Stemtree Franchise Review 2026: Ratings & Verdict

Product details

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Stemtree fits first-time franchise buyers looking for an emerging child services concept.

✓ Strengths

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$91K - $195K

Franchise fee (Item 5)

$45K

Royalty (Item 6)

8% + 2% ad

Item 19 median rev

$178k all franchised units systemwide

System size (Item 20)

16 +8

Years in business

11+ yrs

Model Stemtree's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 8% + ad fund 2% on gross sales.

PROJECTED ANNUAL SALES$180,000

$100k$2M

Royalty (8%)

—

Ad fund (2%)

—

Total / year

—

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

17

Total units open

8

Units opened last year

8

Units closed last year

+4

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

3

Strengths identified

4

Questions to ask

Industry Benchmarks

How Stemtree ranks against 143 Child Services & Education peers we've analyzed.

Initial investment

36th pct · of 143 peers

Franchise fee

39th pct · of 143 peers

System size

40th pct · of 143 peers

Child Services & Education industry averages

Avg investment

$385K - $1.1M

Avg franchise fee

$46K

Avg system size

93

Franchises analyzed

143

How Stemtree stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Stemtree Disclosed $45K $91K - $195K 8% 16
M14 HoopsSimilar price Disclosed $50K $105K - $195K 8% 13
Kumon North AmericaBiggest system None $2K $102K - $234K — 1,705
Uatp ManagementTop-rated in category Disclosed $100K $2.9M - $5.4M 7% 202

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Stemtree franchise cost?

Stemtree requires a $44,500 initial franchise fee and a total initial investment range of $90,700–$195,300, per the most recent FDD on file.

Who owns Stemtree?

Stemtree franchises are sold by Stemtree Franchising, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.

Does Stemtree disclose financial performance (Item 19)?

Yes. Stemtree discloses Item 19 financial performance representations with reported revenue around $177,705. See the financials sub-page for the full distribution.

What ongoing fees does Stemtree charge?

Franchisees pay a royalty of 8% and an advertising fund contribution of 2% of Gross Revenue on gross sales as defined in Item 6 of the FDD.

How many Stemtree locations are there?

As of their 2026 FDD, Stemtree has 16 total locations, with 8 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

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