How to Finance an iCode Franchise: STEM Center Startup Costs
By Chris Cornella
An iCode franchise loan funds a computer science and STEM learning center where students from kindergarten through 12th grade study coding, robotics, game design and related skills after school and during camps. The company has described a typical franchise fee of $35,000 and a total investment of $149,000 including working capital, figures it published in January 2021 that must be checked against the current disclosure document.
This article covers what drives the cost of an iCode center, how ongoing fees and the school-year calendar affect loan sizing, which financing tools fit, and how lenders review a youth education franchise before they fund it.
US Professional Funding is not affiliated with, sponsored by or endorsed by iCode; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant.
iCode Franchise Loan at a Glance
- Concept: computer science and STEM education center for students in kindergarten through 12th grade
- Typical franchise fee: $35,000, according to a January 2021 company announcement
- Total investment: $149,000 including working capital, according to the same January 2021 announcement; confirm the current range in Item 7 of the FDD
- Founded: 2015, by technology entrepreneur Abid Abedi
- Headquarters: Frisco, Texas
- Footprint: the company’s location directory lists centers in more than 20 states plus one in Canada
- Royalty, marketing fund, net worth and liquidity requirements: not published on the pages we could verify; confirm them in the FDD
- SBA Franchise Directory: listed as iCode under code S2012, with no special notes
What Is iCode?
iCode was founded in 2015 by Abid Abedi, a serial technology entrepreneur who serves as its CEO, and is headquartered in Frisco, Texas. The brand teaches computer science through proprietary curricula built around STEAM education, with topics that include programming languages, video game and web development, robotics, drone programming and digital arts.
The signature offering is the Belt Program, an after-school course that moves students through ranked belts in a way that resembles martial arts. Around it, centers run STEM camps during summer, spring break and school holidays, an advanced Youth Innovation Program aimed at college-bound students, Tech Clubs that bring the curriculum into schools, competitive gaming leagues and classroom rentals to outside groups.
The four-classroom format. The company describes each center as having four classrooms so that several programs can run at the same time. For a borrower, that layout matters: it raises the build-out budget compared with a single-room enrichment studio, but it also lets one location serve different age groups and programs in the same afternoon.
Why lenders look closely at the model. Revenue comes from recurring tuition, seasonal camps and school partnerships rather than one-time sales. Lenders like recurring enrollment, but they also know that youth education businesses ramp up slowly, depend on the school calendar and need strong local marketing. A loan request that shows how the center reaches enrollment targets is far more persuasive than one that leans on the brand alone.
iCode Franchise Costs
The figures below come from the company’s January 2021 announcement. Costs have likely changed since then, so treat them as a starting point and build your loan request from the current FDD and your actual site.
Initial franchise fee
The company described a typical franchise fee of $35,000. The fee is usually paid when you sign the franchise agreement, so plan your financing or cash for it before signing. Ask whether a reduced fee applies to additional territories.
Lease and build-out
A new center generally needs leased space that is convenient for families and nearby schools. Building four classrooms means interior walls, lighting, electrical capacity for many computers, network cabling, restrooms that meet code, a lobby where parents wait and branded signage. Tenant improvement allowances from the landlord can reduce what you need to borrow.
Technology and equipment
A coding center is equipment-intensive for its size. Expect student computers and monitors, servers or networking hardware, robotics and drone kits, gaming equipment for leagues, classroom furniture, projectors or displays and a front-desk system for enrollment and billing.
Opening costs and working capital
Pre-opening rent, instructor hiring and training, insurance, licenses, initial marketing and enrollment campaigns all come before tuition revenue builds. The company’s total figure included working capital, but lenders often want to see reserves beyond the FDD estimate to cover a slower ramp.
