Not sure if Young Chefs Academy 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
Young Chefs Academy Logo

Young Chefs Academy

YCA Franchising, Inc.
https://franchise.youngchefsacademy.com/
1-503-327-3009
10412 China Spring Rd Ste F #1157, Waco, TX 76708

How much does Young Chefs Academy cost?

Initial Investment Range

$247,301 to $483,436

Franchise Fee

$53,000 to $138,000

As a Young Chefs Academy® franchisee, you will operate a cooking school for children.

Enjoy our partial free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Young Chefs Academy June 10, 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
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor’s audited financial statements reveal significant financial weakness. For the fiscal year ending December 31, 2024, YCA Franchising, Inc. (YCA) reported a net loss of over $574,000 and has a large accumulated deficit. This financial position, coupled with a recent change in control, may indicate an inability to provide ongoing support, invest in the brand, or maintain long-term stability, posing a substantial risk to your investment.

Potential Mitigations

  • A franchise accountant must conduct a thorough review of the financial statements, including all notes, to assess the franchisor's viability and cash flow.
  • Discuss the implications of the recent ownership changes and financial performance directly with the franchisor's management.
  • Your attorney should investigate if any financial performance bonds or escrow arrangements are required by state law due to these financial results.
Citations: Item 21, Exhibit F

High Franchisee Turnover

High Risk

Explanation

Item 20 data from 2024 shows a very high rate of franchisee transfers. There were 5 transfers during the year out of a system size of approximately 27 outlets. A high number of transfers can be a red flag, sometimes masking franchisee distress or dissatisfaction, as units may be sold at a loss to exit the system. This indicates potential underlying issues with profitability or the business model, representing a significant risk to new investors.

Potential Mitigations

  • It is critical to contact a significant number of former franchisees from the list in Exhibit E, especially those who transferred, to understand their reasons for leaving.
  • Your business advisor can help you analyze the turnover rate in the context of the industry and system size.
  • A franchise attorney should help you formulate questions for both the franchisor and former franchisees about the circumstances of these transfers.
Citations: Item 20, Exhibit E

Rapid System Growth

Low Risk

Explanation

This specific risk was not identified in the FDD package. Rapid, uncontrolled growth can strain a franchisor's ability to provide adequate support to its franchisees. A system expanding too quickly may lack the infrastructure for training, site selection, and ongoing operational assistance, potentially harming the entire network.

Potential Mitigations

  • Engaging a business advisor to evaluate the franchisor's support infrastructure in relation to its growth rate is a wise step.
  • An accountant should analyze the franchisor's financials in Item 21 to determine if they are reinvesting in support systems.
  • Your attorney can help you question current franchisees about the quality and timeliness of support they receive.
Citations: Not applicable

New/Unproven Franchise System

Medium Risk

Explanation

While the franchisor began offering franchises in 2014, it states in Item 1 that it does not currently operate any of the businesses of the type being franchised. Additionally, some key executive roles have been filled very recently. This lack of direct, current operational experience at the corporate level could potentially impact the quality of operational guidance, system development, and support provided to you.

Potential Mitigations

  • A business advisor can help you conduct extensive due diligence on the management team's specific experience in this industry and in franchising.
  • You should speak with a wide range of current franchisees to gauge the quality of support and guidance they receive from the current management team.
  • An accountant can help assess whether the franchisor's financial investment in support staff and systems seems adequate.
Citations: Item 1, Item 2

Possible Fad Business

Low Risk

Explanation

The business focuses on providing cooking classes for children, a concept that relies on sustained parental spending on extracurricular activities. While not definitively a fad, the long-term demand and resilience of this specific niche through various economic cycles could be a consideration. You should assess if the business model has demonstrated adaptability and enduring appeal beyond current trends.

