Gymboree Play & Music Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Gymboree Play & Music is an early childhood franchise offering play, music, and movement classes for kids from birth to age five. Franchisees run the centers, managing instructors, class scheduling, memberships, and parties.
FranchiseVerdict summary · 2026
A Gymboree Play & Music franchise requires a total initial investment of $160K – $393K, including a $20K – $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $255K[2]. SBA 7(a) loans show a 13.3% charge-off rate across 18 loans[1]. FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $160K – $393K
- 45th pct Education
- Avg gross sales
- $255K
- 7th pct Education
- Royalty
- 6.0%
- 7th pct Education
- Units
- 41
- 50th pct Education
- SBA charge-off
- 13.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · 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 $160K – $393K including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $255K/year (median $223K).
- RISKVerdict F (Weakest tier), verdict score 23/100 (higher is better). SBA loan charge-off rate of 13.3% across 18 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -11.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- GPPI, Inc.
- Parent company
- Zeavion Holding Pte. Ltd.
- Ultimate parent
- Gymbo Holdings Group Company Ltd.
- Predecessor
- Gymboree Play Programs, Inc. (formerly); The Gymboree Corporation (predecessor franchisor, 1992-1995)
- Prior franchisor entity
- CEO title
- CEO, GPPI, Inc. and Group Senior Vice President, Gymbo Global Holdings Group Company
- Xinkai Chen
- Incorporated in
- CA
- HQ
- 3180 Campus Drive, San Mateo, CA 94403
- Auditor
- KNAV CPA LLP
- Audited financials
- Franchisor revenue
- $1.5M
- vs $1.6M prior year
Overview
About
- CEO
- Xinkai Chen
- Headquarters
- CA
- Founded
- 1976
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 58% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (1st Center)not refundable | $45K | $45K | |
| Lease Rental and Deposits (3 months' rent) | $3K | $30K | |
| Broker Commissions, Key Money for Real Estate | $0 | $2K | |
| Construction, Architectural Fees, Related Expenses | $0 | $150K | |
| Equipment | $55K | $59K | |
| Decor and Signage | $4K | $9K | |
| Opening Inventory | $12K | $13K | |
| Pre-opening Salaries and Training (travel and living expenses) | $250 | $4K | |
| Office Equipment and Supplies | $6K | $10K | |
| Insurance | $3K | $6K | |
| Utility Deposits | $250 | $500 | |
| Professional Fees | $1K | $5K | |
| Music Rights | $500 | $800 | |
| Additional Funds for First 3 Months | $30K | $60K | |
| Total initial investment | $160K | $394K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $160K – $393K
- Middle of category vs category
- Liquid capital req'd
- $30K – $60K
- Middle of category vs category
- Franchise fee
- $20K – $45K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.3%
- typical 3–5%
- Total fee load
- 9.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.3% of gross sales |
| Technology fee | $230 |
| Transfer fee | $18K |
| Renewal fee | $5K |
| Inventory (initial) | $12K – $13K |
| Total fee load | 9.3% of rev |
What do units actually make?
Average unit sales run 71% below the education norm.
Source: FDD 2025 · 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 Gymboree Play & Music 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
$322K
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 Gymboree Play & Music 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: 2025 FDD
Financial Performance
- Avg gross sales
- $255K
- Per unit, per year
- Median gross sales
- $223K
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 Receipts (historical performance, franchised outlets only, full-year open)
- Sample size
- 32 outlets
- vs category median 16
- Range (low → high)
- $93K→$615K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 204 Education brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $255K/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 9.3% (near the Education average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -11.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 averages
How Gymboree Play & Music Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 41
- Opened
- 0
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 35.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -11.1%
- Net unit change over 3 years
- 3-yr CAGR
- -11.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 14
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 7.3%
- Owners selling to other franchisees
- Continuity rate
- 90.0%
- Units that stayed open
- Ceased ops
- 9.8%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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
- 18
- Loan volume
- $4.0M
- Median loan
- $185K
- 50th percentile
- Charge-off rate
- 13.3%
- 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)
- 86.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 2
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 8.5%
- brand above franchise avg ↑
- Jobs supported
- 159
- 3.9 per loan
- Lender concentration
- 28%
- top lender's share
Borrower mix: 60% went to startups / new businesses, 40% to established operators
Franchise vs independent — in fine arts schools, franchised businesses charge off at 8.5% vs 14.1% for independents — franchising is associated with 40% lower SBA default risk in this category.
Top lenders financing Gymboree Play & Music franchisees
Showing 3 of 11 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.
Premium insight
SBA Lending Report
Deep-dive into Gymboree Play & Music's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 13.3% — 17% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Gymboree Play & Music exhibits severe distress signals: declining system (−9.1% YoY), going concern doubts, zero profitability transparency, and active litigation—this is a contracting brand with questionable franchisor solvency.
Litigation (Item 3)
GPPI, Inc. v. Mary Ann O'Neill et al. (E.D.N.Y. No. 22-cv-5167) — breach of contract, fraud, voidable transactions; default judgment of $765,920.13 entered in favor of GPPI in associated bankruptcy proceeding. GPPI is plaintiff/creditor.
Largest disclosed settlement: $765,920
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KNAV CPA LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenue for FY2024 of $1,506,737 comprises royalty fees $968,380, franchise fees $211,250, corporate revenues $249,941, and product and equipment sales $77,166; other_revenue ($8,979) is non-operating "Other income." Company has a total stockholder's deficit of $(718,951).
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 23 / 100 verdict
- 01HIGHGoing Concern status is FALSE — franchisor financial viability is questioned
- 02MINORSystem declining sharply: 41 units with -9.1% YoY contraction indicates market rejection or operational failure
- 03HIGHActive litigation with $765,920 judgment against franchisee; franchisor pursuing collection through bankruptcy, suggesting cash flow desperation
- 04MINOR6% royalty on gross receipts (not net) means franchisees pay fees even during losses; combined with declining unit count, suggests unit-level economics are deteriorating
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | No |
| Arbitration location | California (mediation/litigation only, no arbitration) |
| Jury trial waiver | No |
| Governing law | State where Center is located |
| Litigation count | 1 |
View Item 3 litigation summary
GPPI, Inc. v. Mary Ann O'Neill et al. (E.D.N.Y. No. 22-cv-5167) — breach of contract, fraud, voidable transactions; default judgment of $765,920.13 entered in favor of GPPI in associated bankruptcy proceeding. GPPI is plaintiff/creditor.
Items 10, 11
Training & Operations
- Classroom training
- 49 hrs
- On-the-job training
- 10 hrs
- Training location
- GPPI headquarters in San Mateo, CA and/or company-owned sites; also online
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee (with GPPI approval required)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
56 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Gymboree Play & Music · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Gymboree Play & Music franchise?
The total investment to open a Gymboree Play & Music franchise ranges from $160K – $393K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Gymboree Play & Music franchise owners earn?
According to Item 19 of the Gymboree Play & Music FDD, the average gross sales per unit is $255K. The median is $223K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Gymboree Play & Music 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 Gymboree Play & Music FDD and qualifies whose outlets they describe.
What is Gymboree Play & Music's franchise failure rate?
Based on SBA 7(a) loan data, Gymboree Play & Music has a charge-off rate of 13.3% across 18 loans, meaning 13.3% 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 Gymboree Play & Music franchise locations are there?
As of their most recent FDD filing, Gymboree Play & Music has 41 total units in the United States, including 40 franchised units and 1 company-owned units.
Is Gymboree Play & Music a good franchise to buy?
FranchiseVerdict rates Gymboree Play & Music as a F-grade franchise with a verdict score of 23 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.