Code Ninjas Franchise Cost, Profit & Failure Rate 2024

Technology is growing at a rapid rate, and everything around us is changing, including our jobs.

One of the prevalent things that we always come across is coding and software, which takes a big place in the tech industry.

Code  Ninjas Franchise

Since there is a lot of need for coding skills, it is always profitable to do something related to coding in your business.

Code Ninjas aims just that, teaching kids about coding by teaching them important coding and soft skills.

They are one of the world’s largest kids coding franchises, operating in hundreds of locations across different countries.

If you are looking to own a Code Ninjas franchise to expand your franchise or get started with the tech industry, you are in the right place.

We will talk about Code Ninjas’ franchise details and how they work.


About Code Ninja Franchise

Code Ninjas is a US-based educational organization aiming to teach children coding with headquarters in Texas.

They provide a unique learning environment that enables them to learn how to code through an engaging and immersive curriculum.

Code Ninjas centers offer a fun and welcoming environment where children can learn about coding, robotics, and problem-solving through game-building, app development, and other interactive activities.

They are the largest children coding franchise in the world, with over 350 locations and operations on different continents.

Code Ninjas also offers summer camps for a more intensive learning environment for kids. These camps can also focus on non-coding topics in addition to the coding curriculum.


Code Ninjas History

Code Ninjas was founded in 2016 by a software engineer named David Graham.

Graham was inspired to start the company after noticing a high job placement rate among his students in his coding camps for adults.

They started as a company to teach children to code from a very early age with a fun curriculum.

Because they didn’t have many competitors and they had a different method of teaching coding, they quickly grew.

A year after being founded, Graham turned the business into a franchise. This allowed Code Ninjas to grow faster and open more locations.

Since then, Code Ninjas has experienced exponential growth and has received numerous awards and recognition for its innovative approach to STEM education. They now have over 350 outlets across several countries.


Code Ninjas Franchise Model

Cost Or FeesAmount
Initial Investment       $130,300-$348,550
FranchiseYES
Franchising Since2017
Franchise-Fee$35,000
Royalty-Fee6.5% or $500
Liquidity$100,000
Estimated Outlets391

How Much Does It Cost To Open A Code Ninjas Franchise?

How Much Does It Cost To Open A Code Ninjas Franchise

To open a Code Ninjas franchise, you can expect to make a total investment of somewhere between $130,300 and $348,550.

This fee includes the initial franchise fee of $35,000 and all the other operational costs.

Training expenses, insurance, additional funds, and all other costs are counted in this initial investment.

The numbers depend mostly on what kind of business licenses you need, how much improvement you need in the building, and whether you’ll lease or buy the property.

The size of the franchise branch and the number of employees will also affect your initial investment.

If you are opening a branch bigger than the average, you might expect to spend even higher than the expected numbers.


Code Ninjas Franchise Requirements

Code Ninjas look for two types of requirements for the ideal franchisee candidates. The first one is financial, and the other is the professional background requirement.

For financial requirements, the ideal candidate must possess a net worth of $350,000 and liquidity of $100,000.

For the professional side, you must showcase that you have strong leadership and management skills.

This could happen through experience in management roles in your professional carrier.

Having a background in the education or technology sector is beneficial for you to get approved but not a necessity. 


Code Ninjas Profit & Revenue

The last report from 2020 shows that Code Ninjas had a total revenue of $7.5 million for the fiscal year 2020. $3.1 million of this revenue came from their franchises as part of their franchise network.

However, their net income numbers are not even close to the total revenue they had because they had a net profit of $83,096 for 2020.

Code Ninjas doesn’t disclose any individual retail branch’s financial situation.

That’s why we don’t have an official number as to how much a Code Ninjas store makes. But judging by their financial numbers, they had $1.7 million from royalty income.

Combining the franchise locations indicates that there was a total income of $27 million because the royalty fee is 6.5%.

These numbers are from 2020, and the company had 194 stores at the time.

When we divide this number, we get about $140,000 in annual revenue on average per Code Ninjas franchise store. 

If we assume a profit margin of 15% then we can calculate that a Code Ninjas franchise owner make $21,000 in net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%140000.00
Rent10.63%(14875.00)
Insurance5.31%(7437.50)
Salaries21.25%(29750.00)
Franchise Royalty Fees5.31%(7437.50)
Utilities2.13%(2975.00)
Cost of Goods Sold (COGS)26.56%(37187.50)
Labor (Variable)13.81%(19337.50)
Total (Expenses)85.00%(119000.00)
Net Profit15.00%21000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Failure Rate Of Code Ninjas

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201971187+116
2020187236+49
2021236275+39

For the Franchised outlets:

  • In 2019, the growth rate was (116)/71×100≈163.38%
  • In 2020, the growth rate was (49)/187×100≈26.20%
  • In 2021, the growth rate was (39)/236×100≈16.52%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201912+1
202024+2
202146+2

For the Company-Owned outlets:

  • In 2019, the growth rate was (1)/1×100≈100%
  • In 2020, the growth rate was (2)/2×100≈100%
  • In 2021, the growth rate was (2)/4×100≈50%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201972189+123
2020189240+51
2021240281+41

For Total outlets:

  • In 2019, the growth rate was (123)/72×100≈170.83%
  • In 2020, the growth rate was (51)/189×100≈26.98%
  • In 2021, the growth rate was (41)/240×100≈17.08%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Code Ninjas grew from 2019 to 2021, showing a growth rate between 163.38% and 16.52%. On the other hand, for company-owned outlets, the growth rate of Code Ninjas was also quite high, lying in the range between 100% and 50% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Code Ninjas franchise has expanded in the years 2019-2021 showing a total growth rate between 170.83% and 17.08%.


