Stemtree

Item 7 details Stemtree's initial investment range of $90,700-$195,300, including a $44,500 franchise fee, making it accessible compared to broader education franchises but still substantial for a service model. Ongoing fees include an 8% royalty (minimum $325 monthly), 2% brand/ad fund contribution, and a $110 monthly IT fee, totaling around 10% plus fixed costs that could pressure slim-margin locations. Crucially, Item 19 discloses average gross revenues of $189,464 and median of $170,922 across 16 franchise locations, figures that reflect steady but not explosive performance in after-school and camp programs—no net profit data means investors must factor 20-30% expenses typical for tutoring centers, potentially yielding $40K-$60K owner earnings at median levels.

System health metrics from Items 19 and 20 paint a growing yet maturing picture: 12 locations in 2023 jumped to 15 in 2024 (+25% growth), now 16 total franchises plus 1 corporate, with 9 projected new units signaling momentum. However, 4 non-renewals highlight retention risks in a small system, possibly tied to local market saturation or operational hurdles. SBA data shines with 10 loans averaging $182,340, easing financing for qualified buyers, but the modest unit count tempers scalability dreams—ideal for educators with $100K-$200K capital seeking niche impact over mega-chains.