Item 7 lines to confirm
- Initial franchise fee
- Rent, security deposits and utility deposits
- Leasehold improvements for four classrooms
- Computers, robotics kits, networking and audio-visual equipment
- Furniture, fixtures and signage
- Training travel, licenses, permits and insurance
- Grand-opening and enrollment marketing
- Additional funds for the stated initial period
Check that the line items add up to the total you plan to finance and ask what size of space and market the estimate assumes. Our overview of educational center start-up financing explains how lenders treat a new learning center budget.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing fund. The pages we could verify do not publish iCode’s royalty or brand fund rates. Item 6 of the FDD lists every recurring fee, including how each is calculated and when it is due.
Technology and curriculum fees. Proprietary curriculum, learning platforms and enrollment software often carry their own fees in education franchises. Ask what technology fees apply and whether they rise as the system grows.
Equipment refresh. Computers and robotics kits do not last as long as a building lease. Ask the franchisor how often hardware must be updated, because replacement cycles become future financing needs.
How lenders factor fees in. Royalty, marketing contributions, rent, instructor payroll and technology costs all come out of tuition before the loan payment. An iCode franchise loan is sized on what remains, with a cushion for slower months between camp seasons.
Franchisor Requirements for New Owners
iCode’s own pages that we could verify do not list a minimum net worth or liquid capital requirement, so get those figures from the franchise development team and the FDD. The company has said it is seeking qualified franchise candidates across the United States.
A technology background is helpful but not the only path. One franchisee the company announced in Michigan brought a computer science degree and decades of software and project management experience. Lenders will look for a credible plan to hire and keep qualified instructors and a center director.
Franchise development processes typically include an inquiry, introductory calls, FDD review, territory selection and signing, followed by site selection, build-out and training. Ask the franchisor to walk you through its specific steps and timeline.
Ways to Own an iCode
A new center. Most owners open a new location. Lenders underwrite these deals on projections, the lease, the build-out budget and the owner’s liquidity and management plan.
Buying an existing center. When a franchised center changes hands, the buyer inherits an enrolled student base, staff and school partnerships. Transfer approval and the remaining term matter, and our page on educational center acquisition financing explains how lenders fund these purchases. Review how curriculum licenses move to a new owner in our article on education franchise curriculum license transfers.
Multiple territories. An owner who wants several centers usually finances the first one and uses its results to support the next.
Financing Options for an iCode Franchise
SBA 7(a) loans. Because iCode is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, leasehold improvements, technology and working capital in one loan for a qualified borrower.
Conventional term loans. Borrowers with strong liquidity or collateral may prefer a conventional business loan, which is structured outside SBA program rules.
Equipment financing. Computers, robotics and drone kits, gaming hardware and audio-visual systems can be financed separately through franchise equipment financing and leasing, which can match payments to the useful life of the hardware.
Working capital and lines of credit. Summer camps bring a burst of revenue, while the start of the school year requires marketing spending before the Belt Program fills. A line of credit can smooth those swings. See our educational center working capital options.
Seller financing on resales. When buying an existing center, a seller may carry part of the price. A seller note is typically subordinate to the senior lender, and loan programs may limit how it can be structured.
SBA Loans for iCode Franchisees
The SBA reviews franchise agreements and lists eligible brands on the SBA Franchise Directory. SBA lenders generally need a brand to appear there before making an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower.
iCode’s directory listing. iCode appears on the directory under code S2012 with no special notes. In plain terms, the franchise agreement has been reviewed and no extra brand-specific conditions are flagged, so the lender can focus on the borrower, the site and the project.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. An iCode center sits far below that ceiling. Read more about SBA loans for educational businesses, and use our SBA loan calculator for early planning estimates, which are not an offer or approval.
Application tips. Bring the current FDD, the franchise agreement, a lease proposal, contractor bids, equipment quotes and a business plan with enrollment assumptions by program.
How Lenders Evaluate an iCode Deal
Personal credit and financial history. Expect a review of credit reports, personal tax returns and a personal financial statement, along with a personal guarantee.
Net worth and liquidity. Lenders look for enough cash to cover the equity injection and reserves after closing.
Management experience. Education, technology, sales or people management experience strengthens the request, especially with a plan for hiring instructors.