Payback Period Of Code Ninjas

With a total investment of $348,550 and a yearly profit of $21,000, we can calculate the payback period of Code Ninjas

So, to find out how long it will take to earn back the initial investment:

Payback Period = Total Investment / Yearly Profit = $348,550 / $21,000 = 16.5 years

Based on these figures, it will take approximately 16-17 years to pay back the initial investment for Code Ninjas. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Code Ninjas Franchise Training and Support

Code Ninjas Franchise Training and Support

They provide support both before opening your store and after you open your store as part of their ongoing support procedures.

Code Ninjas have dedicated professional teams ready to help you. This help includes the selection of your location, pre-sales, marketing materials, and other necessary resources.

They have comprehensive marketing support to help you to build your brand locally with their marketing team.

Code Ninjas also provide training both for the management and for the employees of your franchise branch.

Their professional teachers give you one-on-one help, mentor, and guide you for the perfect education for the children.

These professionals stay with you as long as you need to answer any of your questions and perfect the operations of your branch.


Code Ninjas Franchise Terms of Agreement and Renewal

The initial term of the agreement for any Code Ninjas franchise is for ten years.

Once you sign this initial agreement, you will get to own the rights to a Code Ninjas franchise branch for ten years unless you breach the contract.

At the end of the agreement, you will have the option to renew if the franchisor is satisfied with you.

The term for the renewal is not stated publicly. You can only learn it through their FDD, which happens when you get approved for it.

The franchisor has the option to reject your renewal if they don’t see you fit for their franchise or if you breach your initial contract.


Code Ninjas Franchise Obligations and Restrictions

The franchisee who owns the branch must actively participate in the business’s daily operations. This participation doesn’t necessarily have to be full-time. It can also be part-time or run as a side business.

That means whoever buys the franchise and has the majority steak as the owner must accept that they will spend at least 40 hours a week running the branch themselves.

In addition to this, you also are not allowed to use the area of the branch for any other purpose than to run a Code Ninjas franchise.

The area that you show as the territory of your branch is reserved only for a Code Ninjas franchise and no other business or operations.


Code Ninjas Franchise Financial Assistance

Code Ninjas doesn’t directly offer financial assistance to prospective franchisees.

However, they have relationships with third-party sources to help the franchisees to fund the necessary costs.

These costs include startup fees, equipment, inventory, and employee-related costs.

Third-party sources provide these funds in the method of a loan with certain interest rates.

This means that the franchisee who uses these third-party sources will agree to take the financial assistance as a loan to pay it back in time. There are no other types of financial assistance.

The education franchise market offers several opportunities for entrepreneurs, such as franchises from  Kumon franchiseMathnasiumKiddie AcademyKidzee Franchise and Legal Academy Franchise..


Code Ninjas Comparison

CompanyFranchise FeeRoyalty FeeInitial Investment
The Coder School$29,9505%$75,250-$150,650
STEMTree$39,5008%$83,800-$149,800
Coded Ninjas$35,0006.5%$130,300-$348,550

Conclusion

Code Ninjas offers an innovative way to teach kids about coding and give them an advantage in the job market.

They are the biggest kids coding franchise in the world, with over 350 stores in different countries.

You can expect to spend between $130,300 and $348,550 to open a Code Ninjas franchise, including the franchise fee of $35,000.

They offer extensive training and support for their franchisees, and they will be there after the opening of your store, as well.

They require you to have a background in leadership and a certain amount of liquidity and net worth to be approved as a franchisee.

They are overall a great business if you are looking to own a franchise because each store makes approximately $140,000 annually in net profit.


FAQ

Who is the CEO of Code Ninjas?

Justin Nihiser is the current CEO of Code Ninjas. He has been working in this spot since August 2020.

Can anyone have a Code Ninjas Franchise?

If you satisfy the financial and professional requirements listed by the franchisor, you can get approved.

If you don’t fulfill these requirements, you can’t. This means that not everyone can have a Code Ninjas franchise.

How much do I need to open a Code Ninjas franchise?

On average, you need to make a total investment between $130,300 and $348,550.

This number varies on a variety of factors such as size, location, number of employees, and other operational costs.

Who founded Code Ninjas?

Code Ninjas was founded by David Graham, a programmer, entrepreneur, and father of two, based in Houston, Texas.

Where is the headquarters of Code Ninjas?

The headquarters of Code Ninjas is located in Pearland, Texas.

How many locations does Code Ninjas has?

Code Ninjas is operating in over 400 locations in three countries.

Who owns Code Ninjas?

The largest coding franchise system for kids, Code Ninjas, is owned by Eagle Merchant Partners.

Sources

https://www.codeninjas.com/about

https://connect.codeninjas.com/franchising/franchise-owning-a-franchise

https://connect.codeninjas.com/franchising/franchise-faq

https://connect.codeninjas.com/franchising/franchise-about

https://en.wikipedia.org/wiki/Code_Ninja

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