Not sure if Sticky Fingers Cooking 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
Sticky Fingers Cooking
How much does Sticky Fingers Cooking cost?
Initial Investment Range
$77,528 to $125,379
Franchise Fee
$48,375
You will operate an in person mobile cooking school for children that offers cooking instruction at schools, camps, special events and online using the trademark “Sticky Fingers Cooking”.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Sticky Fingers Cooking April 15, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 21, 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
The audited financial statements for SFC Team Franchise, LLC (SFC) show a net loss of over $138,000 for 2024 and a members' deficit (negative net worth) of over $197,000. This is a significant indicator of financial weakness. State regulators have required fee deferrals due to this condition. This financial instability could impair SFC's ability to provide support or even remain in business, and is explicitly listed as a Special Risk.
Potential Mitigations
- A franchise accountant must thoroughly analyze the financial statements, including the notes and the auditor’s report, to assess the company's viability.
- Discuss the implications of the negative net worth and ongoing losses with your financial advisor to evaluate the investment risk.
- Your attorney should review the state-mandated fee deferral provisions to understand how they may protect your initial investment.
High Franchisee Turnover
Medium Risk
Explanation
As a new franchise system, there is no history of franchisee turnover. However, the data in Item 20 shows that SFC has reduced its number of company-owned outlets from five to two over the last two years, selling three to franchisees. This could suggest that company-owned locations may not have been meeting profitability expectations, a potential risk indicator for the business model's performance.
Potential Mitigations
- It is critical to contact current and former company-outlet managers, if possible, to understand the history of those locations; your business advisor can help guide this research.
- Inquire with the franchisor about the strategic reasons for selling corporate outlets rather than expanding them.
- Your accountant should model potential profitability scenarios very conservatively, given the lack of positive unit economic data.
Rapid System Growth
Medium Risk
Explanation
Item 20 data shows the system is growing rapidly, from zero franchised outlets at the start of 2023 to eight by the end of 2024, with more planned. When combined with the franchisor's stated financial weakness in Item 21, this rapid growth could strain its ability to provide adequate training and ongoing support to all new franchisees. Resources may be stretched thin, potentially compromising the quality of support you receive.
Potential Mitigations
- Asking the franchisor directly about their specific plans to scale support staff and systems to match franchise sales is an important step.
- A conversation with the most recent franchisees to join the system can provide insight into the current quality of training and support.
- Your business advisor can help you assess whether the franchisor's support infrastructure seems adequate for its growth trajectory.
New/Unproven Franchise System
High Risk
Explanation
SFC began franchising in late 2022 and has a limited operating history as a franchisor, which is highlighted as a Special Risk. The management team's franchising experience is not extensive. Investing in a new system carries higher risk as the business model, support systems, and brand recognition are not yet fully proven in the market. The franchisor's financial instability further elevates this risk.
Potential Mitigations
- Your business advisor should help you conduct extensive due diligence on the long-term viability of the business concept itself.
- Speaking with the earliest franchisees is crucial to understanding their experience with the developing system.
- Your attorney might be able to negotiate more franchisee-favorable terms to compensate for the higher risk associated with an emerging brand.
Possible Fad Business
Low Risk
Explanation
The business focuses on children's cooking classes. While enrichment activities for children have a market, you should consider if the specific demand for this type of service is a long-term, sustainable trend or one that could be subject to changing parental interests or economic pressures. The long-term viability of your seven-year franchise agreement could be impacted if the market proves to be a temporary fad.
Potential Mitigations
- Researching the long-term trends in children's enrichment programs and their resilience during economic downturns would be a prudent step.
- A discussion with a business advisor can help you assess the potential for market saturation and competition.
- Question the franchisor on their plans for innovation and adapting the curriculum to maintain long-term consumer interest.
Inexperienced Management
Medium Risk
Explanation
The executive team, as described in Item 2, has experience operating the business concept since 2011. However, their experience specifically in managing a national franchise system appears limited, with the company only starting to franchise in late 2022. A lack of deep franchising experience can pose risks related to the quality of support, training programs, and strategic growth, which differ from simply operating corporate locations.
Potential Mitigations
- In your discussions with the franchisor, inquire about any experienced franchise consultants or advisors they have engaged to guide their growth.
- It is important to ask current franchisees about the quality and sophistication of the franchise-specific support and systems.
- A business advisor can help you evaluate whether the management team's skills are well-suited for scaling a franchise network.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD Package. The franchisor, SFC, appears to be privately held by its founders and is not owned by a private equity firm. A private equity-owned franchisor can sometimes prioritize short-term returns over the long-term health of the system, which may affect franchisees.
Potential Mitigations
- It is still wise to ask the franchisor about their long-term plans for the company, including any potential for a future sale.
- Your attorney should review the assignment clause in the Franchise Agreement to understand what happens if the company is sold in the future.
- Understanding the ownership structure and its potential impact on the franchise system is a key part of due diligence a business advisor can assist with.
Non-Disclosure of Parent Company
Medium Risk
Explanation
The FDD discloses an affiliate, Real V Texas, LLC, which owns the intellectual property and the proprietary "The Dash" software. The franchisor, SFC, is a separate entity. While SFC's financials are provided, the financials for this critical affiliate are not. This arrangement could create risks if the affiliate that owns the core assets experiences financial trouble or has conflicts with the franchisor entity you are contracting with.
Potential Mitigations
- Your attorney should closely examine the licensing agreement between the affiliate and the franchisor for stability and continuity.
- Inquiring about the financial health and long-term commitment of the affiliate company is a critical due diligence step.
- An accountant can help you assess the risks of being dependent on an affiliate whose financial condition is not disclosed.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 1 states that the franchisor has no predecessor company. A predecessor is a company from which the franchisor acquired the main assets of the business. Reviewing predecessor history, when applicable, is important as it can reveal inherited issues with litigation, bankruptcy, or franchisee relations.
Potential Mitigations
- Your attorney can confirm the franchisor's corporate history to ensure there are no undisclosed predecessors.
- Even without a formal predecessor, it is useful to research the business history of the founders and their previous ventures with a business advisor.
- Asking early-stage franchisees about the company's formation and history can provide valuable context.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD Package. Item 3 states there is no litigation required to be disclosed. A pattern of lawsuits, especially those initiated by franchisees alleging fraud or misrepresentation, can be a major red flag about the franchisor's practices and the health of the system. Similarly, a high number of lawsuits initiated by the franchisor against its franchisees could indicate an overly aggressive or litigious culture.
Potential Mitigations
- Although no litigation is disclosed, you can perform independent online searches for any legal disputes involving the franchisor or its principals.
- Your attorney can conduct more formal legal searches to verify the information presented in Item 3.
- Speaking with current and former franchisees is a good way to learn about any disputes, even those that haven't resulted in formal litigation.
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
Abbey Road Institute
$517,400 to $2,459,100
Arthur Murray
$71,120 to $252,120
Gokhale Method Institute
$8,531 to $23,422
GradePower Learning
$125,540 to $226,410
Huntington Learning Center
$159,367 to $298,357
Kidcreate Studio
$63,045 to $1,438,370
LearningRx
$148,000 to $235,750
My Gym Enterprises
$240,800 to $425,600
Prep Academy Tutors
$52,600 to $65,600
Primrose Schools
$742,900 to $8,645,000
The Entrepreneur’s Source
$114,350 to $133,450
Tippi Toes
$67,100 to $166,500