The art school industry essentially includes institutions that offer classes or programs in the visual arts. However, this industry excludes academic institutions that offer diplomas or degrees in this realm — these services are primarily focused on enrichment. Furthermore, commercial photography and graphic design are not included in this industry because they fall under the trade and technical skills category. The purpose of these programs is to encourage the development of creativity and innovation in children during the most formative stages of their life. This is a relatively niche industry, with only a few nationwide establishments and most operators are based locally. The target clientele of this industry are upper middle class to wealthy families, who can afford to send their children to these types of enrichment programs.
In general, rising interest in early childhood education thanks to studies that have revealed their benefit to childhood development has led to significant growth in the industry. However, the COVID-19 pandemic and government mandated non-essential business shutdowns have led many operations within this industry to close their doors. Some have transitioned to online platforms and have survived this way, but participation in these types of programs have declined either way. As academics become increasingly competitive and more parents seek prestigious higher education for their children, it is likely that this industry will remain a strong contender.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
For every 12 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 11,769
Out of all the childrens programs, the art programs industry was impacted the most heavily by COVID because demand for art enrichment is already less than that of STEM or sports, so lower demand overall meant that this industry was affected twice as much. Even though in the past five years, rises in household spending and disposable income led to slight expansion in the industry (at an annualized rate of 1.1%) temporary government mandated closures have left many establishments struggling to survive. While sister sub industries were able to shift to virtual platforms or outside settings to mitigate the spread, this proved to be particularly challenging for art and music programs as much of their teaching needed to take place indoors and in-person. However, as the economy reopened and non-essential businesses were able to open back up, institutions within this industry were able to resume their practice, even if it was limited.
Average Children’s Programs Franchise Industry Percentage Fees
Standard Children’s Programs Franchise Industry Investment
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 65 franchise concept investment breakdowns in order to calculate this figure.
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
For every 14 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Franchise Businesses taken into account: 2,411
Learn more about the Children Programs Industry
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