About Doodle Bugs! Children's Learning Academy Franchise
Doodle Bugs! Children's Learning Academy is a childcare and early education franchise serving children aged 6 weeks to 12 years.
The brand operates purpose built facilities typically ranging from 8,000 to 15,000 square feet, providing structured learning environments that integrate educational programming with enrichment activities including Spanish, computers, dance and fitness, and martial arts.
The franchise fee is $65,000, and the company has been franchising since 2011 under Doodle Bugs! Holding Company, Inc.
Doodle Bugs! Children's Learning Academy Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues (minimum $1,000/month) for Local Marketing Fee; up to 2% of Gross Revenues for Regional Cooperative Marketing Fee (if applicable); currently 0% of Gross Revenues for National Marketing Fee (may increase up to 2%). | National brand fund |
| Total Investment Range | $492,875 – $6,645,500 | Includes build-out, inventory, working capital |
The investment range of $493K–$6.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenues) and marketing fee (1% of Gross Revenues (minimum $1,000/month) for Local Marketing Fee; up to 2% of Gross Revenues for Regional Cooperative Marketing Fee (if applicable); currently 0% of Gross Revenues for National Marketing Fee (may increase up to 2%).) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Preliminary Agreement Fee | $25,000 | $25,000 |
| Franchise License Fee | $65,000 | $65,000 |
| Background Check | $5,500 | $5,500 |
| Center Development Fee (Optional) | $0 | $80,000 |
| Center Equipment, Computer Hardware, and Supplies | $175,000 | $350,000 |
| Real Estate and Development Costs (if purchased) | $0 | $5,500,000 |
| Lease and Utility Security Deposits | $2,500 | $65,000 |
| Pre-Opening Marketing | $25,000 | $75,000 |
| Vehicles | $875 | $65,000 |
| Signage | $13,000 | $25,000 |
| Software (operations/security) | $2,000 | $10,000 |
| Licenses | $500 | $5,000 |
| Marketing fees (3 months) | $7,500 | $10,000 |
| Insurance | $5,000 | $25,000 |
| Legal fees | $1,000 | $5,000 |
| Opening Inventory of Supplies | $5,000 | $15,000 |
| Bank/Financing Costs | $10,000 | $75,000 |
| Additional Funds (3 months) | $150,000 | $300,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $25,000 plus costs and expenses incurred by franchisor. |
| Renewal Fee | $5,000 plus all legal costs |
| Technology Fee | $948 annually for Pro Care Software maintenance agreement. |
| Audit Fee | Cost of audit including charges of any independent accountant and related travel expenses if an audit or inspection reveals that you have underreported Gross Revenues by 3% or more for any week. |
| Local Support Fee | 1% of Gross Revenues, if applicable |
| Additional Training Fee | $60/hour and a maximum of $500/day, plus expenses |
| Training Materials | Varies |
| Annual Franchise Conference | $195 per attendee |
| Transferee Training Fee | $15,000 |
| Processing Fee (for transfer to wholly-owned entity) | $500 |
| Interest and Late Fee | Interest at 1.5% per month, or the highest rate permitted by law, plus a 10% late fee on past due amounts |
| Service Fee (if franchisor operates after default) | $60/hour and a maximum of $500/day, plus costs and expenses |
| Site Selection and Evaluation Fee (for additional assistance) | $60/hour per person, plus costs and expenses |
| Management Assistance Fee | $60/hour and a maximum of $500/day, plus costs and expenses |
| Indemnification | Franchisor's losses, costs, expenses (including attorneys’ fees), and damages |
| Insurance Reimbursement | Franchisor's costs (if franchisor obtains insurance for franchisee) |
| Reimbursement to Families | Amount of refunds franchisor makes to families |
| Marketing and Promotional Materials | Cost of production, shipping, handling, and storage of materials |
| Costs and Attorneys’ Fees (if franchisor prevails) | Will vary under the circumstances |
| Testing of new suppliers | Franchisor's costs in evaluating a proposed supplier |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 15 days for Initial Training. Center Director training typically lasts 10 days. |
| Classroom Training | 92 |
| On-the-Job Training | 0 |
| Training Location | Buffalo, New York, or at other specified locations, which may include an existing Center or virtually through online video-conferencing. |
| Additional Training | Franchisor may require franchisee, Center Director, and employees to complete additional training, including programs provided by third parties. Center Director training is required for new Center Directors, and an Annual Franchise Conference may be established. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Generally a 5-mile wide circle, with the Center at its center. In cities with populations over 500,000, the territory will be smaller, typically no less than a 2-mile wide circle. |
