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From the filings
HQ-led decisions
Prepaze Academy
EducationPrepaze Academy runs 2 company-owned education locations, with Founder and CEO Shenba Chockalingam and CTO Satheesh Kumar Kasi Malaiyarasan controlling all purchasing decisions at HQ.
For software vendors selling into US franchise brands.
Live signals
Total units
2
0 franchised
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2024
Royalty
12%
of gross sales
Ad fund
2%
national + local
Initial fee
$39K
per unit
Investment range
$154K–$309K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
3 years
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
14%of gross sales (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Franchisor behaviours
What the franchisor requires
27 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 2 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 11
You must use the designated accounting software designated by us, and we can require that we have independent view-only access to your account.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to the information and data collected or generated by the computer system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You must submit the following reports by the following due dates.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Student and teaching materials Yes Yes Wall decals and décor Yes Yes
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We reserve the right for us or an affiliate to be an approved supplier or the only approved supplier of any of the items listed in the above table.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In the 2023 fiscal year, we did not collect any money or obtain any revenues from the sale of these products and services to franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
We or Our affiliate may derive revenue from the sale of required goods and services through mark-ups in prices We charge to You for goods and services purchased from Us or an affiliate, or We or an affiliate may receive compensation or discounts from the supplier for Your purchase of such goods and services.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
10Item 8
We estimate that the proportion of required purchases or leases will represent 60% to 80% of your overall purchases in opening your franchise business and 10% to 20% of your overall purchases in operating your franchise business.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
All such property and listings, excluding Your operating assets and inventory that are associated with and considered part of Our brand, Intellectual Property, and System revert back to Us upon termination of this Agreement.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
At Your cost and expense, You must investigate and ensure that You comply with all payment card industry (“PCI”) and data security standard (“DSS”) standards, regulations, and requirements; however, We reserve the right to approve of the supplier You use for compliance.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We may conduct periodic evaluations, inspections, and audits of any or all aspects of Your Franchise Business at reasonable intervals by Our duly authorized representative for compliance with the System, reporting, customer service and the standards and procedures set forth in the Manuals.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We have the right to revise the Manuals at Our sole discretion.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve your site before a lease is entered into or you begin construction.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not create a website for your franchise business.
Is a minimum grand opening advertising spend required?
YesItem 7
You must spend a minimum of $1,000 on marketing your grand opening.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 6
In addition, you must spend at least 5% of gross sales per month to advertise your franchise business locally.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
In the event a local or regional marketing cooperative is formed, You will be required to contribute to the marketing cooperative as established and assessed by the marketing cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase or lease the following products and services from us, other sources designated or approved by us, or according to our specifications as set forth in the manuals:
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase or lease the following products and services from us, other sources designated or approved by us, or according to our specifications as set forth in the manuals:
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
At Your expense, You must participate in Our merchant account and other point of sale programs as set forth in Our Manuals.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Currently, the Fees as shown and calculated on the Gross Sales Report are due and payable and must be received by Us or credited to Our account by pre-authorized bank debit and automatically withdrawn from Your Operating Account
Must the franchisee participate in a gift card program?
YesItem 11
You are required to participate in the loyalty, gift card, discount, memberships, subscription, and coupon programs we develop.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
At Your expense, You must purchase or lease the computer and point of sale (“POS”) system and other computer hardware and software systems designated by Us in strict accordance with Our specifications, and We can mandate the forms of payment that You can or must accept.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to the information and data collected or generated by the computer system.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You are required to use and pay for all software as designated by us in the operation of your franchise.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
You may also request additional subject-specific training for a fee of $250 per person/per subject.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
If held, attendance is mandatory for Your Operating Principal, and You must pay registration Fees, whether or not You attend, and all travel, lodging, food, and other expenses for each of Your attendees.
The filing answers no to 5 questions
- Is there a franchisee advisory council, association or committee?Franchise agreement
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Can a franchisee propose a new supplier for the franchisor's approval?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisee participate in a customer loyalty or rewards program?Franchise agreement
The vendor opportunity at Prepaze Academy
Prepaze Academy runs 2 company-owned locations in the education segment, with a 12% royalty and a 5-year initial term. The 2024 FDD makes no financial performance representation.
Who controls software purchasing
With 0 of 2 locations franchised, purchasing runs through Founder and CEO Shenba Chockalingam and CTO Satheesh Kumar Kasi Malaiyarasan — as CTO, Malaiyarasan is the natural point of contact for a software pitch.
Tech named in the FDD, and what is actually required
Yelp is named under Item 11 of the filing, though it is not required.
Procurement, renewals, and timing
Item 8 requires student and teaching materials and wall decals and décor to come from the franchisor or an affiliate, and notably does not allow franchisees to submit alternative suppliers. Item 17 offers a 4-year renewal term against the current 5-year initial term, requiring 6 to 12 months' notice and modernization to then-current standards.
How to read the Prepaze Academy FDD
The filing embedded below was filed with state franchise regulators in 2024. Talk to FranCloud for a ranked target list of franchise systems like this one.
Questions vendors ask
Prepaze Academy, answered from the filing
With both locations company-owned, purchasing runs through Founder and CEO Shenba Chockalingam and CTO Satheesh Kumar Kasi Malaiyarasan, who as CTO is the natural point of contact for a software pitch.
Yelp is named under Item 11 of the filing, though it is not required.
2 locations, both company-owned, in the education segment.
Item 8 requires student and teaching materials and wall decals from the franchisor or an affiliate, and the franchisor does not accept franchisee-proposed alternative suppliers.
The 5-year initial term is followed by a 4-year Item 17 renewal term, requiring 6 to 12 months' notice and modernization to then-current standards.
The filing is embedded below. It was filed with state franchise regulators in 2024; the FDD makes no financial performance representation.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Prepaze Academy files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
8 operators run 8 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit8
Top states by locations
| MN | 1 |
|---|---|
| MI | 1 |
| IA | 1 |
| WA | 1 |
| CT | 1 |
Related Education brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.