Building Kidz SchoolFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Building Kidz School franchise requires a total initial investment of $310K – $1.5M, including a $60K franchise fee. Per the 2025 FDD, average unit revenue was $2.0M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 19 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $310K – $1.5M
- 50th pct Education
- Avg gross sales
- $2.0M
- 40th pct Education
- Royalty
- N/A
- Units
- 48
- 49th pct Education
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 19 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 39 to 34 over 3 years. Investigate why operators are leaving.
35% cash-on-cash return (based on EBITDA). Above the 20% threshold most investors target.
Bottom line
- Total investment $310K – $1.5M including a $60K franchise fee.
- Average unit revenue of $2.0M/year, with an estimated 35% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 11/100. SBA loan charge-off rate of 0.0% across 19 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Building Kidz Worldwide, LLC
- CEO title
- Founder, Chief Executive Officer & Chief Marketing Officer
- Vineeta Bhandari
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 303 Vintage Park Drive, Suite 130, Foster City, CA 94404
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $4.6M
- vs $5.7M prior year
Overview
About
Building Kidz School is an early childhood education and after-school enrichment franchise operating childcare, preschool, and skill-development programs. Franchisees manage day-to-day operations including curriculum delivery, staff hiring/training, parent communications, and facility management for children typically ages infant through school-age. Revenue is generated through tuition fees, enrollment-based billing, and supplementary program fees.
- CEO
- Vineeta Bhandari
- Headquarters
- CA
- Founded
- 2015
- FDD year
- 2025
- States available
- 8
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $75K | $150K |
| Equipment, build-out, other | $175K | $1.3M |
| Total initial investment | $310K | $1.5M |
Source: Building Kidz School 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$317K
16.0% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $310K – $1.5M
- Near category avg vs category
- Liquid capital req'd
- $75K – $150K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- The greater of 7% of Gross Revenue or the Minimum Royalty…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 2.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 7% of Gross Revenue or $500/month minimum |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $4K |
| Transfer fee | $60K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- N/A
- Avg ebitda
- $319K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 34.6%
- Based on EBITDA / investment midpoint
- Item 19 type
- ebitda
- Sample size
- 27 units
- vs category median 14
- Range (low → high)
- $68K→$3.9M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Building Kidz School Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 4
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.1%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 81%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (yr3)
- +2.6%
- Net unit change last year
- 3-yr CAGR
- +14.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 15
- Franchisor's next-year forecast
- Transfer rate
- 2.1%
- Owners selling to other franchisees
- Ceased ops
- 2.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 35 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $20.7M
- Median loan
- $743K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Building Kidz School's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 9-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 19 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Deteriorating franchisee relationships (4 lawsuits in 2024), anemic unit growth, unprotected territory, and going concern issues present meaningful risks despite solid historical unit economics.
Litigation (Item 3)
Building Kidz Worldwide, LLC v. Golden Stone, Inc. (settled April 7, 2017 for $348,000). Four arbitration actions initiated in fiscal year 2024 against franchisees before JAMS.
Largest disclosed settlement: $348,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 11 / 100 rating
- 01MINORStagnant unit growth of only 2.6% YoY with 48 total units suggests market saturation or system-wide challenges
- 02MINORFour separate arbitration actions in FY2024 for royalty collection indicate widespread franchisee financial distress and franchisor-franchisee conflict
- 03HIGHGoing concern status is False, indicating potential financial instability at corporate level
- 04MINORNo protected territory creates direct competition risk between franchisees and cannibalization concerns
- 05HIGHHigh investment range ($309.5K-$1.54M) combined with stagnant growth and litigation raises ROI sustainability questions
- 06MINORRoyalty structure of 7% or $500/month minimum means thin-margin locations still owe $6K annually regardless of profitability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Territory type | Radius |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 0.5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | San Francisco Bay Area, California |
| Jury trial waiver | No |
| Governing law | California |
| Litigation count | 5 |
View Item 3 litigation summary
Building Kidz Worldwide, LLC v. Golden Stone, Inc. (settled April 7, 2017 for $348,000). Four arbitration actions initiated in fiscal year 2024 against franchisees before JAMS.
Items 10, 11
Training & Operations
- Classroom training
- 74 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- Building Kidz Connect and CRM
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Building Kidz Connect and CRM
Item 20 · call current owners
Franchisee Contacts
86 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Building Kidz School · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Building Kidz School franchise?
The total investment to open a Building Kidz School franchise ranges from $310K – $1.5M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Building Kidz School franchise owners earn?
According to Item 19 of the Building Kidz School FDD, the average gross sales per unit is $2.0M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Building Kidz School's franchise failure rate?
Based on SBA 7(a) loan data, Building Kidz School has a charge-off rate of 0.0% across 19 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Building Kidz School franchise locations are there?
As of their most recent FDD filing, Building Kidz School has 48 total units in the United States, including 39 franchised units and 9 company-owned units. 4 new units were opened in the latest reporting year.
Is Building Kidz School a good franchise to buy?
FranchiseVerdict rates Building Kidz School as a A-grade franchise with a risk score of 11 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.