Icode vs Rainbow Station
Icode vs Rainbow Station: Icode costs $77K to $491K to open; Rainbow Station costs $150K to $2.0M. Icode has 51 units, Rainbow Station has 10. SBA loan history: Icode = 35 loans (5.7% default); Rainbow Station = 8 loans (0.0% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Icode vs Rainbow Station: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Icode requires the lower minimum capital commitment ($77K vs $150K for Rainbow Station), a 49% spread. Ongoing royalty load is 8% for Icode and 6% for Rainbow Station, giving Rainbow Station the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Icode operates 51 units to Rainbow Station's 10, roughly 5× the system size.
SBA Lending Profile
Icode has the deeper SBA lending track record, with 35 7(a) approvals compared with 8 for Rainbow Station. Icode's peak SBA year was 2023 (10 loans); Rainbow Station's peak was 2008 (3 loans). Icode's more recent peak generally indicates fresher lender appetite. Both systems have the most SBA funded units in TX. Borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Icode deals is $268K vs $1.1M for Rainbow Station, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 5.7% for Icode and 0.0% for Rainbow Station, Rainbow Station has the cleaner SBA loss record by 5.7 points. PeerSense FPI scores come in at 63 (Moderate) for Icode and 41 (Fair) for Rainbow Station, giving Icode the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 63/100 | 41/100 |
Health Tier | Moderate | Fair |
Confidence | N/A | N/A |
Lending Trend | Stable | Declining |
SBA Lending
SBA Loans | 35 | 8 |
SBA Volume | – | – |
Default Rate | 5.7% | 0.0% |
Peer Tier | established | emerging |
Investment & Costs
Total Investment | $77K to $491K | $150K to $2.0M |
Franchise Fee | $40K | N/A |
Royalty Rate | 8% | 6% |
Ad Fund | 2% | N/A |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Not Disclosed |
System Size & Operations
Total Units | 51 | 10 |
Franchised Units | 47 | 10 |
Company Owned | 4 | – |
Term Length | 10 yrs | N/A |
Brand Information
Year Founded | N/A | 1989 |
Franchising Since | 2016 | N/A |
Years Franchising | 10 yrs | N/A |
Headquarters | TX | CEDAR PARK, TX |
Category | All Other Miscellaneous Schools | All Other Miscellaneous Schools |
Website | ||
FDD Year | 2025 | N/A |
Which Is Better, Icode or Rainbow Station?
Lower upfront capital required
Tie
Icode: $77K starting · Rainbow Station: $150K starting
More SBA lender confidence
Icode
Icode: 35 SBA loans · Rainbow Station: 8 SBA loans
Lower SBA default rate
Rainbow Station
Icode: 5.7% · Rainbow Station: 0.0%
Larger system & brand presence
Tie
Icode: 51 units · Rainbow Station: 10 units
Lower ongoing royalty load
Rainbow Station
Icode: 8% · Rainbow Station: 6%
More lender financing options
Icode
Icode: 14 unique lenders · Rainbow Station: 7 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Icode vs Rainbow Station: Franchise Funding Comparison
Comparing Icode and Rainbow Station is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $77K to $2.0M.
Icode has 35 SBA loans on record and Rainbow Station has 8. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Icode vs Rainbow Station, Frequently Asked Questions
Which is a better franchise investment, Icode or Rainbow Station?
How much does a Icode franchise cost compared to Rainbow Station?
Can I finance Icode or Rainbow Station with an SBA loan?
Which has a lower SBA default rate, Icode or Rainbow Station?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman