How to Finance an Honest Art Franchise: Kids Art Studio Startup
By Chris Cornella
An Honest Art franchise loan funds a children’s art studio from a young brand that began in Scarsdale, New York, in 2020 and grew into a brick-and-mortar studio in Ardsley. Because Honest Art does not publish its franchise fee, royalty or investment range on its consumer website, your loan request will be built from the Franchise Disclosure Document (FDD), the space you choose and your own financial picture.
This article covers what the company has said publicly, what its SBA Franchise Directory listing and real estate note mean for an Honest Art franchise loan, and how lenders view an early-stage enrichment brand.
US Professional Funding is not affiliated with, sponsored by or endorsed by Honest Art; the name is used only to describe the business. Figures in the franchisor’s disclosure document 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. Read the current FDD and franchise agreement with a franchise attorney and an accountant before you sign anything or borrow.
Honest Art Franchise Loan at a Glance
- Origin: began in Scarsdale, New York, in 2020, according to the company, and opened its first physical studio in Ardsley, New York, shortly afterward
- Founder: artist and head instructor Liza Cruz, who started the brand as a passion project that moved from virtual classes to a studio
- Concept: a studio for kids and adults offering classes, camps, private lessons and parties in painting, pottery, animation and other hands-on projects
- Franchise program: in October 2025 the company announced its first multi-unit franchise agreement for three studios in the New York metro area and said it is awarding franchises in select U.S. markets
- Franchise fee, royalty and investment: not published on the company’s consumer site; get them from Items 5, 6 and 7 of the current FDD
- Net worth and liquidity requirements: not published; ask the franchise development team
- SBA Franchise Directory: listed under code S8666, with a note about lease documents when real estate secures the loan
What Is Honest Art?
Honest Art describes itself as a bold, modern studio designed to help kids think big and create work they are proud of. Its mission, in the company’s words, is to raise the standard of art education for children and use art to support their emotional growth, while giving students room to have fun and think creatively.
The founder, Liza Cruz, is a New York artist who taught private lessons for years before launching the brand. Honest Art started online and then moved into a storefront studio on Saw Mill River Road in Ardsley, where it runs after-school classes, holiday and summer camps, birthday parties, group lessons and events for all ages and skill levels.
Why lenders see it as an emerging franchise. Honest Art’s franchise program is new. The company’s first announced multi-unit deal came in October 2025, which means there is little or no history of franchised studios for a lender to review. Lenders lean harder on the borrower, the location and the FDD’s support terms. Our article on financing an emerging franchise explains how that changes the underwriting conversation.
Honest Art Franchise Costs
The company has not posted a fee schedule or investment table on its public site, so treat the categories below as a checklist for reading Item 7 rather than as estimates.
Initial franchise fee. Item 5 of the FDD states the fee for a single studio and any fee structure for multi-unit or development agreements.
Real estate and build-out. An art studio is usually a leased retail or flex space. Build-out often includes sinks and plumbing for cleanup, durable flooring, ventilation, lighting suited to artwork, storage for supplies and finished projects, a party room and a check-in area for parents. A kiln for pottery classes may need dedicated electrical work and venting.
Equipment and furnishings. Expect child-sized tables, easels, drying racks, pottery wheels and a kiln, computers for animation classes, signage and a scheduling system.
Opening costs and working capital. Opening supplies, grand-opening marketing, insurance, deposits, training travel and wages before enrollment builds all need funding. Class rosters can take months to fill.
Total investment. Item 7 lists each line item as a low-to-high range plus additional funds for an initial operating period. Adjust it with real quotes from your market.
Line items to look for in Item 7:
- Initial franchise fee
- Leasehold improvements and studio build-out
- Kiln, pottery wheels, easels and other studio equipment
- Furniture, fixtures and signage
- Technology, scheduling software and point-of-sale
- Opening art supplies and inventory
- Grand-opening marketing
- Training-related travel and expenses
- Security deposits, licenses and insurance
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Item 6 discloses the royalty, any brand or marketing fund contribution, technology or software fees, a local marketing spending requirement, and transfer and renewal fees. These are paid off the top of revenue, before debt service.
