Verified — real FDD extraction
SBA-eligible · directory code S2157 since 2017
CODE NINJAS
Other · independent · est. —
Code Ninjas is an after-school learning center where kids learn computer coding by building video games in a guided, game-based curriculum. A franchisee operates a center, employing instructors ("senseis") who coach children, and runs classes, camps, and parties.
CODE NINJAS net unit count declined -14.6% from 2021–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: the system is shrinking.
Exit rate · latest year
5.4%
fiscal 2025, per Item 20
Cost to open
$174K–$266K
Item 7 total investment range
SBA loan defaults
16.7%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2021–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 13 of 239 franchised outlets left the system — a 5.4% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Outlets at start | 248 | 287 | 289 | 269 | 244 |
| Opened | 48 | 24 | 14 | 18 | 14 |
| Transfers | 18 | 17 | 31 | 25 | 16 |
| Terminations | 0 | 19 | 5 | 8 | 2 |
| Non-renewals | 0 | 0 | 7 | 20 | 8 |
| Reacquired by franchisor | 2 | 3 | 3 | 0 | 2 |
| Ceased — other reasons | 7 | 1 | 21 | 13 | 3 |
| Outlets at end | 287 | 289 | 269 | 244 | 245 |
| Net change | +39 | +2 | -20 | -25 | +1 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 150 SBA-backed loans to CODE NINJAS franchisees since 2018. Of the 84 that have resolved, 16.7% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
16.7%
14 of 84 resolved defaulted
70.9%
avg. charged-off $ ÷ approved $
11.8%
default rate × loss severity
$228,436
what recent franchisees borrowed
47 mo
approval → charge-off, defaulted loans
24 vs 37
distinct banks still lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO CODE NINJAS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
A typical CODE NINJAS buyer since 2020 borrowed $228K through SBA — about $33K a year in debt service. Against the brand's own disclosed median unit revenue of $216K, that is 15.1% of every dollar the store takes in — before rent, payroll, food, or royalty.
Who finances it
Stearns Bank National Association
16.7% of this brand's loans
That lender charges off 11.8% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
75.2%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 150 SBA 7(a)/504 loans to CODE NINJAS franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $45K franchise fee (Item 5) and a total investment of $174K–$266K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$174K–$266K
all-in investment range
Franchise fee (Item 5)
$45K
upfront, one-time
Royalty (Item 6)
8.25%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$83K
8.25% of sales, before profit
Over a 10-yr term
$825K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for CODE NINJAS with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand sits mid-pack: riskier than 48% of systems we score.
Risk percentile
48 / 100
Measured
Modeled SBA charge-off
12.2%
Observed SBA charge-off
16.7%
Top drivers: Share financed by high-loss lenders (lowers) · Investment ceiling (log) (raises) · Item 3 litigation (log) (raises) · Single-lender dependence (raises). 50+ resolved loans and complete disclosure data — the score is checkable against the brand's observed rate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for CODE NINJAS. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing CODE NINJAS's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →CODE NINJAS franchise questions, answered from the filings
What percentage of CODE NINJAS franchises closed last year?
In CODE NINJAS's latest FDD Item 20 (fiscal 2025), 13 of 239 franchised outlets left the system — an annualized exit rate of 5.4%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a CODE NINJAS franchise cost?
Per CODE NINJAS's 2026 FDD, buying in requires an initial franchise fee of $45K (Item 5) and a total initial investment of $174K–$266K (Item 7).
What royalty does CODE NINJAS charge?
CODE NINJAS charges an ongoing royalty of 8.3% of gross sales, per Item 6 of its 2026 FDD.
Does CODE NINJAS disclose earnings (Item 19)?
Yes — CODE NINJAS makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $216K. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for CODE NINJAS franchises default?
Across 150 SBA-backed loans to CODE NINJAS franchisees since 2018, 14 of the 84 that have resolved were charged off — a 16.7% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.