Potential Mitigations

  • A business advisor can assist you in researching the long-term market trends for children's enrichment programs in your local area.
  • Carefully question the franchisor about their strategies for innovation and adapting the curriculum and services to maintain future relevance.
  • It would be prudent to speak with long-standing franchisees about how demand has evolved over time.
Citations: Item 1, Item 11

Inexperienced Management

Medium Risk

Explanation

Item 2 indicates that some members of the executive team are very new to their roles with the franchisor, with the CEO and COO starting in mid-2025. While they may have prior industry experience, their recent arrival at YCA introduces a degree of uncertainty regarding leadership stability and direction. Their limited history with this specific system could affect strategic decisions and the execution of support obligations.

Potential Mitigations

  • Thoroughly vetting the specific franchise and industry experience of the new executive team members is a critical due diligence step.
  • You should ask the franchisor about the reasons for the recent leadership changes and their vision for the company's future.
  • Consulting with a business advisor can help you assess the potential impact of this new leadership on the franchise system.
Citations: Item 2

Private Equity Ownership

High Risk

Explanation

The franchisor has undergone significant recent ownership changes. An auditor's note in the financial statements indicates a majority interest was sold to an LLC on January 1, 2024, and then all shares were sold to a new parent company, Youth Franchise Brands, LLC, on May 5, 2025. Such rapid changes in control can create instability and signal a strategy focused on short-term returns rather than long-term brand health, which could impact franchisee support and system direction.

Potential Mitigations

  • Researching the new parent company's history and track record with other brands is an important step for your business advisor.
  • Asking the franchisor directly about their strategic plans following the recent acquisition is crucial for understanding future direction.
  • Your attorney can help you understand any changes in the franchise relationship or agreements resulting from the new ownership.
Citations: Item 1, Item 21, Exhibit F

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor, YCA, and its parent company, Youth Franchise Brands, LLC, are disclosed in Item 1. The franchisor's financials are provided. When a franchisor is a subsidiary, non-disclosure of a parent company's financials, if the parent guarantees obligations or is a key supplier, can obscure the true financial health of the system.

Potential Mitigations

  • Your accountant should always verify that the financial statements provided are for the correct legal entity granting the franchise.
  • If a parent company exists and provides a guarantee, your attorney should confirm whether the parent's financial statements are required and provided.
  • Understanding the full corporate structure with a business advisor helps assess where the ultimate financial responsibility lies.
Citations: Item 1, Item 21, Exhibit F

Predecessor History Issues

Low Risk

Explanation

Item 1 discloses a predecessor, Young Chefs International LP, which operated from 2005 to 2010. While the FDD reports no litigation or bankruptcy for this predecessor, its existence means the brand has a longer history under different ownership. Understanding any inherited challenges or changes in the system since the predecessor's time is part of a complete due diligence process.

Potential Mitigations

  • Asking the franchisor about the transition from the predecessor and any significant changes made to the system since that time is recommended.
  • If possible, speaking with very long-term franchisees who may have operated under the predecessor could provide valuable historical context.
  • Your attorney can help you assess if the predecessor's history presents any residual risks.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states, "No litigation is required to be disclosed in this Item." A pattern of lawsuits, especially those initiated by franchisees alleging fraud or misrepresentation, can be a major red flag indicating systemic problems. The absence of such disclosed litigation is a positive factor.

Potential Mitigations

  • It is still prudent to have your attorney conduct an independent public records search for litigation involving the franchisor or its principals.
  • Discussing any past or current disputes with a range of franchisees is a valuable part of due diligence.
  • Your business advisor can help you assess the significance of any litigation that may be discovered.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
6
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.

3

Financial & Fee Risks

Total: 10
3
5
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.

4

Legal & Contract Risks

Total: 16
3
9
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.

5

Territory & Competition Risks

Total: 5
3
2
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.

6

Regulatory & Compliance Risks

Total: 10
5
3
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.

7

Franchisor Support Risks

Total: 4
1
3
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.

8

Operational Control Risks

Total: 12
4
8
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.

9

Term & Exit Risks

Total: 18
8
6
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.

10

Miscellaneous Risks

Total: 1
0
1
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.