About Stem Builders Learning Center Franchise
STEM Builders Learning Center is an education franchise providing science, technology, engineering, and math (STEM) enrichment programs for elementary and middle school students in grades K through 9.
The brand offers a range of services including math tutoring, science labs, robotics, coding classes, seasonal camps, scouts badge programs, and birthday parties, all centered on hands on learning.
Backed by STEM Builders, Inc.
Stem Builders Learning Center Franchise Cost & Fees
Minimum Investment
$73K
Average Investment
$91K
Maximum Investment
$109K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000.00 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenues but not less than $500 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues but not less than $100 per month | National brand fund |
| Total Investment Range | $73,100 – $109,000 | Includes build-out, inventory, working capital |
The investment range of $73K–$109K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenues but not less than $500 per month) and marketing fee (2% of Gross Revenues but not less than $100 per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $15,000 | $25,000 |
| Rent (one month) | $3,000 | $4,000 |
| Lease Security Deposit | $3,000 | $4,000 |
| Utilities | $200 | $300 |
| Leasehold Improvements | $3,000 | $5,000 |
| Market Introduction Program | $1,000 | $3,000 |
| Furniture, Fixtures, and Equipment | $5,000 | $7,000 |
| Computer Systems | $3,000 | $5,000 |
| Insurance (3 months) | $300 | $500 |
| Signage | $2,000 | $4,000 |
| Inventory | $5,000 | $6,000 |
| Licenses and Permits | $500 | $750 |
| Dues and Subscriptions | $100 | $200 |
| Professional Fees (lawyer, accountant, etc.) | $500 | $1,000 |
| Travel, lodging and meals for initial training. | $2,000 | $4,000 |
| Additional funds (for first 3 months) | $30,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 (or $500 if transferring to a controlled entity) |
| Renewal Fee | $5,000 |
| Technology Fee | $30 to $100 plus $1-2 per student per month |
| Audit Fee | 1.5% per month interest on amount of underpayment plus the amount of the underpayment (or cost of audit if 3% or more under reporting) |
| Local & Cooperative Marketing | 5% of Gross Revenues but not less than $300 per month |
| Additional Training | Approximately $1000 per group training (up to 3 people) |
| Profits on supplies or equipment | Variable |
| Indemnification | Varies under circumstances of claim |
| Attorney’s Fees | Varies under circumstances |
| Management Fee | $500 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 33 classroom hours and 21 on-the-job hours |
| Classroom Training | 33 |
| On-the-Job Training | 21 |
| Training Location | Plymouth, Minnesota (headquarters or via webinar) |
| Additional Training | We plan to provide additional on-going training for You and Your manager(s) and employees at Our usual charges. The Agreement does not obligate Us to provide such services, however. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | specific mutually agreed upon marketing area described by zip codes |
| Description | The Protected Territory is a specific mutually agreed upon marketing area described by zip codes. In designating the Territory, we take into account the demographics of the Territory, as well as the number of public and private schools and other factors related to the operation of a STEM BUILDERS business. We will not locate or open a competitive business under the Marks and using the System in Your Territory, either company-owned or franchised, during the term of the Agreement. You are permitted to operate the Franchised Business only at one location and only within Your Territory. There are no restrictions on where customers may come from. You may only engage in direct marketing within your Territory, except with our prior approval. We have the right to modify Your Territory upon renewal of the Franchise Agreement based on an increase in the population of over 20%, changes in the demographics of the Territory, or such other factors as we reasonably determine. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | another term |
| Renewal Fee | $5,000 |
| Renewal Conditions | Be in good standing with Us, sign new agreement, update or replace software/hardware, retain Premises, give 12 months’ notice and pay a fee of $5,000. |
| Transfer Fee | $10,000 (or $500 if transferring to a controlled entity) |
| Transfer Conditions | You must be current in all fees and not in material breach of the Agreement, have paid all business debts, new Franchisee signs release of claims, mutual termination and release, franchisor receives transfer fee ($10,000), new Franchisee signs then-current agreement, qualifies, completes initial training, obtains Premises lease rights, and franchisor has 30-day right of first refusal. Fee is $1000 for transfer to a controlled entity. |
| Termination for Cause | Franchisor may terminate for good cause, including failure to substantially comply with material requirements, bankruptcy, assignment for benefit of creditors, voluntary abandonment, conviction of violating law related to business, materially impairing goodwill, repeated defaults, fraud, misrepresentation, misuse of marks/confidential info, health/safety violations, in-term restrictive covenant violation, liens, insolvency, abandonment, insurance failure, government regulations non-compliance, government actions, anti-terrorist activities, underreporting Gross Revenues, or breach of other agreements. |
