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Twinkle Toes Nanny Agency

Twinkle Toes Nanny Agency Franchise System, LLC
https://www.twinkletoesnanny.com
1-352-682-8405
9145 SW 49 Place, Gainesville, FL 32608

How much does Twinkle Toes Nanny Agency cost?

Initial Investment Range

$63,350 to $91,350

Franchise Fee

$49,500

Twinkle Toes Nanny Agency Franchise System, LLC offers a franchise for the establishment and operation of a nanny and babysitter referral service using Twinkle Toes’ proprietary system.

Enjoy our partial free risk analysis below

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Twinkle Toes Nanny Agency April 29, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
1
7

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor, Twinkle Toes Nanny Agency Franchise System, LLC (Twinkle Toes), has significant signs of financial instability. The 2024 audited financial statements in Exhibit H include an auditor's 'Going Concern' warning, citing low liquidity and negative working capital. The balance sheet shows negative Members' Equity (net worth) of ($119,015) and only $5 in cash. This raises substantial doubt about the franchisor's ability to remain in business and provide promised support.

Potential Mitigations

  • Your accountant must conduct a thorough review of the franchisor's financial statements, including the 'Going Concern' note and management's plans to address it.
  • Discuss with your franchise attorney the implications of the Maryland state addendum requiring financial assurances due to the franchisor's condition.
  • A business advisor can help you assess if the franchisor's guarantee to fund operations for 12 months is a sufficient protection for your investment.
Citations: Item 21, Exhibit H, Page 4 ('Special Risks to Consider About This Franchise'), Maryland Addendum

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals potentially high franchisee turnover. In 2023, the system started with 18 franchised units and experienced three exits (one transfer and two units reacquired by the franchisor), representing a 16.7% annual turnover rate. A high turnover rate, particularly including units reacquired by the franchisor, can be an indicator of potential issues with franchisee profitability, satisfaction, or system support, which could impact your own success.

Potential Mitigations

  • It is critical to contact former franchisees listed in Exhibit G to understand why they left the system; your attorney can help frame appropriate questions.
  • Ask your accountant to analyze the turnover rates over the three-year period provided in Item 20 to identify any negative trends.
  • Question the franchisor directly about the circumstances surrounding the two units they reacquired in 2023 for a clearer understanding of those events.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This specific risk was not identified in the FDD package. The data in Item 20 shows slow to moderate growth in the number of franchised units over the last three years. Rapid expansion can strain a franchisor's ability to provide adequate support, so the absence of this risk is a positive indicator. However, you should still evaluate the quality of support provided to the existing franchisees.

Potential Mitigations

  • A discussion with your business advisor can help you evaluate if the franchisor's growth plans are sustainable and well-supported.
  • During due diligence calls, asking existing franchisees about the quality and timeliness of franchisor support is a valuable exercise.
Citations: Not applicable

New/Unproven Franchise System

Medium Risk

Explanation

The franchisor began offering franchises in March 2017 and has a relatively small system of approximately 18 units. While not a startup, its long-term track record is not fully established. This risk is elevated by the significant financial instability disclosed in Item 21. An unproven system combined with poor financial health could increase the potential for business model flaws or inadequate support, affecting your investment's viability.

Potential Mitigations

  • A business advisor can help you conduct heightened due diligence on the viability of the business model given the system's age and financial state.
  • Speaking with the longest-operating franchisees from the list in Exhibit F is crucial to understand the system's evolution and historical support levels.
  • Your accountant should help you create conservative financial projections that account for the higher risks associated with a less-proven system.
Citations: Items 1, 2, 20, 21

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The business model, a nanny and babysitter referral service, serves a persistent market need for childcare. This type of service is not typically considered to be based on a short-lived trend or fad, suggesting a greater potential for long-term consumer demand.

Potential Mitigations

  • Engaging a business advisor to research the long-term demand and competitive landscape for childcare services in your specific local market is advisable.
  • You should still develop a business plan that considers potential shifts in the childcare industry and how your business might adapt over time.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the FDD. Item 2 indicates that the key executives, particularly the CEO, have been involved with the business concept since 2011 and with the franchise system since its inception in 2017. This suggests the management team has relevant experience in the specific industry and in managing this franchise system.

Potential Mitigations

  • Asking current franchisees about their perception of management's competence and the quality of support provided is a good due diligence step.
  • A business advisor can help you review the backgrounds of the key personnel listed in Item 2 for any potential concerns.
Citations: Not applicable

Private Equity Ownership

Low Risk

Explanation

This risk was not identified. According to Item 1, the franchisor is a privately held limited liability company and there is no disclosure of ownership by a private equity firm. This means decisions may be less likely to be driven by short-term investor return timelines, which can sometimes be a concern with PE-owned systems.

Potential Mitigations

  • It is still prudent to ask the franchisor about their long-term plans for the company, including any potential future sale.
  • Your attorney can confirm the company's ownership structure and advise on the implications of the 'Assignment by Us' clause in the Franchise Agreement.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified. Item 1 of the FDD does not disclose the existence of a parent company for the franchisor entity. The franchisor entity appears to be a stand-alone company.

Potential Mitigations

  • Your attorney can verify the corporate structure of the franchisor to confirm there are no undisclosed parent or holding companies.
  • Given the franchisor's financial instability, having your accountant assess its capitalization as a standalone entity is a critical step.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk does not appear to be present. Item 1 of the FDD, which requires the disclosure of any predecessors, does not list any such entities. This indicates the franchisor did not acquire the business system from a prior company.

Potential Mitigations

  • You should confirm with your attorney that the information in Item 1 is complete and that there are no undisclosed predecessor entities.
  • Asking early franchisees about the history of the company can provide additional context on its origins and development.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD. Item 3 states, 'No litigation is required to be disclosed in this Item.' This indicates that in the last fiscal year, there has been no material litigation involving the franchisor, its predecessors, or its management that would require disclosure, which is a positive sign regarding legal disputes within the system.

Potential Mitigations

  • Your attorney can perform independent public records searches to verify the absence of significant litigation.
  • In your discussions with current and former franchisees, it is wise to ask about any past or present disputes they are aware of, even if not disclosed.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
3
2
10

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

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3

Financial & Fee Risks

Total: 10
1
8
1

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.

4

Legal & Contract Risks

Total: 16
7
2
7

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.

5

Territory & Competition Risks

Total: 5
1
2
2

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.

6

Regulatory & Compliance Risks

Total: 10
3
3
4

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.

7

Franchisor Support Risks

Total: 4
2
1
1

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.

8

Operational Control Risks

Total: 12
1
8
3

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.

9

Term & Exit Risks

Total: 18
6
10
2

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.

10

Miscellaneous Risks

Total: 2
2
0
0

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.