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Education & Tutoring

Code Ninjas Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$174,750 – $298,250

Franchise Fee

$40,000

Royalty Rate

8.0%

Initial Investment Range

Low: $174,750 High: $298,250

The total initial investment to open a Code Ninjas franchise ranges from $174,750 to $298,250, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.

Midpoint estimate: $236,500

Franchise Fee

$40,000

One-time initial fee

The Code Ninjas franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Code Ninjas brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

8.0%

of gross revenue

Ad/Marketing Fund

2.25%

of gross revenue

Total Ongoing Fee Burden: 10.2% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Learning Center Royalty Fee 8.0 PCT Due at the time of transaction. Net Sales includes all revenue from sale of Services and Products and all other income related to the Learning Center, excluding sales taxes and refunds.
Studio Center Royalty Fee 12.0 PCT Due at the time of transaction for Studio Center format.
Marketing Contribution 2.25 PCT Contributions are contributed to the Brand Marketing Development Fund. See Item 11 for local marketing spend obligation.
Technology Fee 350.0 FIXED Covers administrative costs of technology services and licenses. Franchisor has right to increase annually by 10%. Additional fees to third party technology vendors may apply.
Supplier/Vendor or Supplies Approval N/A VARIABLE Only due if franchisee proposes a new supplier or vendor not previously approved. Includes cost of inspection of supplier's facilities and/or test of supplier's samples, plus reasonable related expenses.
Product and Equipment Purchases N/A VARIABLE Charged for products and equipment franchisee purchases from or through franchisor. Due on delivery or as agreed.
Additional and Repeat Initial Training 750.0 FIXED Only due if franchisee wishes to send additional individuals to initial training program beyond those required, or if staff must complete replacement training.
Ongoing/Remedial Training 750.0 VARIABLE Currently $500-$1,000 per day per trainer, plus reasonable related expenses. Only due if franchisor requires franchisee to repeat training programs or attend additional ongoing training.
Convention Fee 750.0 FIXED Current annual convention fee is $750 per attendee (early bird pricing). Franchisor reserves right to increase. Controlling interest holder and Designated Principal must attend. Franchisee responsible for travel, room and board, and employee expenses.
Inspection or Audit N/A VARIABLE Includes travel, lodging, wages expenses, and reasonable accounting and legal costs. Due if franchisee did not timely provide sales reports, understated sales by 2% or more, or did not maintain/provide access to records.
Interest 1.5 PCT Only due if franchisee does not make proper payment on time. Interest accrues from when payment was initially due. Will not exceed maximum rate under state law if applicable.
Renewal Fee 3500.0 FIXED Due on signing of Renewal Agreement instead of a new initial franchise fee.
Controlling Ownership Interest Transfer Fee 5000.0 FIXED Only due if franchisee proposes a transfer. For transfer on disability or death, no fee charged but franchisee must reimburse reasonable out-of-pocket expenses.
Management Fee 275.0 FIXED Payable if franchisor takes over temporary operation of Learning Center on death or incapacity of Designated Principal. Covers cost of Center Director wages, travel and room and board only.
Non-Controlling Ownership Interest Transfer Fee 2500.0 FIXED Due for transfers of Non-Controlling Ownership Interests and transfers to franchisee's wholly owned entity.
Relocation Fee 5000.0 FIXED Only due if franchisee proposes to relocate franchise. $5,000 plus reasonable expenses.
Cost of Enforcement or Defense and Damages N/A VARIABLE Includes reasonable accounting and attorneys' fees. Due if: (i) franchisee in default and franchisor enforces/terminates agreement; (ii) franchisor successfully defends claims; or (iii) franchisor incurs costs in franchisee's defense (except where caused solely by franchisor's gross negligence or willful misconduct).
Insurance N/A VARIABLE Only due if franchisee fails to purchase required business insurance and franchisor exercises right to buy insurance (not obligated to do so).
Indemnification N/A VARIABLE Only due if indemnification clause is invoked. Franchisee must defend suits at own cost and hold franchisor harmless against suits involving damages from franchisee's operation.
Administrative Fee - Insufficient Funds 100.0 FIXED Charged if franchisee does not maintain proper and sufficient balance in ACH account to pay all fees due.
Administrative Fee - Cure of Default 10.0 PCT If franchisor takes any action to cure franchisee's default, franchisee must pay administrative fee in addition to reimbursements.
Reimbursements N/A VARIABLE Franchisee must pay franchisor any amounts franchisor has paid, become obligated to pay, and/or chooses to pay on franchisee's behalf.
Non-Compliance Fee 500.0 FIXED Franchisor may charge this fee if franchisee is in default of the Franchise Agreement.
Liquidated Damages N/A VARIABLE Payable if franchisor terminates Franchise Agreement based on franchisee's default. Calculated as: (a) average of monthly Royalty Fees and Marketing Contributions for 24 months before termination notice (or fewer if operated less than 24 months); (b) multiplied by lesser of 24 or months remaining in current term.

What You Get

Category

Education & Tutoring

Franchise Score

43

out of 100

Code Ninjas is an after-school and summer camp coding education franchise that teaches programming and computer science skills to children. The company offers game-based coding curriculum delivered through hands-on instruction in a fun, engaging environment.

Financial Performance (Item 19)

Mean Revenue

$106,256

per year, per location

Unit Growth & Failure Rate

Avg. Annual Closure Rate

3.2%

Moderate risk — near industry average

Net Unit Growth

-283 units

From 2022 to 2025

Unit Activity History

Year Start Opened Closed Transfers End
2022 283 +24 -19 284
2023 284 +14 -5 262
2024 262 +18 -8 239
2025 +43

Is a Code Ninjas Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Code Ninjas franchise opportunity:

Overall Score

43/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Medium

3.2% annual closure rate

Code Ninjas shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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