Bottom line
- Total investment $34K – $111K including a $25K franchise fee.
- Average unit revenue of $102K/year (median $73K).
- Rated CAUTION with a risk score of 71/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Bricks 4 Kidz unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bricks 4 Kidz units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$163K
on $815K purchase
Total debt
$652K
SBA $0.4M + senior + seller note
Overview
About
Franchisees operate STEM/brick-based educational programs for children, typically delivering in-school classes, birthday parties, and after-school camps using building blocks and engineering curricula. Daily operations involve instructor management, scheduling, customer acquisition, and program delivery across schools and community venues within a protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 34 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Bricks 4 Kidz presents high-risk characteristics: inherited SEC litigation and compliance failures, near-zero system growth, opaque unit economics (no Item 19), and royalty structures that challenge profitability for average performers.
Score breakdown · what drove the 71 / 100 rating
- 01MINORStagnant unit growth at 1.5% YoY indicates a mature or declining system with minimal expansion
- 02HIGHSerious inherited litigation involving SEC financial disclosure violations and Virginia governmental actions suggests systemic compliance and transparency issues
- 03MINORNo Item 19 (Average Unit Volume) disclosure prevents validation of the $101,813 avg revenue claim and obscures true unit economics
- 04MINORRoyalty floor of $700/month ($8,400 annually) creates negative cash flow risk for units generating <$120,000 in annual sales
- 05MEDHigh initial investment range ($34.2K-$110.5K) combined with undisclosed net income data prevents ROI analysis
- 06MINOR5-year term is relatively short and suggests franchisor may not be committed to long-term franchisee success
- 07HIGHSEC/financial disclosure litigation raises questions about accuracy of current financial representations to franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
92 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bricks 4 Kidz · FDD (2026) PDF