Code Ninjas

The franchise fee for a Learning Center is $40,000 — flat for all new franchisees, with a 10% veteran discount bringing it to $36,000 for military owners with 51%+ equity. The Studio Center concept runs lower at $30,000 and targets a smaller footprint if you want a lower-capital entry point.

Total investment for a Learning Center lands between $174,750 and $298,250 — modest by education franchise standards. The major variable is construction ($50K–$110K) and furniture/fixtures ($25K–$35K). Computer hardware and software adds another $10K–$20K, reflecting the tech-heavy curriculum delivery model. Grand opening marketing is required at $8K–$12K. Working capital covers three months at $20K–$30K, which is on the lower end — factor in a longer ramp if you're in a new market.

The ongoing fee burden is steep. The royalty is 8% of net sales for Learning Centers — one of the highest in the education category, where 6–7% is typical. Studio Centers pay an even heavier 12%. The marketing contribution is 2.25% on top, bringing the combined floor to 10.25% before the $350/month technology fee (which can rise 10% annually). That technology fee escalator is worth watching — it's currently $4,200/year but has no hard ceiling beyond the annual cap.

The non-compliance fee is punishing: $500 per week for every week a default goes uncured. If you fall behind on operational standards during a rough patch, fees compound quickly. The renewal fee is reasonable at $3,500 — one of the lower renewal costs in this report.

Code Ninjas confirms it makes financial performance representations in Item 19 of the FDD, covering both Learning Centers and Studio Centers. However, the specific revenue tables were not captured during data extraction — the prep file contained only disclaimer boilerplate, not the actual figures.

From the system context, Code Ninjas Learning Centers are after-school and weekend coding programs for ages 5–14, running on a belt-based curriculum progression model. Pricing typically runs $200–$400/month per enrolled student, with most centers targeting 50–150 active members. At 100 students paying $300/month, gross revenue would be approximately $360K/year — but this is an estimate, not a disclosed figure.

Before signing, request the full Item 19 tables directly from the franchisor and speak with a minimum of 10 existing franchisees at varied tenure levels. The revenue ceiling is real but so is the operating-cost base in a dedicated retail space.

The system trajectory is a serious concern. Code Ninjas peaked at approximately 289 units in 2022 and has declined to 244 by end of 2024 — a net loss of 45 locations in two years. The 2024 numbers are particularly stark: 18 openings versus 41 closures and terminations, a net loss of 25 units in a single year. That's a closure rate of roughly 15% of the system annually.

The company maintains 5 company-owned locations, which is typical for a brand using corporate units for training and concept development. But the franchisee-owned system is clearly contracting, not growing. Buyers should ask the franchisor directly what is driving the closures — whether it's a specific cohort of locations (pandemic-era openings, certain geographies) or a systemic model problem — and request the list of closed franchisees to contact directly.

The declining system is the primary flag. In a contracting franchise network, marketing fund contributions deliver less return (fewer co-branded touchpoints), territory quality may be compromised as failed units return territory, and resale values for your own unit may be impaired.

The 8% royalty for Learning Centers is above average for an education franchise. Combined with the 2.25% marketing contribution and monthly technology fees, your gross fee burden approaches 10.5% of revenue before any local advertising spend. At typical education franchise revenue levels, this leaves less margin to service initial investment debt.

The attendance requirement at the annual convention ($750/person, with both the controlling interest holder and Designated Principal required) adds a predictable but often overlooked cost. Multi-unit development agreements require a $40,000 development fee up front ($20,000 per additional unit after the first) — appropriate if you're planning a portfolio, but lock-in you need to understand before committing.

Finally, the missing Item 19 data in public prep files means you're flying partially blind on validated earnings. Insist on the full FDD and speak with franchisees.