Is 4CATS ARTS STUDIO a Great Franchise Opportunity?
Is 4Cats Arts Studio a great franchise opportunity? Is it possible to get a strong return on a $100,000+ investment in a 4Cats Arts Studio?
4Cats Arts Studio franchise looks like a fun and fulfilling business to run.
Currently, the 4Cats website lists 71 locations in Canada, 4 in the U.S., and 1 in Australia.
4Cats Arts Studio franchisees run art studios for children ages 2-15 . According to 4Cats Arts Studio marketing, kids get to work in a variety of mediums, taking inspiration from the works of famous artists.
According to the 4Cats Studio website, “we are incredibly organized and because of our size, have great purchasing power which means the best prices [for franchisees] possible.”
Included in the cost of a franchise is a 7 year franchise licensing agreement (with option to renew after seven years) ans “start-up and ongoing training and support from Head Office personnel who live and breathe 4Cats!”
According to the 4Cats website:
“4Cats training program is designed to be user friendly, extensive and ongoing. We prepare you to successfully and confidently operate your studio.
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“You will be trained on all aspects of the studio curriculum, studio set up, art history training, curator training and the big picture of managing and marketing the entire business. The program is a combination of extensive online videos, skype video conference demonstrations, slide shows and pdf’s. Training includes the added benefit of attending hands on studio training in a certified training studio.
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“We are commited to making in-store operations as efficient as possible for franchisees…
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“Our incredible training program prepares you for running your location. Successful studios are located in both large cities and small communities.
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“Simple online step by step process that guides you through the opening of the business and training program.
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Extensive support developing a community & marketing plan.
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Extensive location selection support &approval
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Extensive and ongoing training & support.
4Cats Arts Studio Franchise Investment: Approximately $71,900 – $103,000
The initial and ongoing investment required for a 4Cats Arts Studio franchise is not insignificant.
According to the 4Cats Arts Studio Franchise Disclosure Document 2011 (FDD), the initial franchise fee is $40,000.
The total initial investment (including franchise fee) ranges between $71,900 – $103,000.
Ongoing costs include a continuing franchise fee of 10% of gross sales (paid monthly), an advertising and promotional fund of 3% of gross sales and a software fee of $35 – $170 per month.
Additional ongoing costs include purchase of required materials from 4Cats corporate ($1000 – $3500 per month), 1% of gross sales on local marketing, and $1000 for renovation/redecorating every 6-8 months.
[Left, 4Cats logo. Source: 4Cats.com website]
According to the FDD, 4Cats franchise owners have to pay a “proportionate share” of the franchisor’s costs for the Annual Meeting.
The franchisor derives income franchisee required purchases and can use vendor rebates on franchisee purchases to “benefit the system.”
Some franchisees are maintaining that the high cost structure makes it virtually impossible to achieve profitability.
Read and comment on that issue here: 4CATS ARTS STUDIO Franchise Complaints
Also see: 4Cats Arts Studio Franchise Disclosure Document 2011 (California)
ALSO READ: FRANCHISE DISCUSSIONS by Company
ARE YOU A 4CATS ARTS STUDIO FRANCHISE OWNER OR THE FRANCHISOR?
IS THE 4CATS FRANCHISE A GREAT OPPORTUNITY?
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TAGS: 4Cats franchise, 4Cats Arts Studio franchise, 4Cats Arts Studio franchise opportunity, 4Cats Arts Studio franchise complaints, children’s franchise, art franchise opportunity, franchise complaints, Joey Simon, Darryl Simon, unhappy franchisee
I enquired about purchasing a 4Cats franchise in 2011 – I was not shown the disclosure document you have on your website. Instead the Franchisor (Joey Simon) and I had numerous Skype conversations in which she purportedly showed me numerous cash flow statements of other studios confirming revenues of over $15K monthly. I asked numerous questions, from her sparse answers I should have realized that it was her way or the highway; however I was always reassured that they “knew how to operate an art studio”.
