Building Kidz School
Bottom line
- Total investment $310K – $1.5M including a $60K franchise fee.
- Average unit revenue of $1.1M/year (median $811K). Estimated payback in 3.0 years.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
- 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
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 Building Kidz School unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Building Kidz School units return on equity?
Equity IRR · 5-yr
48.8%
7.28× MOIC
Year-1 DSCR
1.90×
EBITDA ÷ debt service
Equity required
$2.1M
on $10.2M purchase
Total debt
$8.1M
SBA $5.0M + senior + seller note
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.
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 · 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 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
Deteriorating franchisee relationships (4 lawsuits in 2024), anemic unit growth, unprotected territory, and going concern issues present meaningful risks despite solid historical unit economics.
Score breakdown · what drove the 56 / 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
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
86 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Building Kidz School · FDD (2025) PDF