How to Finance a Code Ninjas Franchise: Kids Coding Dojo Costs
By Chris Cornella
A Code Ninjas franchise loan funds a kids coding center, which the brand calls a dojo, where children learn programming by building games. The investment is modest compared with many retail franchises, but most of it goes into build-out, technology and the early months of enrollment growth, and that shapes how lenders look at the deal.
This article covers the costs disclosed by the franchisor, the financial qualifications it lists, how the brand’s SBA Franchise Directory listing works and how to put together a financing package for a new or existing dojo.
US Professional Funding is not affiliated with, sponsored by or endorsed by Code Ninjas; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchising materials can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Code Ninjas Franchise Loan at a Glance
- Initial franchise fee: $45,000, according to the Item 7 summary on Code Ninjas’ franchise website.
- Estimated initial investment: $174,250 to $265,750, which the franchisor attributes to Item 7 of its FDD.
- Minimum liquidity: $75,000, described as a qualification guideline.
- Minimum net worth: $350,000, also a qualification guideline.
- Typical dojo: 1,200 to 1,800 square feet in a neighborhood or community retail strip center.
- Territory: typically a 1.5 to 2.5 mile radius.
- System size: more than 350 dojos around the world, according to the franchisor.
- SBA Franchise Directory: listed as “Code Ninjas” (code S2157), with a note about the lease rider when real estate secures the loan.
What Is Code Ninjas?
Code Ninjas was founded in 2016 in Pearland, Texas, by David Graham, a software developer and entrepreneur. The first franchise location opened in 2017 in Missouri City, Texas, and the company says its 50th location opened in San Diego, California, in 2018. It expanded into Canada in 2019 and the United Kingdom in 2021, and in 2023 it launched IMPACT, its proprietary learning platform.
The concept. Code Ninjas serves kids ages 5 to 14. Its core CREATE program, for ages 8 to 14, has students build video games and debug code while progressing through 9 belt levels, from white to black. JR serves ages 5 to 7 with hands-on activities that require no reading. The brand also lists CAMPS, an AI Academy and a Robotics Academy. Learning happens in the dojo, where only enrolled students and trained instructors, called Senseis, are allowed, and centers hold up to 30 students at a time.
How dojos earn revenue. Families typically enroll in recurring programs, and the franchisor says rates are set by the locally owned centers. Camps, academies and other programs add revenue, especially during school breaks. Centers are open after school on weekdays, and some add weekend hours.
Why lenders view Code Ninjas the way they do. Lenders see a recurring-revenue education business with a modest footprint and an investment that is small by franchise standards. They also see a business that depends on building enrollment from zero in a new market, staffing the dojo with Senseis and keeping families enrolled. The owner’s local marketing plan and working capital cushion matter as much as the build-out budget.
Code Ninjas Franchise Costs
Initial franchise fee. The franchise website lists a $45,000 initial franchise fee. Item 5 of the FDD explains when it is due and any multi-unit or territory pricing.
Real estate and build-out. Dojos are leased spaces, typically 1,200 to 1,800 square feet in a neighborhood or community retail strip center. The Item 7 summary shows $50,000 to $90,000 for construction and $1,500 to $5,000 for architect fees.
Equipment and technology. A coding center’s equipment is mostly computers, furniture and display. The summary lists $10,000 to $20,000 for computer hardware and software, $20,000 to $30,000 for furniture, fixtures and equipment, and $6,000 to $12,000 for signage.
Opening costs and working capital. Grand opening marketing of $8,000 to $10,000 helps fill the first classes, and $20,000 to $30,000 of additional funds covers early operating needs.
Total investment. The franchise website attributes these line items to Item 7 of the Code Ninjas FDD:
- Initial franchise fee: $45,000
- New franchisee training fee: $750
- Initial training expenses: $1,500
- Lease: $7,000 to $10,000
- Utility deposit: $250 to $500
- Architect fees: $1,500 to $5,000
- Construction costs: $50,000 to $90,000
- Business licenses and permits: $250 to $1,000
- Business insurance: $1,000 to $2,500
- Initial inventory: $2,500 to $5,000
- Computer hardware and software: $10,000 to $20,000
- Furniture, fixtures and equipment: $20,000 to $30,000
- Signage: $6,000 to $12,000
- Grand opening marketing: $8,000 to $10,000
- Professional fees: $500 to $2,500
- Additional funds: $20,000 to $30,000
- Total: $174,250 to $265,750
The franchise site does not state the FDD’s issue year and tells candidates to verify current figures with the FDD, so confirm every line, and the period the additional funds are meant to cover, in the document you receive.
Ongoing Fees and How They Affect Your Loan
The franchise website does not publish the royalty rate or other ongoing fees. Item 6 of the FDD lists them, including the royalty, the contribution to the national marketing fund the franchisor describes, and any technology or platform fees connected to the IMPACT learning platform.
Why it matters. Fees calculated on revenue come off the top before rent, Sensei payroll and loan payments. Fixed monthly fees matter even more in the early months, when enrollment is still building and revenue is low.