| Description | The exact boundaries are defined in the Franchise Agreement after location approval and demographic analysis. Factors considered include population, projected growth, age, income, marital status, age of children, workplace population, competitors, elementary school locations, traffic patterns, economic data, business entities, and geographical features. While the franchisor will not open another Doodle Bugs! center within the territory, there are no restrictions on where customers may come from. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 1 additional term of 5 years |
| Renewal Fee | $5,000 plus all legal costs |
| Renewal Conditions | Franchisee must be current on all fees, have no more than two monetary defaults in the last three years, not be in material breach of any agreement, be in substantial compliance with the franchise agreement, pay a renewal fee, sign the then-current franchise agreement, maintain possession of the Center, remodel according to current standards, provide 6-12 months' notice, and sign a general release. |
| Transfer Fee | $25,000 plus costs and expenses incurred by franchisor. |
| Transfer Conditions | Center must be open, all monetary obligations paid, no material breach, background check fee paid by transferee, transferee signs then-current agreements, pays transfer fee and $15,000 training fee, successfully completes training, meets franchisor's standards, obtains occupancy/licensing approvals, agrees to remodel, and franchisee signs a general release. Franchisor has a 60-day right of first refusal. |
| Termination for Cause | Franchisor may terminate for various causes including material misrepresentation, failure to open on time, unsatisfactory training completion, abandonment, unauthorized transfers, felony conviction, dishonest conduct, loss of premises, unauthorized use of trade secrets, violation of laws, failure to pay fees, understating gross revenues, repeated defaults, bankruptcy, or creating immediate health/safety concerns. |
| Non-Compete Period | 24 months |
| Non-Compete Details | For 24 months after termination or expiration, the franchisee and its owners (and their immediate family) may not operate a childcare business within a 15-mile radius of the former territory or within a 5-mile radius of any existing or planned Doodle Bugs! Children’s Learning Academy. They also cannot solicit or divert customers, vendors, or employees of the franchisor or other franchisees, or disclose trade secrets. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or an approved Principal Owner with at least 25% ownership interest if an entity) must devote full time and effort to actively managing the Center, spending at least 35 hours per week on-site as the primary business manager. A qualified, fully trained Center Director (a different individual from the Principal Owner) must also provide at least 35 hours of on-site supervision and manage day-to-day operations. All employees must meet franchisor's minimum requirements and complete orientation and in-service training. |
| Required Suppliers | Franchisee must purchase from the franchisor or approved vendors all items used to start or operate the Center, including certain supplies bearing Doodle Bugs! logos (mugs, pens, mouse pads, shirts, brochures), an approved internet surveillance system, Pro Care Software, NEWare-Paradox Security Software, QuickBooks, Microsoft Office, and cloud-based subscription software. |
| Supply Restrictions | All items purchased from approved vendors must meet franchisor's specifications. Franchisee must purchase computer equipment and software that meet current minimum requirements and install/use upgrades and replacement software/hardware as required by the franchisor. |
| Franchisor Revenue from Suppliers | In the fiscal year ending December 31, 2021, revenue from the sale of supplies to franchisees was $4,018, or 3% of total revenue of $131,125. No revenue was collected from the optional Center Development Program in 2021. The franchisor does not currently receive payments from designated suppliers for franchisee purchases, but may do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee promissory notes, mortgages, leases, or other obligations of the franchisee. |
Doodle Bugs! Children's Learning Academy Franchise Earnings — Item 19
Doodle Bugs! Children's Learning Academy 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.
Doodle Bugs! Children's Learning Academy 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.
Doodle Bugs! Children's Learning Academy System Growth
Doodle Bugs! Children's Learning Academy currently operates 1 franchised locations and 16 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 1 | 14 |
| 2020 | 2 | 0 | 16 |
| 2021 | 1 | 0 | 17 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by SBFR Partners LLP for year ending December 31.
Doodle Bugs! Children's Learning Academy Franchise — FAQ
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