (franchisor receives $100-$200 referral fee per loan) and Benetrends for 401K rollovers and other business funding (franchisor receives $1,000 referral fee). |
Créatif Franchise Earnings — Item 19
Créatif 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.
Créatif 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.
Créatif System Growth
Créatif 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 |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Créatif Franchise — FAQ
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