How lenders factor these costs in. For a Code Ninjas franchise loan, lenders build a month-by-month projection that starts with enrollment, applies tuition, subtracts franchise fees, rent and payroll, and checks what remains for debt service. They will want to see how many enrolled students the dojo needs to cover its fixed costs, and how long it may take to get there.
Franchisor Requirements for New Owners
Code Ninjas lists these qualification guidelines on its franchise website, and notes that candidates should confirm current requirements with the franchise development team:
- Minimum liquidity: $75,000.
- Minimum net worth: $350,000.
- Background: no tech, education or kids’ programming background is required.
- Skills: the franchisor looks for strong leadership and management skills and excellent communication and interpersonal abilities.
The approval process. The franchisor describes five steps: an initial call with a franchise development representative, an application, mutual due diligence including review of the FDD and conversations with current franchisees, a Discovery Day at the home office, and review and signing of the franchise agreement. The franchisor says most owners open within 4 to 6 months of signing.
What lenders take from these numbers. The liquidity guideline is the cash a Code Ninjas franchise loan request will usually be built around. Lenders want to see the equity injection come from those funds, with reserves left over.
Ways to Own a Code Ninjas
A new dojo. Most owners open a new location in their territory. Lenders underwrite a start-up on the owner’s credit, liquidity and plan rather than history. Learn how we approach educational center start-up financing.
Buying an existing dojo. The franchisor says immediate purchase opportunities are available in the U.S. An existing dojo comes with enrolled families, trained Senseis and financial history, which lenders can underwrite directly. See our educational center acquisition financing options.
Multiple units or territories. Code Ninjas says multi-unit and territory opportunities are available in select markets.
Financing Options for a Code Ninjas Franchise
SBA 7(a) loans. Because Code Ninjas is on the SBA Franchise Directory, an SBA 7(a) loan is often the first option buyers explore. A 7(a) loan can combine the franchise fee, build-out, computers, furniture and working capital in one package, which suits a start-up with mostly intangible and leasehold costs. The franchisor’s site notes that financing is available through independent lenders and is not provided by Code Ninjas.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived fixed assets. Because dojos are usually leased strip-center spaces, 504 rarely fits a Code Ninjas project unless an owner buys a building.
Conventional term loans. Owners with strong credit and collateral, or existing operators adding a unit, may use a conventional business loan.
Equipment financing. Student computers, monitors, robotics kits, furniture and signage can be financed or leased separately. Technology refreshes are a recurring need in a coding business, so a separate equipment line can keep upgrades from draining cash. See our franchise equipment financing and leasing options.
Working capital and lines of credit. Enrollment in kids’ programs tends to move with the school calendar, and camp revenue arrives in bursts. A line of credit can smooth those swings. Explore educational center working capital options.
Seller financing on resales. When buying an existing dojo, a seller may agree to carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules may limit how it can be structured. Read more about seller financing in educational business acquisitions.
SBA Loans for Code Ninjas Franchisees
SBA lenders generally require a franchise brand to be on the SBA Franchise Directory before they can make an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it means the brand’s franchise documents have been reviewed for eligibility.
The directory listing. Code Ninjas is listed as “Code Ninjas” under code S2157, so SBA 7(a) and SBA 504 loans are available to qualified franchisees, subject to normal underwriting.
What the directory note means. The listing says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Rider may not be executed. In plain English, the lease rider is paperwork meant for franchisees who rent their space. If an owner buys the property and pledges it as collateral for the SBA loan, there is no lease for the rider to cover, so it should not be signed. Since most dojos are leased, this note will rarely come up.
Program limits and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change, and a single dojo project falls well within it. Bring an Item 7 sources-and-uses table, a lease or letter of intent, enrollment-based projections, your personal financial statement and tax returns. Our guide to SBA loans for educational businesses covers more, and our SBA loan calculator gives rough payment estimates for planning only.
How Lenders Evaluate a Code Ninjas Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. The franchisor’s guidelines of $75,000 in liquidity and $350,000 in net worth are a starting point. Lenders want to see the equity injection plus reserves after closing.
Industry and management experience. No tech or education background is required by the franchisor, but lenders still want evidence that you can manage people, sell to families and run a budget. Management, sales or customer service leadership experience helps.
Business plan and projections. A strong plan models enrollment by month, tuition based on your local rate plan, camp revenue around school breaks, Sensei staffing ratios and the cost of local marketing. Show the break-even student count and a realistic ramp-up.
The FDD and franchise agreement. Lenders review the term, renewal and transfer provisions, territory rights, Item 6 fees and Item 10 financing disclosures. Item 19 shows whether the FDD includes financial performance representations. Our guide to reading an FDD for financing explains what lenders focus on.
Site and lease. Lenders look at the lease term relative to the loan, rent, the tenant improvement allowance and the site’s access to families with school-age children.