After tremendous pressure from Joey, I signed my agreement as is – there was no negotiation permitted.
I tried to speak with other franchise owners about the business, first I was scolded by Joey for not contacting the “preapproved” owners; those owners gave me glowing reviews however I was only allowed to ask certain questions as provided by Joey. The other owners seemed timid.
I realized the franchise was relatively new – only beginning to franchise 3 years earlier – I figured this was a good time to get in and hopefully open a couple of locations.
I quickly realized a young franchisor was a problem, standard changed almost daily; building was a nightmare costing me upwards of $10K to fix their design errors. The revenues I was told and almost promised didn’t come. Joey and her employees kept telling me I was doing something wrong – it was my fault. Shame, guilt and overwhelming financial burdens were very heavy on me and my family.
A few months after opening I learned about a group being formed of other franchisees who also suffered the manipulative attacks by Joey and her employees. After spending a few evenings of listening to heart wrenching stories I realized I wasn’t alone and I had made a huge financial and emotional error purchasing the franchise.
As stated by numerous other franchise owners in recent weeks, 4Cats is a predatory system designed and operated by 4CE to extract all of the available profits from the operation of the System in favour of the franchisor and leave nothing for the franchisees.
There have been over 20 closures in the past 3 years due to serious financial failure; however 4Cats has been able to continuously sell new locations now at about 75 in Canada, US, Mexico and Australia. Those studios faring well as 4Cats will say, are friends/family or previous employees of 4Cats that have a “special” franchise agreement with reduced royalties, reduced marketing fees and reduced cost for materials. I do know that one of those former employees running numerous studios in the Vancouver has a large debt to 4Cats as they financed her purchases; she is terrified of them calling her loan and closing her down as they have done to others. 4Cats strategy to instill fear and manipulation on their franchisees.
12 studios are in arbitration against 4Cats for misrepresentation and other allegations collectively demanding more than $4 million in compensation.
I would like to remain anonymous as 4Cats will impose difficulty on my already suffering business.
If anyone is looking to purchase a 4Cats – I would tell them to do it yourself and reap the rewards of your hard work and effort – I wouldn’t recommend anyone buy a 4Cats franchise!
Judging by the description above, by Anonymous, the only person they could be referring to is myself, Jessica Devenport.
“I do know that one of those former employees running numerous studios in the Vancouver has a large debt to 4Cats as they financed her purchases; she is terrified of them calling her loan and closing her down as they have done to others. 4Cats strategy to instill fear and manipulation on their franchisees.”
I am the owner of three 4Cats Arts Studios in the Vancouver area. If this is the case, what they have stated is untrue. My studios are successful. I am content with this franchise and I do know owe a large amount to the Franchisor. I just want this statement to be corrected. Thanks :)
BUYER BEWARE!
If you have been considering purchasing a 4Cats Arts Studio and have been given Jessica Devenport’s phone number to call in order to conduct your initial “due-diligence”– BEWARE!!
Jessica, also known as “Jess the Mess”, is essentially a 4Cats Headquarters employee and has been “cherry picked” by franchisor, Joey Simon. Jessica provides falsified financial information to potential buyers in order to sell franchises for the company, which is part and parcel to the inherent problems that exist within the system.
Jess the Mess receives numerous “kick backs”, including, but not limited to, reduced royalty fees from the franchisor for her role in selling franchises. If her studios are “successful”, and I stress IF, then it is only because she receives deals and treatment from franchisor that no other franchisees receive.
Hey Jessica, when is the last time you have had an inspection by the franchisor and subsequently told that you are required to spend thousands of dollars on purchasing supplies from 4Cats store in order to get your studio up to ‘standards’?? What’s that…?? NEVER!… that’s what I thought!
Does anyone have Joey and Darryl Simon’s direct email addresses? Could you email them to UnhappyFranchisee[at]gmail.com? I want to make sure they know our policy of offering them a chance to answer, correct, clarify or rebut allegations and/or otherwise join the conversation.
