About Lil' Angels Franchise
Lil' Angels is a children's photography franchise that has been franchising since 1998, bringing professional portrait photography to daycare centers, preschools, and schools through a mobile business model.
The brand makes it easy for families to receive high quality portraits of their children without the hassle of scheduling a studio visit.
The franchise fee is $29,500.
Lil' Angels Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $29,500 | One-time payment upon signing |
| Royalty Fee | $0.55 per equivalent unit of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None | National brand fund |
| Total Investment Range | $41,263 – $45,780 | Includes build-out, inventory, working capital |
The investment range of $41K–$46K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($0.55 per equivalent unit) and marketing fee (None) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Background Clearance Fee (1) | $63 | $80 |
| Initial Franchise Fee (2) | $29,500 | $29,500 |
| Equipment and Supplies (3) | $10,000 | $10,000 |
| Travel and Living Expenses for You and Your Employees During Training (5) | $500 | $1,000 |
| Deposits and Licenses (6) | $100 | $500 |
| Miscellaneous Opening Costs (7) | $500 | $1,000 |
| Credit Card Machine (8) | $0 | $1,200 |
| Additional Funds – Initial Period (9) | $600 | $2,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,500 |
| Technology Fee | $10 per month |
| Photo Lab Processing Charges | $0.85 for each equivalent unit of every portrait package |
| Minimum Digital Fee | $3.50 for orders from digital files of five or less equivalent units |
| Shipping Fee | $10.80 for each order |
| Additional Owner Training | $500 per person |
| Quarterly Production Requirement | $5,000 each calendar quarter after your first year as a franchise owner |
| Minimum System Fee Payment – if not meet Quarterly Production Requirement | From $0.01 to $1,500 each quarter, depending upon your quarterly production |
| Fee for Shooting Outside your Territory | $5,000 (if no permission) |
| Penalty for Failure to Provide Adequate Management | $500 each month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6-7 days classroom, 2 days field training |
| Classroom Training | 24.5 hours |
| On-the-Job Training | 45 hours |
| Training Location | CPQ Colorchrome, Inc., 550 Industrial Drive SW, Cleveland, Tennessee 37311, or in the franchisee's territory for field training. |
| Additional Training | Additional, optional classes and programs are offered to assist with portrait styles, techniques, sales, management, and marketing. These classes are held at CPQ Colorchrome, Inc. facilities or other agreeable locations, with a charge of $500 per person. Travel, lodging, meals, and personal expenses for additional training are the franchisee's responsibility. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | average population of 300,000 or approximately 150 child care centers |
| Description | The limits of the territory are defined by highways, roads, and county boundaries. Franchisees operate from one location, usually their home, and require franchisor permission to relocate. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Conditions | To renew, franchisees must give written notice (180 days to 1 year prior), sign the then-current Franchise Agreement (which may have different terms), attend training, upgrade equipment and supplies to current requirements, and sign a general release. Franchisor's discretion to renew is not unreasonably withheld if conditions are met. |
| Transfer Fee | $2,500 |
| Transfer Conditions | Transferee must qualify, sign a new Franchise Agreement, pay the transfer fee, satisfy all debts owed to Lil’ Angels, sign a general release, deliver necessary documents, ensure equipment meets current standards, and attend/complete the New Owner Training Class and field-training program. |
| Termination for Cause | Franchisor may immediately terminate for reasons including failure to pay Minimum System Fee Payment within 30 days, abandonment of the franchise, criminal misconduct, seizure of business, loss of required licenses, failure to comply with federal/state/local law, failure to comply with safety or accountability policies, or misconduct related to a child. For other material breaches, the franchisor provides 30 days to cure the default. |
| Non-Compete Period | During the term of the franchise and for two years after termination or expiration. |
| Non-Compete Details | During the term, franchisees cannot own, maintain, engage in, or participate in any other competitive photography business, with exceptions for publicly traded securities (under 5% ownership). After termination or expiration, franchisees cannot divert clients or engage in a competitive photography business within 50 miles of any Lil' Angels territory for two years. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchise owners must retain and exercise management control over their business. While direct day-to-day operation is not required, it is recommended. If the franchisee does not reside in the territory, a manager or photographer living in the territory must operate the business. Any supervisor or photographer must successfully complete the initial training program. |
| Required Suppliers | Franchisees must use approved photo labs for processing images and certain approved vendors for purchasing equipment and supplies. The franchisor is an approved supplier for camera, equipment, props, costumes, and supplies. |
| Supply Restrictions | Franchisees must use specific equipment and supplies including Canon Professional Digital Camera with lens, Einstein Professional Lights, Camera Case, Tripod, Cargo Box, Tools, Backgrounds, Light Stands, Posing Table, Laptop Computer, and Costume Outfits. These items must meet franchisor specifications for type, model, make, color, and size. All images must be sent to franchisor-approved photo processing labs. |
| Franchisor Revenue from Suppliers | In 2021, the franchisor received $1,209,405 from photo processing charges and supplies, representing approximately 90% of total revenues. The franchisor paid $770,405 to approved photo processing labs and suppliers. The franchisor receives 10% from a frame supplier and a 2% management fee from photo processing labs, with the right to increase this fee to 25%. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing, nor does it guarantee notes, leases, or obligations. |
Lil' Angels Franchise Earnings — Item 19
Lil' Angels 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.
Lil' Angels 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.
Lil' Angels System Growth
Lil' Angels currently operates 43 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 3 | 53 |
| 2020 | 0 | 5 | 48 |
| 2021 | 0 | 3 | 45 |
Transfers: 2 | Closures: 11
State Registrations
Registered in 7 states: CA, IL, MI, MN, SD, VA, WA
Franchisor Financials (Item 21)
Audited by Hoods, CRM & Associates for year ending December 31.
Lil' Angels Franchise — FAQ
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