How lenders factor these costs in. A lender projects revenue from classes, camps and parties, subtracts rent, payroll, supplies, royalty and marketing, and checks whether what remains covers loan payments with a cushion. Show how camps offset slower months.
Franchisor Requirements for New Owners
Honest Art has not published minimum net worth or liquid capital figures. Ask the franchise team for its criteria, and expect questions about your management experience and whether you will run the studio yourself.
The approval process. Expect an application, FDD delivery, calls with leadership and a franchise award. Lenders will want the franchise agreement and the franchisor’s site approval in the loan package.
Ways to Own an Honest Art
A new studio in a leased space. This is the most likely path. The loan covers the franchise fee, build-out, equipment and working capital, while the landlord’s tenant improvement allowance, if any, reduces what you need to borrow. Our page on educational center start-up financing covers this route.
Several studios under one agreement. The company’s first franchise deal covered three studios, so multi-unit agreements are part of its model. Lenders usually finance the first studio and want to see it perform before funding the next.
Buying an existing studio. Resales will be rare while the system is young. If one becomes available, the purchase is valued on its enrollment history and cash flow, and the franchisor must approve the transfer. See educational business acquisition loans for how buyers finance an existing location.
Financing Options for an Honest Art Franchise
SBA 7(a) loans. An SBA 7(a) loan can cover the franchise fee, leasehold improvements, equipment, supplies and working capital in one package. Because Honest Art is on the SBA Franchise Directory, qualified borrowers can use SBA-backed financing.
SBA 504 loans. If you buy the building that houses your studio, an SBA 504 loan can finance the real estate and long-lived improvements.
Conventional term loans. Borrowers with strong credit, collateral and liquidity may qualify for conventional business loans. A young brand may call for more equity or outside collateral.
Equipment financing. Kilns, pottery wheels, animation computers and furniture can be financed separately through franchise equipment financing and leasing, which preserves cash for working capital.
Working capital and lines of credit. A studio pays rent and instructors before enrollment fills, and it buys camp supplies ahead of summer. Working capital for educational businesses can smooth those gaps.
Seller financing on resales. If you buy an existing studio, the seller may carry a note for part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit how they are structured.
Franchisor financing. Item 10 of the FDD states whether Honest Art offers any direct or indirect financing. Check it before assuming any help with the franchise fee.
SBA Loans for Honest Art Franchisees
The SBA reviews franchise agreements for affiliation and control issues and lists brands that meet its standards on the SBA Franchise Directory. SBA lenders rely on that listing when financing a franchisee. A listing does not approve any borrower.
Honest Art is listed. The brand appears on the directory under code S8666. Give that code to your lender so it can confirm the listing and pull the right documents.
What the directory note means. The listing carries this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Conditional Assignment of Lease and Consent and Agreement of Landlord may not be executed. In plain English, those franchisor lease documents give the franchisor a path to take over a studio’s lease. If you own the property and pledge it as collateral for the SBA loan, there is no third-party lease to assign, so those documents should not be signed in that situation. If you lease, the note does not apply.
Program limits. The SBA 7(a) program maximum is currently $5 million, and program rules can change.
SBA application tips. Bring the FDD, franchise agreement, lease or letter of intent, quotes, a business plan with monthly enrollment assumptions, personal financial statements, tax returns and a résumé. Run payment scenarios with our SBA loan calculator before you settle on a loan amount.
How Lenders Evaluate an Honest Art Deal
Personal credit and financial history. Lenders look for a clean repayment record and explanations for any past problems.
Net worth and liquidity. You need cash for the equity injection and reserves after closing. With a young brand, extra liquidity can offset the lack of system history.
Industry and management experience. Experience in teaching, youth programs, camps or running a small retail business helps.
Business plan and projections. Build projections from class capacity, sessions per week, camp weeks and party bookings. Show how long it will take to fill classes and how summer and school-year schedules differ.
The FDD and franchise agreement. Lenders read Items 5 through 7, Item 10, Item 17 and whether Item 19 includes financial performance representations.
Site and lease. Visibility to families, parking for drop-off, proximity to schools and neighborhood demographics all matter. The lease term should cover the loan term or include renewal options.
