iCODE

## Executive Summary

iCode is a leading educational franchise specializing in computer science and coding education for children and teens. Founded in 2015, iCode has quickly established itself as a leader in STEM education, offering a unique blend of coding skills and creative problem-solving techniques. The franchise achieved landmark recognition by ranking #1 in Education and #111 overall on the Financial Times list of Fastest Growing Companies in North and South America, highlighting its rapid growth and innovative approach.

## Investment Overview

| Category | Amount | |----------|--------| | **Franchise Fee** | $35,000 | | **Total Initial Investment** | $298,425 - $427,425 | | **iCode Reach Program** | $79,425 - $167,425 | | **Liquid Capital Required** | $100,000 | | **Net Worth Requirement** | $250,000 | | **Royalty Fee** | 6% of gross revenue | | **Marketing Fee** | 2% of gross revenue | | **Contract Term** | 10 years |

### Two Program Options

**iCode School (Full Center - $298K-$427K)** - Dedicated brick-and-mortar location - Classroom technology and equipment - Curriculum materials included - Walk-in traffic and visibility

**iCode Reach (Mobile Program - $79K-$167K)** - No fixed school location required - Deliver classes at schools, STEM centers, churches, libraries - Lower investment entry point - Protected territory without facility overhead

## Financial Performance

Based on available data:

| Metric | Performance | |--------|-------------| | **Reported Gross Revenue** | $432,322 | | **Industry Comparison** | Sub-sector average $624,329 | | **Operating Units** | 46 |

The revenue trails sub-sector average, which may reflect the systems relative youth since 2015 establishment.

## Training and Support

iCode provides comprehensive franchisee training:

- **Initial Training:** Complete coding and business operations - **Technology Platform:** Access to proprietary curriculum - **Marketing Support:** National and local marketing guidance - **Ongoing Support:** Continuous operational coaching - **Curriculum Updates:** Regular technology and coding updates

## Network Statistics

- **Year Founded:** 2015 - **Total Operating Units:** 46 - **Geographic Presence:** United States - **Recognition:** #1 Education, #111 overall (Financial Times Fastest Growing) - **Contract Length:** 10-year initial term with 10-year renewal

## Market Position

iCode presents an accessible entry into childrens education:

- **Investment Range:** $298K-$427K (below sub-sector average of $440K-$1M) - **Lower Barrier:** Attractive for first-time franchisees - **Growth Market:** STEM education demand continues rising - **iCode Reach Option:** $79K-$167K provides even lower entry

## Competitive Analysis

### Strengths - #1 Financial Times Education ranking validates growth trajectory - iCode Reach provides low-investment alternative ($79K-$167K) - Below sub-sector average investment requirements - Strong focus on coding and computer science skills - 8% combined royalty/marketing is competitive - 10-year contracts provide operational stability - Growing demand for coding education

### Weaknesses - Revenue ($432K) below sub-sector average ($624K) - Younger franchise system (since 2015) - 46 units is moderate network size - Competition from online coding platforms - Technology curriculum requires constant updates - Dependent on instructor quality

### Key Competitors - Code Ninjas (larger network, similar model) - The Coder School (coding-focused) - Stemtree (broader STEM focus) - Engineering for Kids (STEM enrichment) - Online platforms (Codecademy, Khan Academy)

## Risk Factors

1. **Younger System:** Franchising since 2015, still proving scalability 2. **Below-Average Revenue:** $432K vs. $624K sub-sector average 3. **Technology Evolution:** Coding curriculum requires constant updates 4. **Online Competition:** Free and low-cost coding platforms exist 5. **Instructor Expertise:** Need qualified coding teachers 6. **Market Saturation:** Coding education space becoming crowded

## Investment Recommendation

**Rating: SOLID OPPORTUNITY WITH GROWTH RECOGNITION**

iCode offers a compelling opportunity backed by Financial Times recognition as the #1 fastest-growing education company. The dual-model approach (full center vs. iCode Reach) provides flexibility for different investment levels and risk tolerances.

The below-average revenue performance warrants attention, though this may reflect the systems youth and growth phase. The iCode Reach program ($79K-$167K) is particularly attractive for lower-risk entry.

**Ideal Candidate Profile:** - Passion for technology and coding education - $100K+ liquid capital available - Net worth of $250K+ - Decision between full center vs. Reach model - Background in technology or education helpful - Strong community connections for Reach model - Comfortable with younger franchise system

**Due Diligence Recommendations:** 1. Compare iCode School vs. iCode Reach economics 2. Interview franchisees about revenue achievement 3. Understand technology curriculum update processes 4. Assess local competition from coding programs 5. Evaluate instructor recruitment in your market 6. Review complete FDD with franchise attorney