FranchiseVerdict
Genius Kids logo
FV-01048·MODERATEExcellent81

Genius Kids

Education - Children's ProgramsFranchising since 2010Website
Investment
$276K – $909K
55th pct Children's Pr…
Avg revenue
69th pct Children's Pr…
Royalty
Units
25
59th pct Children's Pr…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $276K – $909K including a $50K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 3 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Genius Kids Development, Inc.
Incorporated in
California
HQ
2220 Peralta Blvd, Fremont, California 94536
Auditor
Cpa Auditor, Inc.
Audited financials
Franchisor revenue
$1.1M
vs $1.0M prior year

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 Genius Kids unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $276K–$909K
Working capital
$
FDD reports $20K–$35K

Unlevered ROIC · per unit

21%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$128K
EBITDA margin
17.0%
Total invested
$620K
Payback
58 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Genius Kids operates educational enrichment centers focused on early childhood development and tutoring services. Franchisees manage day-to-day instruction, student enrollment, staff training, and facility operations while marketing to parents seeking academic and developmental programming. Revenue typically derives from monthly tuition fees, after-school programs, and summer camps.

CEO
Rennu Dhillon
Founded
2010
FDD year
2025
States available
2

Item 7 · what it costs

The Vitals

Total investment
$276K – $909K
All-in to open one unit
Liquid capital
$20K – $35K
Cash you must have on hand
Franchise fee
$50K
Royalty
the greater of 6% of monthly Gross Revenues or $1,000 per…
Ad fund
0.0%
typical 3–5%
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
25
Opened
1
Last reporting year
Closed
3
Turnover rate
12.0%
Company-owned
2
Corporate units in the system
% franchised
92%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
-8.0%
Net unit change last year
3-yr CAGR
-4.2%
Compounded over last 3 years
2023
23-2
Franchised units
2024
25
Franchised units
2025
24
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 31 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 31 states
Not registered

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.

Total loans
3
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

64
Risk · 0-100
MODERATE64 / 100

Declining unit count, absent financial transparency, high investment requirements, and franchisor financial weakness create meaningful franchise risk despite protected territories and no litigation.

Score breakdown · what drove the 64 / 100 rating

  1. 01MEDUnit count declined 8.0% YoY (25 units) suggests system contraction and potential franchisee struggles
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents ROI validation and obscures unit economics
  3. 03MEDHigh initial investment range ($276k–$909k) with undisclosed returns creates asymmetric risk for franchisees
  4. 04MINORMinimum $1,000/month royalty floor may be unsustainable for underperforming locations, forcing closures
  5. 05HIGHGoing Concern status = 'False' indicates financial instability in franchisor's own operations

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
39 hrs
On-the-job training
31 hrs

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

51 numbers

Locked
(808) 586-••••
HI
(408) 836-••••
CA
(224) 678-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

Genius Kids · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above