Historical financials for resales. For an existing studio, lenders review tax returns and enrollment records.
Studio Equipment and Space Planning
Studio layout drives both cost and revenue. A party room lets you book weekend events without canceling classes. A pottery program brings a kiln, wheels and clay storage, which add electrical and ventilation work. Animation classes need computers or tablets and software licenses that may need replacement on a schedule.
Multi-Unit Growth and Development Agreements
Honest Art’s first announced franchise agreement covered three studios, which shows the company is open to multi-unit owners. A development agreement typically sets a schedule for opening each studio. Lenders usually finance one unit at a time, using the first studio’s results to support the second. Read our multi-unit franchise financing article before committing to a schedule.
Real-World Scenarios
A former teacher opening one studio. A teacher with classroom experience and modest savings uses an SBA 7(a) loan for the fee, build-out and working capital, and finances the kiln and furniture separately to keep cash on hand.
Partners signing for several studios. Two partners sign a multi-unit agreement, fund the first studio with an SBA loan and plan the second only after the first has a full year of enrollment data.
An owner who buys a small building. An owner pledges a purchased storefront as collateral. Because of the directory note, the franchisor’s lease assignment documents are not signed, and an SBA 504 loan funds the property.
Common Mistakes to Avoid
- Signing a lease before the franchisor approves the site and before a lender reviews it
- Assuming classes will fill in the first month and skipping working capital
- Forgetting kiln electrical and ventilation work in the build-out budget
- Ignoring the SBA directory note if you plan to own the real estate
- Committing to a development schedule your cash flow cannot support
For more pitfalls, read our list of educational business loan mistakes.
Next Steps to Finance Your Honest Art Franchise
Step 1: Contact the franchise team. Ask about open markets, candidate criteria and the timeline.
Step 2: Request the FDD. Focus on Items 5, 6, 7, 10, 17 and 19.
Step 3: Review it with advisors. Have a franchise attorney and an accountant explain your obligations and costs.
Step 4: Talk with a financing specialist. Share your finances early so you know your borrowing range before you pick a site.
Step 5: Find a space and get quotes. Collect a letter of intent, contractor bids and equipment quotes.
Step 6: Apply and close. Submit a complete package and coordinate closing with the franchise agreement and lease signing.
Honest Art Franchise Loan FAQs
How much does an Honest Art franchise cost?
The company does not publish its investment range on its consumer site. Item 7 of the current FDD gives the full estimate, including the franchise fee, build-out, equipment and opening funds.
What is the Honest Art franchise fee?
The fee is disclosed in Item 5 of the FDD. Ask whether multi-unit agreements carry a different fee structure.
What royalty does Honest Art charge?
Royalty and marketing fund contributions are listed in Item 6. Use those figures in your cash flow projections.
Can I get an SBA loan for an Honest Art studio?
Yes, if you qualify. The brand is listed on the SBA Franchise Directory under code S8666.
What does the SBA directory note mean?
If real estate where the studio sits secures the SBA loan, the franchisor’s conditional lease assignment and landlord consent documents may not be signed. It matters mainly to owners who buy their building.
How much liquid capital do I need?
Honest Art has not published a minimum. Lenders expect an equity injection plus reserves, so ask the franchisor.
Can a first-time business owner get an Honest Art franchise loan?
Yes, if your credit, liquidity and relevant experience are strong. Teaching or youth program management helps.
Can I open more than one studio?
The company’s first franchise deal covered three studios, so multi-unit ownership is possible. Lenders usually finance each studio in sequence.
Does Honest Art offer financing?
Check Item 10 of the FDD, which discloses any financing the franchisor offers.
How long is the franchise term?
The term, renewal and transfer conditions are in Item 17. Make sure the lease and loan terms line up with it.
Final Thoughts
Honest Art brings a founder-led studio concept and an SBA Franchise Directory listing to a franchise program that is just getting started. An Honest Art franchise loan will rest on your own finances, a well-chosen space and a realistic enrollment ramp, so get the FDD early and plan for working capital.
US Professional Funding helps franchise buyers compare SBA, conventional and equipment financing. Explore our franchise financing programs and our educational services financing to see how we support enrichment and learning businesses.
