Building Kidz School Franchise Cost, Revenue & Review 2026
- Investment
- $327K – $1.5M
- Disclosed sales
- $1.4M
- gross sales, not profit
- SBA charge-off
- Limited · 19 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Building Kidz School is an early childhood education and childcare franchise serving infants through age twelve, with a performing-arts curriculum. Franchisees run the schools, managing teachers, enrollment, and licensing compliance.
FranchiseVerdict summary · 2026
A Building Kidz School franchise requires a total initial investment of $327K – $1.5M, including a $25K – $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.4M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $327K – $1.5M
- 58th pct Education
- Avg gross sales
- $1.4M
- Outlet subset28th pct Education
- Royalty
- 7.0%
- 21st pct Education
- Units
- 55
- 55th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $327K – $1.5M including a $60K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.4M/year (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- GROWTHPositive: net +7 franchised outlets in the latest year (7 opened, 0 closed); 26 signed but not yet open (Item 20).
- TERMSNo 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
Corporate structure & franchisor financials
- Legal entity
- Building Kidz Worldwide, LLC
- Parent company
- Building Kidz Worldwide Holdco, LLC
- FDD Item 1, page 7 of the 2026 FDD
- Ultimate parent
- Building Kidz Holdings, LLC
- FDD Item 1, page 7 of the 2026 FDD
- 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
- $5.6M
- vs $5.7M prior year
Overview
About
- CEO
- Vineeta Bhandari
- Headquarters
- CA
- Founded
- 2015
- FDD year
- 2026
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 381% above the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $75K | $150K |
| Equipment, build-out, other | $192K | $1.3M |
| Total initial investment | $327K | $1.5M |
Source: Building Kidz School 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $327K – $1.5M
- Middle of category vs category
- Liquid capital req'd
- $75K – $150K
- Middle of category vs category
- Franchise fee
- $25K – $60K
- Middle of category vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $360 |
| Training fee | $5K |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 236% above the education norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Building Kidz School until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.0M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Building Kidz School unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.4M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 27 outlets
- vs category median 16
- Range (low → high)
- $364K→$5.3MCited, not corroborated — printed on page 50 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.4M/year in gross sales. Revenue-to-investment ratio: 1.5x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Education median).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 14.7% CAGR over 3 years across 55 units — operators are staying and new ones are joining.
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education medians
How Building Kidz School Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 55
- Opened
- 7
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 84%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (3-yr)
- +14.7%
- Net unit change over 3 years
- 3-yr CAGR
- +14.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 26
- 0.47 per open outlet · Item 20 Table 5
- Projected new
- 14
- 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 · 15 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.
Where the owners are · Item 20 owner list
57 current owners across 15 states.
- CA 35
- WA 6
- AZ 3
- FL 2
- AL 1
- GA 1
- KS 1
- MD 1
- MI 1
- NJ 1
- OR 1
- TN 1
- +3 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 19 loans
- Limited SBA coverage: 19 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 19 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- n=2,945 loans
- Jobs supported
- 219
- 1.9 per loan
- Lender concentration
- 31%
- top lender's share
Borrower mix: 42% went to startups / new businesses, 58% to established operators
Franchise vs independent — in child day care services, franchised businesses charge off at 5.3% vs 13.0% for independents — franchising is associated with 59% lower SBA default risk in this category.
Top lenders financing Building Kidz School franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Building Kidz School from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 76%
- Avg interest rate
- 7.64%
- Lender concentration
- 30.8%
- Job velocity
- 1.9 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 2.3%
- NAICS 624410
- Jobs supported
- 219
Top SBA lendersTop lender holds 31% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Cadence Bank | 4 | $5.1M | 0.0% |
| 2 | Fremont Bank | 2 | $1.8M | 0.0% |
| 3 | KeyPoint CU | 2 | $1.2M | 0.0% |
| 4 | HomeTrust Bank | 2 | $900K | N/A |
| 5 | Readycap Lending, LLC | 1 | $1.0M | 0.0% |
| 6 | U.S. Bank, National Association | 1 | $735K | N/A |
| 7 | DFCU Financial | 1 | $675K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 6 | 0 | 0.0% |
| GAGeorgia | 2 | 0 | 0.0% |
| TXTexas | 2 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
| KYKentucky | 1 | 0 | 0.0% |
| TNTennessee | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One 2017 arbitration/settlement with a converted-school buyer (Golden Stone) that defaulted on purchase/franchise obligations, settled for $348,000; plus four 2024 JAMS arbitration actions filed by the franchisor against franchisees (Barth, Kalsi, MJ & K Kidz, Buccola) to collect royalty payments.
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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 54 / 100 verdict
- 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
- 03MINORNo protected territory creates direct competition risk between franchisees and cannibalization concerns
- 04MINORRoyalty 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| 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
One 2017 arbitration/settlement with a converted-school buyer (Golden Stone) that defaulted on purchase/franchise obligations, settled for $348,000; plus four 2024 JAMS arbitration actions filed by the franchisor against franchisees (Barth, Kalsi, MJ & K Kidz, Buccola) to collect royalty payments.
Items 10, 11
Training & Operations
- Classroom training
- 74 hrs
- On-the-job training
- 30 hrs
- Training location
- Foster City, CA headquarters, live online, corporate schools in CA, or franchisee's location
- Ongoing training
- Optional
- Field support
- 30 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Building Kidz Connect (childcare management software/CRM)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Building Kidz Connect (childcare management software/CRM)
Item 20 · call current owners
Franchisee Contacts
57 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $327K – $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 $1.4M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Building Kidz School?
Building Kidz School is franchised by Building Kidz Worldwide, LLC. Its parent company is Building Kidz Worldwide Holdco, LLC. The ultimate parent named in the FDD is Building Kidz Holdings, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Building Kidz School FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Building Kidz School FDD and qualifies whose outlets they describe.
What is Building Kidz School's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Building Kidz School (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Building Kidz School franchise locations are there?
As of their most recent FDD filing, Building Kidz School has 55 total units in the United States, including 46 franchised units and 9 company-owned units. 7 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 B-grade franchise with a verdict score of 54 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.