If the franchisor is reading this, please know that we prefer to have both sides of an issue represented so that our readers can consider both and make up their own minds. Feel free to email us at UnhappyFranchisee[at]gmail.com.
PS Please try to refrain from name-calling or personal attacks, both to keep the conversation professional and to preserve your own credibility. Thanks! ADMIN
This is ridiculous. 4 cats is an amazing organization. You people make me sick. Get a life. I worked for these people and they are hard working honest entrepreneurs. 4 cats is a great opportunity for anyone.
I would love to get a life, however the franchisor has taken all of my money and continues to do so every month, leaving me in financial ruin … Clearly you have never owned a 4cats franchise.
I assure you, the Colin who posted above IS NOT ME, lol, as if!
Will the REAL Colin please stand up, please stand up…. lol!
Hmmm, interesting, looks like we may have a Simon family/friend insider posing as our fellow franchisee who left his business taking a loss on investment. A story we all know unfortunately too well.
I can assure you “Colin” , 4Cats is definitely not a great business investment unless you are looking for an opportunity to work endless days being constantly berated and bullied by the franchisor saying, “your are not working hard enough” & you “are the worst franchisee in the entire system” all while positioning yourself for bankruptcy as money bleeds out of your growing business back to franchisor.
The 4Cats franchisor’s are the furthest from honest entrepreneurs — sadly they have taken a solid business concept and destroyed it by creating a corrupt business model where only the franchisor wins financially.
Will the REAL Colin please stand up, please stand up…. lol!
Hmmm, interesting, looks like we may have a Simon family/friend insider posing as our fellow franchisee who left his business taking a loss on investment. A story we all know unfortunately too well.
I can assure you “Colin” , 4Cats is definitely not a great business investment unless you are looking for an opportunity to work endless days and evenings being constantly berated and bullied by the franchisor saying, “you’re not working hard enough” all while positioning yourself for bankruptcy as money bleeds out of your growing business back to franchisor.
The 4Cats franchisor’s are the furthest from honest entrepreneurs — sadly they have taken a solid business concept and destroyed it by creating a corrupt business model where only the franchisor wins financially.
You are all bitter small minded people. Those who fail have nobody to blame but themselves.
Try working and actual putting in some effort. Haha wow why am I wasting my time talking to the likes of you. Go bad mouth someone that deserves it.
I know this is an old link, but I actually looked into purchasing a 4cats franchise a few years back. I had previous business management experience and knew what to look for and what questions to ask. The information provided by Joey was definitely misleading. She provided financials that were “profitable” but when you broke the whole thing down, there was 0 cash left over to go to the franchisee – everything was going to Joey and 4CE. When I addressed this concern, she got extremely defensive and was not willing to provide further information or continue discussions. Thank god for my background (and my spidey senses – when a franchisor gets the way she did, there’s something hiding) or I too could have been in deep financial troubles.
Thanks for the confirmation regarding shady business practices! This is valuable information!
I am thinking of opening a four cats. Does t require a special license?
I am a current owner. It is very rewarding work and I have been profitable, even in this recession! I think this could be the case of owners looking to blame someone for their lack of success. Home Office has given me the tools and knowledge and support to grow my business. I am currently looking to expand my location as we are too busy for the small space we have!
I am thankful Joey and the Home Office team continue to research, explore, develop and try new possibilities for us.
The franchise has changed. This is true. These changes were implemented by HO to adapt to a changing market. Very few franchisees accepted the changes and guess what!? They didn’t grow.
This page is a biased soap box for all the franchisees who didn’t make an effort.
To I am a real owner, I am profitable even in this Recession. What Recession in 2017. This sounds like some bull coming from 4Cats owners. I seen a bunch of these Franchise in my area and over the last 3 years I have seen them go under or try to dump their business off to some one else. All I have to say is take your hard earn money and run as fast as you can.