Historical financials for resales. For an existing dojo, expect to provide profit and loss statements, tax returns and enrollment reports, including retention trends.
Inside the Dojo: Technology and Staffing
A Code Ninjas center runs on computers, a learning platform and Senseis. The Item 7 summary shows that technology, furniture and build-out make up a large share of the hard costs, while the franchise fee and working capital make up much of the rest.
Technology. Student workstations and robotics or AI program materials need periodic updates, so ask what upgrades the agreement may require.
Staffing. Senseis guide students one-on-one, and a dojo that holds up to 30 students at a time needs enough staff on the floor during peak after-school hours. Payroll is usually the largest operating cost, and lenders will check that your staffing plan matches enrollment.
Multi-Unit Growth and Development Agreements
Code Ninjas offers multi-unit and territory opportunities in select markets. Owners who commit to more than one dojo typically sign a development agreement with an opening schedule; check the FDD for its fees and deadlines.
Financing a second dojo. Once the first dojo has steady enrollment and a track record, lenders can underwrite its cash flow to support the next one. Our article on multi-unit franchise financing explains how lenders view a growing group.
Code Ninjas Franchise Loan Scenarios
A career changer opening a first dojo. A former corporate manager with no coding background meets the liquidity and net worth guidelines, signs a strip-center lease near several elementary schools and uses an SBA 7(a) loan for the build-out, computers, franchise fee and working capital.
A buyer acquiring an established dojo. A parent who has watched a local dojo grow buys it from the original owner. The lender underwrites the dojo’s financial statements and enrollment history, and the seller carries a small subordinate note.
An owner adding a second territory. An owner with a stable first dojo opens a second in a nearby suburb, financing it with a new loan supported by the first unit’s cash flow and separate equipment financing for computers.
Common Mistakes to Avoid
- Underestimating how long it takes to build enrollment from zero
- Leaving too little working capital for slower months between school terms
- Ignoring technology refresh costs in the long-term budget
- Choosing a site without enough families with school-age children nearby
- Building projections without the exact Item 6 fees from the current FDD
- Expanding to a second dojo before the first is stable
For more, read the educational business loan mistakes that cost owners the most.
Next Steps to Finance Your Code Ninjas Franchise
Step 1: Confirm your qualifications. Compare your liquidity and net worth with the franchisor’s guidelines.
Step 2: Complete the discovery process. Take the initial call, apply, review the FDD, speak with current franchisees and attend Discovery Day.
Step 3: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 4: Talk with a financing specialist. Learn how an SBA or conventional loan would be sized for your dojo before committing to a site.
Step 5: Secure a site and build projections. Choose a location with the franchisor, negotiate the lease and model enrollment month by month.
Step 6: Apply, close and open. Submit your loan package, close, complete build-out and training, and launch grand opening marketing with reserves in place.
Code Ninjas Franchise Loan FAQs
How much does it cost to open a Code Ninjas franchise?
The franchisor’s website cites an estimated initial investment of $174,250 to $265,750 from Item 7 of its FDD, including the $45,000 franchise fee. Confirm the figures in the current FDD.
What is the Code Ninjas franchise fee?
The initial franchise fee is $45,000, according to the Item 7 summary on the franchise website.
What royalty does Code Ninjas charge?
The franchise website does not publish the royalty rate. Item 6 of the current FDD lists the royalty, marketing fund contribution and other ongoing fees.
How much liquid capital and net worth do I need?
Code Ninjas lists a minimum of $75,000 in liquidity and $350,000 in net worth as qualification guidelines, and notes that requirements should be confirmed with its franchise development team.
Can I get an SBA loan for a Code Ninjas?
Yes, if you qualify. Code Ninjas is listed on the SBA Franchise Directory under code S2157, so SBA 7(a) and SBA 504 financing are available, subject to underwriting.
Do I need a coding or teaching background?
No. The franchisor says no tech, education or kids’ programming background is required. Lenders will still look for management and leadership experience.
Can I finance the computers and equipment separately?
Yes. Computers, furniture and signage can often be financed or leased separately from the main loan, which can preserve cash for working capital.
Can I buy an existing Code Ninjas?
Yes. The franchisor says immediate purchase opportunities are available. Lenders can underwrite an existing dojo’s actual financial and enrollment history, and the franchisor must approve the transfer.
Does Code Ninjas offer financing?
The franchise website says financing is available through independent lenders and is not provided by Code Ninjas. Review Item 10 of the FDD for any franchisor financing disclosures.
How long does it take to open?
The franchisor says most owners open within 4 to 6 months of signing. Build your loan timeline around lease negotiation, construction and training.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations. The franchisor states that its investment figures are not an earnings claim.
Final Thoughts
A Code Ninjas franchise loan finances a small-footprint education business whose success depends on enrollment, staffing and local marketing. With an SBA Franchise Directory listing, published Item 7 figures and clear qualification guidelines, buyers can build a well-documented loan request, as long as they budget conservatively for the time it takes to fill the dojo.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and educational services financing solutions.