| Non-Compete Period | 24 months |
| Non-Compete Details | For 24 months from ending the franchise, You must not compete with Us within 50 miles of the boundaries of Your Territory, solicit or divert any of Our customers or vendors or customers or vendors of any other franchisee, disclose any trade secrets, or solicit or hire any of Our employees, former employees or franchisees. For 24 months, You will not be employed by or in business with any person or entity that does any of those things. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must either devote Your full time and effort to managing and operating the Licensed Business or delegate its management or operation to a responsible person. You must reserve and exercise ultimate authority and responsibility over operation and management of the Licensed Business. If You delegate management and operation to a manager, the manager must first successfully complete Our initial training program within sixty days after assuming the role of manager. If You are a corporation or other entity, each owner must personally guaranty the Agreement and the entity must designate a competent manager. We do not require the designated manager to be an equity owner of the franchised business. You must, at all times, employ at least one STEM Builder Trained Specialist (SBT). |
| Required Suppliers | You must purchase from Us or a supplier that We approve certain equipment, supplies and inventory necessary to start or operate the Licensed Business. All items used to start or operate Your business that contain or bear our Trademarks or Trademarks we are licensed to use must be purchased from Us or an approved vendor. This includes advertising and marketing materials, forms, promotional items, and signs. |
| Supply Restrictions | As to other equipment, supplies and inventory, You may purchase them from the vendor(s) of Your choice, but the item(s) must meet Our specifications. We issue specifications in writing and incorporate them in the Manual. These specifications include quality, accuracy, preparation, installation, application, delivery, performance, design and appearance. In some instances, You must purchase items that comply with Our reasonable subjective determination of whether they meet the standards and comport with the STEM BUILDERS LEARNING CENTER image. If We have not provided specifications, You may purchase any items that reasonably meet the requirements of the Licensed Business. |
| Franchisor Revenue from Suppliers | During our last fiscal year which ended on December 31, 2021, we received $24,097 based on required purchases or leases by franchisees made in accordance with Our specifications. That amount represented 99% of our total revenue of $24,242. During the fiscal year which ended on December 31, 2021, we received no rebates or other commissions from any vendor based on purchases or leases by franchisees. We anticipate that such rebates, discounts and allowances may range from zero percent to as high as fifteen percent of the amount of your purchase of certain items. |
Stem Builders Learning Center Franchise Earnings — Item 19
Stem Builders Learning Center does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Stem Builders Learning Center 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.
Stem Builders Learning Center Litigation & Risk Flags
Clean Litigation RecordStem Builders Learning Center has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Stem Builders Learning Center System Growth
Total Units
3
Franchised
3
Company-Owned
0
Stem Builders Learning Center currently operates 3 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 0 | 7 |
| 2020 | 0 | 3 | 4 |
| 2021 | 0 | 1 | 3 |
Transfers: 2 | Closures: 4
State Registrations
Registered in 14 states: CA, MN, WI, HI, IL, IN, MD, MI, NY, ND, RI, SD, VA, WA
Franchisor Financials (Item 21)
Revenue
$33K
Net Income
$-15,364
Total Assets
$62K
Audited by BAS Partners LLC for year ending December 31.
Stem Builders Learning Center Franchise — FAQ
The total investment to open a Stem Builders Learning Center franchise ranges from $73,100 to $109,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000.00. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Stem Builders Learning Center charges a royalty fee of 7% of Gross Revenues but not less than $500 per month of gross sales, plus a 2% of Gross Revenues but not less than $100 per month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Stem Builders Learning Center Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Stem Builders Learning Center to ensure you have the most up-to-date version.
Stem Builders Learning Center does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Stem Builders Learning Center has been franchising since 2018. The FDD shows an investment range of $73,100-$109,000, a 7% of Gross Revenues but not less than $500 per month royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000.00 and the total investment ranges from $73,100 to $109,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Stem Builders Learning Center and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Stem Builders Learning Center or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com