Not sure if Flour Power is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get Matched
Flour Power
How much does Flour Power cost?
Initial Investment Range
$189,900 to $676,000
Franchise Fee
$58,500 to $60,000
The franchise that we offer is for Flour Power, a Studio that provides cooking and etiquette classes, parties, and special events for children and team-building events for adults, and other products and services.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Flour Power May 3, 2024 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Flour Power Business Development Inc. (Flour Power) financial statements for 2023 show a net loss of over $1 million and a negative net worth of over $500,000. These figures, along with a significant excess of current liabilities over current assets, indicate severe financial distress. The franchisor explicitly discloses in the FDD that its financial condition “calls into question” its ability to provide support. You are dependent on the continued financial support of its parent company, whose financials are not provided.
Potential Mitigations
- Your accountant must conduct a deep analysis of the franchisor's financial statements, including the notes and the parent company's role.
- A business advisor can help you assess the operational risks stemming from a financially weak franchisor.
- Discuss the franchisor's plan to achieve profitability and the parent company's commitment to continued support with your attorney.
High Franchisee Turnover
Medium Risk
Explanation
Item 20 data shows two franchise terminations in 2022 out of a base of 15 stores (a 13.3% termination rate) and one termination in 2023. While not catastrophic, a double-digit termination rate in a recent year for a small system of only 16 outlets can be a sign of potential issues within the system, such as franchisee unprofitability or dissatisfaction. This turnover rate suggests a notable level of churn that warrants further investigation.
Potential Mitigations
- You should contact former franchisees listed in Exhibit H to understand their reasons for leaving the system.
- Discussing the specific circumstances of the terminations with the franchisor can provide important context.
- An accountant can help you analyze the turnover rates in Item 20 relative to system growth and industry benchmarks.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD package. The data in Item 20 shows that the system's growth has been slow or stalled in recent years, rather than expanding at a rate that might outpace its ability to provide support. Rapid growth can sometimes strain a franchisor's resources, leading to diminished franchisee support, so its absence here is noteworthy. However, stalled growth can present its own set of challenges regarding brand momentum.
Potential Mitigations
- A business advisor can help you evaluate if the franchisor's growth strategy aligns with your long-term goals.
- Discussing the franchisor's capacity for supporting new and existing units is a key part of due diligence.
- An analysis of the franchisor's financials with your accountant can help determine if they have the resources to support future growth.
New/Unproven Franchise System
High Risk
Explanation
While the franchise has operated since 2015, it was acquired by a new parent company, Won Life Holdings, LLC, in August 2022. The franchisor explicitly discloses a 'Short Operating History' as a special risk, likely referring to this new ownership. This, combined with the significant financial losses reported in Item 21 under the new ownership, suggests the current management has not yet proven the business model is sustainable under their leadership, which increases your investment risk.
Potential Mitigations
- A thorough review of the new management team's experience and track record with other franchise concepts is essential with a business advisor.
- Engaging an accountant to scrutinize the financial performance since the acquisition can reveal key trends and weaknesses.
- It is critical to speak with franchisees who have operated under both the old and new ownership to compare support levels.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. The business model, which involves providing cooking classes and parties for children and adults, is an established concept in the educational and entertainment services industry. While subject to changing consumer tastes, it does not appear to be based on a short-term trend or fad, suggesting a more stable underlying demand for its services. Your own market research should confirm local demand.
Potential Mitigations
- A business advisor can help you conduct local market research to gauge long-term demand for these types of services.
- Evaluating the franchisor's plans for innovation and adaptation can provide insight into the business's longevity.
- An accountant can assist in building financial models that test the business's resilience to shifts in consumer spending.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. Item 2 indicates that the current management team, which took over in August 2022, has extensive prior experience in the franchise industry with other established brands like Famous Toastery and MOOYAH Burgers. While their financial performance with Flour Power has been poor to date, they do not appear to lack general franchising experience. This experience should theoretically benefit the system's operations and strategy.
Potential Mitigations
- A business advisor should still help you vet the management team's specific successes and failures in their prior roles.
- Discussing the quality of management and strategic direction with current franchisees provides direct insight.
- Inquiring about the specific strategies the experienced team plans to implement to turn around the poor financial performance is crucial.
Private Equity Ownership
Medium Risk
Explanation
The franchisor is owned by Won Life Holdings, LLC, a holding company that also owns the franchise systems for Famous Toastery and Cartridge World. This structure can present risks similar to private equity ownership. Decisions may be made to benefit the holding company's overall portfolio or prepare for a future sale, which may not always align with the long-term health of the Flour Power system or your individual profitability. Resources and management focus could be split among different brands.
Potential Mitigations
- Investigating the track record and reputation of the parent company and its management of other franchise brands is wise.
- A franchise attorney should review the Franchise Agreement for terms related to the sale or assignment of the franchise system.
- Asking current franchisees about any changes in support or strategy since the parent company's acquisition can be revealing.
Non-Disclosure of Parent Company
High Risk
Explanation
While the parent company is disclosed in Item 1, its financial statements are not included in the FDD. The franchisor's own financials show it is operating at a significant loss and is dependent on cash advances from its parent and affiliates to continue operations. The absence of parent company financials prevents you from fully assessing the parent's ability to provide the necessary ongoing support, which presents a significant risk to your investment.
Potential Mitigations
- Your accountant must evaluate the franchisor's dependency on its parent for funding and its ability to operate independently.
- It is crucial to ask the franchisor for financial statements of the parent company, Won Life Holdings, LLC.
- Your franchise attorney can advise on the implications of investing in a franchise that is financially dependent on a parent whose finances are not disclosed.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not disclose any predecessors for Flour Power. The change in control in 2022 was a stock purchase of the existing company, not an acquisition of assets from a predecessor entity. Therefore, the risk of inheriting undisclosed issues from a prior company that operated the system is not applicable here.
Potential Mitigations
- Your attorney can confirm the nature of any past ownership changes to ensure no predecessor history has been omitted.
- In any franchise purchase, a business advisor can help research the full history of the brand.
- Asking long-tenured franchisees about the company's history is a valuable part of due diligence.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 states that there is no litigation that requires disclosure. This suggests the franchisor is not currently involved in any material legal disputes with franchisees or other parties related to fraud, contract violations, or other relevant claims. The absence of litigation can be a positive indicator, but does not eliminate all other risks.
Potential Mitigations
- An attorney can help you perform public record searches to verify the absence of litigation.
- Asking current and former franchisees about any past or pending legal disputes is a key due diligence step.
- A business advisor can help you understand that a lack of litigation does not guarantee a healthy franchise system.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Related Education Franchises
Angus Valley Montessori
$1,889,000 to $3,031,000
Bach to Rock
$254,500 to $544,500
Code Ninjas
$68,500 to $298,250
Gokhale Method Institute
$8,531 to $23,422
Hyper Kidz
$748,633 to $1,834,833
Inter-State Studio
$13,100 to $51,450
Kidcreate Studio
$63,045 to $1,438,370
Leadership Management
$20,000 to $27,500
Lil Athletes
$95,500 to $140,625
Mathnasium
$90,436 to $248,616
Safari Kid
$401,540 to $1,776,700
Tippi Toes
$67,100 to $166,500