Business plan and projections. Model enrollment in the Belt Program, camp attendance by season, school club contracts and classroom rental income separately. Explain how many students the four classrooms can serve and how quickly you expect to fill them.
The FDD and franchise agreement. Lenders read the fee tables, territory, term, renewal and transfer provisions. See how lenders read a Franchise Disclosure Document.
Site and lease. Proximity to schools, parking for parent drop-off, a lease term that covers the loan and reasonable rent all matter.
Historical financials for resales. For an existing center, provide several years of tax returns, profit and loss statements and enrollment data.
Multi-Unit Growth
Owners who plan several centers should ask about development schedules and territory rights before signing. Lenders typically want the first center to show stable enrollment before funding the next, and they will review combined cash flow across locations.
Real-World Scenarios
A software professional. A former developer uses an SBA 7(a) loan for the fee, build-out and working capital and hires a center director with teaching experience.
A former educator. A teacher with school relationships emphasizes Tech Clubs and camps in the business plan and finances the computer lab separately.
A resale buyer. A buyer purchases an existing center with an enrolled student base and finances it on historical tuition revenue.
A second center. An owner with a stable first location opens another territory using that center’s results to support the loan.
Common Mistakes to Avoid
- Relying on older published cost figures instead of the current FDD
- Underestimating technology costs and replacement cycles
- Projecting full classrooms in the first months
- Ignoring the gap between summer camps and the school-year ramp
- Signing a lease far from the schools you plan to serve
- Leaving too little working capital for marketing and payroll
For more, read common educational business loan mistakes.
Next Steps to Finance Your iCode Franchise
Step 1: Review your finances. Confirm your liquidity, credit and net worth before you speak with the franchisor.
Step 2: Request the current FDD. Study Items 5, 6, 7, 10, 11, 12, 17, 19 and 21 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn how much you can borrow before you commit to a territory.
Step 4: Find a site and get bids. Gather a lease proposal, contractor estimates and technology quotes.
Step 5: Build your business plan. Model each program, instructor payroll, rent, fees and debt service.
Step 6: Apply and close. Submit your loan package, coordinate franchisor approval and schedule the build-out.
iCode Franchise Loan FAQs
How much does an iCode franchise cost?
In January 2021 the company described a total investment of $149,000 including working capital. Costs have likely changed, so confirm the current range in Item 7 of the FDD.
What is the iCode franchise fee?
The company described a typical franchise fee of $35,000 in that same announcement. Check Item 5 of the current FDD.
What royalty does iCode charge?
The royalty is not published on the pages we could verify. Item 6 of the FDD lists the royalty, marketing fund and other recurring fees.
How much liquid capital do I need?
Ask the franchisor for its current requirements. Lenders will also want enough cash for the equity injection and reserves.
Can I use an SBA loan for an iCode center?
Yes, if you qualify. iCode is on the SBA Franchise Directory under code S2012 with no special notes.
Can I finance the computers and robotics equipment separately?
Yes. Technology and classroom equipment can often be financed or leased apart from the main loan.
Do I need a technology background?
It helps, but strong management skills and a plan to hire qualified instructors can also support an iCode franchise loan.
Can I buy an existing iCode center?
Existing centers may come up for sale. A resale requires franchisor transfer approval, and lenders will review the center’s historical financials and enrollment.
Does iCode offer financing?
Check Item 10 of the FDD, which discloses any financing the franchisor or its affiliates offer.
How long is the franchise term?
The term is not published on the pages we could verify. Item 17 of the FDD explains term, renewal and transfer.
What documents do I need for a loan?
Expect personal tax returns, a personal financial statement, the FDD and franchise agreement, a lease proposal, contractor bids, equipment quotes and a business plan with projections.
Final Thoughts
An iCode franchise loan finances a multi-classroom learning center whose results depend on enrollment, instructor quality and community relationships. Start from the current FDD rather than older published figures, budget carefully for technology and keep enough reserves for the ramp between camp seasons and the school year.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and educational services financing solutions.
