Drama KidsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Drama Kids franchise requires a total initial investment of $44K – $55K, including a $36K franchise fee. Per the 2026 FDD, average unit revenue was $175K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $44K – $55K
- 8th pct Education
- Avg gross sales
- $175K
- 5th pct Education
- Royalty
- N/A
- Units
- 44
- 47th 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
Each dollar invested generates 3.6x in gross revenue, well above the typical 1.5-2.5x range.
Franchising since 2000. Systems this mature have refined operations and brand recognition.
Franchised units fell from 49 to 42 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $44K – $55K including a $36K franchise fee.
- Average unit revenue of $175K/year.
- Verdict B (Above Average) with a risk score of 61/100.
- System contracting at -14.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Drama Kids International, Inc.
- Incorporated in
- FL
- HQ
- 15271 McGregor Blvd., Suite 16-282, Fort Myers, Florida 33908
- Auditor
- MULLEN, SONDBERG, WIMBISH & STONE, P.A.
- Audited financials
- Franchisor revenue
- $863K
- vs $817K prior year
Overview
About
Drama Kids franchisees operate after-school drama classes and performance programs for children, typically renting studio space and managing small instructor teams. Day-to-day operations involve scheduling classes, managing student enrollment, delivering theatrical instruction, organizing recitals/productions, and handling marketing to local schools and parents.
- CEO
- Douglas C. Howard
- Headquarters
- FL
- Founded
- 1999
- FDD year
- 2026
- States available
- 20
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $36K | $36K |
| Working capital (3–6 mo) | $2K | $4K |
| Equipment, build-out, other | $5K | $14K |
| Total initial investment | $44K | $55K |
Source: Drama Kids 2026 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
$28K
16.0% margin
Unlevered ROIC
53%
EBITDA / total invested capital
Payback
23 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $44K – $55K
- Better than avg vs category
- Liquid capital req'd
- $2K – $4K
- Better than avg vs category
- Franchise fee
- $36K – $36K
- Better than avg vs category
- Royalty
- the greater of 8% of Gross Sales or the Minimum Royalty (…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $50 |
| Transfer fee | $8K |
| Renewal fee | $5K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $175K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 40 units
- vs category median 14 · large
- Range (low → high)
- $3K→$738K
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
vs Education averages
How Drama Kids Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 44
- Opened
- 2
- Last reporting year
- Closed
- 1
- Turnover rate
- 2.3%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (yr3)
- +2.4%
- Net unit change last year
- 3-yr CAGR
- -14.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $12K
- Median loan
- $12K
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Drama Kids's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Undisclosed profitability, anemic unit growth, and opaque financial performance create meaningful investment risk despite lack of litigation.
Audited financials (Item 21)
Yes · MULLEN, SONDBERG, WIMBISH & STONE, P.A.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 61 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — cannot verify if $174,740 avg revenue translates to positive net income
- 02MINORMinimal unit growth (2.4% YoY) suggests market saturation or franchisee struggles in a children's entertainment sector with high competition
- 03MEDHigh initial investment ($43,500–$54,500) relative to disclosed revenue without profitability data creates ROI uncertainty
- 04MINORRoyalty structure heavily favors franchisor (8% of gross sales) with escalating minimums ($500/month by year 3 = $6,000 annually), compressing margins on thin revenue
- 05MINOR7-year term is longer than industry standard for entertainment franchises, reducing exit flexibility
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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographic/Demographic |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 11 hrs
- POS system
- Jackrabbit Class
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Jackrabbit Class
Item 20 · call current owners
Franchisee Contacts
42 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Drama Kids · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Drama Kids franchise?
The total investment to open a Drama Kids franchise ranges from $44K – $55K, with an initial franchise fee of $36K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Drama Kids franchise owners earn?
According to Item 19 of the Drama Kids FDD, the average gross sales per unit is $175K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Drama Kids's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Drama Kids (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 Drama Kids franchise locations are there?
As of their most recent FDD filing, Drama Kids has 44 total units in the United States, including 49 franchised units and 2 company-owned units. 2 new units were opened in the latest reporting year.
Is Drama Kids a good franchise to buy?
FranchiseVerdict rates Drama Kids as a B-grade franchise with a risk score of 61 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.
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.