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Business Description

KSF is a Texas limited liability company formed in April 2016. We operate under the name Kidcreate Studio Franchising, LLC and Kidcreate Studio. Our principal business address is 7918 Mitchell Road, Eden Prairie, Minnesota 55344. We offer franchises (“Kidcreate Studio Franchise(s)” or “Franchise(s)”) for Kidcreate Studio Businesses, and have done so since May 2016. We do not conduct business under any other name or in any other line of business, and we do not offer franchises in any other line of business. We do not conduct, and have never conducted, a business of the type described in this Franchise Disclosure Document. Our agent for service of process in Minnesota is Lara Olson, 7918 Mitchell Road, Eden Prairie, Minnesota 55344. Our agents for service of process for other states are identified by state in Exhibit A. If a state is not listed, we have not appointed an agent for service of process in that state in connection with the requirements of franchise laws. There may be states in addition to those listed above in which we have appointed an agent for service of process. There may also be additional agents appointed in some of the states listed.

Prior Experience

We do not have any parent entities or predecessors required to be included in this Item. Our affiliate, Kidcreate Studio, LLC (“KCS, LLC”), with a principal business address of 7918 Mitchell Road, Eden Prairie, Minnesota 55344, may sell certain products, supplies, and inventory to franchisees. KSC, LLC does not offer franchises in any line of business and does not operate any businesses of the type to be operated by franchisees. Our affiliate, Lara Schinke-Olson, Inc., (“LSO”), with a principal business address of 9375 Cold Stream Lane, Eden Prairie, Minnesota 55347, owns the trademarks for the Kidcreate Studio Franchise system and licenses them to us. LSO also operates two businesses of the type to be operated by franchisees and has done so since 2007. KSC, LLC and LSO do not offer franchises in any line of business.

Business Offered

Kidcreate Studio franchisees operate children's art studios that focus on art education for kids from ages 18 months through 12 years. Kidcreate Studio Businesses offer in-studio art classes, camps, art-themed birthday parties, and retail items. Kidcreate Studio Businesses also offer off-premises services (“On-the-Go”) and form partnerships within the community to bring the Kidcreate curriculum and teachers to community education departments, parks and recreation departments, preschools, daycares, and other locations. Kidcreate Businesses operate under our system (“System”) using Kidcreate trademarks, service marks, trade names, and logos (“Marks”) from an approved retail location (“Studio”). The System focuses on creating a fun, self-esteem building atmosphere where children learn to express themselves through the visual arts. Classes and parties teach children about art concepts and techniques while exposing them to many different kinds of art media. The art curriculum provided by Kidcreate Studio Businesses varies from activities such as sensory art experiences, pottery classes, drawing and painting lessons, along with messy time play, masters, and art history. We offer four different Franchise packages depending on the number of Kidcreate Studio Businesses you wish to purchase. The “Single Franchise” package consists of the purchase of a single Kidcreate Studio location. The “Standard 3” Franchise package consists of the purchase of up to three Kidcreate Studio locations. The “Standard 5” Franchise package consists of the purchase of up to five Kidcreate Studio locations. The “Standard 10” Franchise package consists of the purchase of up to ten Kidcreate Studio locations. A “Standard Franchise” package means either the Standard 3 Franchise package, the Standard 5 Franchise package, or the Standard 10 Franchise package. You must operate your Kidcreate Studio Franchise per our standard business operating practices and sign our standard Franchise Agreement. If you are opening additional Kidcreate Studio Businesses under a Standard Franchise package, you will need to sign a “Kidcreate Studio Rider” for each location. Our current form of Kidcreate Studio Rider is attached to the Franchise Agreement as Attachment E. You may operate one Kidcreate Studio Business when you sign a Franchise Agreement and you may operate additional Kidcreate Studio Businesses for each Kidcreate Studio Rider you sign in conjunction with the Franchise Agreement. When purchasing multiple franchises, you may be required to sign Franchise Agreements with Riders that may be different from the form of Rider in this Franchise Disclosure Document. Your Kidcreate Studio Business must offer only those services and products that we have authorized. We reserve the right to add, modify, or delete any services or products that you must offer or sell at your Kidcreate Studio Business at any time at our sole discretion.

Initial Fees

If you purchase a Standard Franchise package, you will sign the “Multi-Franchise Addendum,” the form of which is attached to this Franchise Disclosure Document in Exhibit H. There is no development territory or development schedule to open additional Kidcreate Studio Businesses. You will sign a Franchise Agreement for your first Kidcreate Studio Business and you will be required to sign a Kidcreate Studio Rider for each additional Kidcreate Studio Business that you open under a Standard Franchise. You must pay us the full Initial Franchise Fee when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we provide to allow you to open your Kidcreate Studio Business and also offsets some of our franchisee recruitment expenses. Our standard Kidcreate Studio Franchise includes a protected territory (“Territory”) that, as a general rule, contains between 35,000 and 45,000 households. The Initial Franchise Fee is uniform, earned by us when paid, and is not refundable.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease, or other obligation

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchise and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. As of December 31, 2018 we had two affiliate-owned Kidcreate Studio locations (“Affiliate Locations”) and five franchised Kidcreate Studio locations (“Franchise Locations”). The financial information provided in the following tables represents the actual, historical performance of the Affiliate Locations and Franchise Location for the dates listed below. The numbers have not been audited, but we have no reason to doubt their accuracy.