Gymboree Play & MusicFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Gymboree Play & Music franchise requires a total initial investment of $57K – $393K, including a $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]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $57K – $393K
- 15th pct Education
- Avg gross sales
- $255K
- 8th pct Education
- Royalty
- 6.0%
- 6th pct Education
- Units
- 41
- 45th pct Education
- SBA default
- 13.3%
- 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
Franchising since 1995. Systems this mature have refined operations and brand recognition.
The system contracted 9% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $57K – $393K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $255K/year (median $223K).
- Verdict F (Bottom Quintile) with a risk score of 90/100. SBA loan charge-off rate of 13.3% across 18 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GPPI, Inc.
- Parent company
- Zeavion Holding Pte. Ltd.
- Ultimate parent
- Gymbo Global Holdings Group Company Ltd.
- CEO title
- CEO, GPPI and Group Senior Vice President, Gymbo Global Holdings Group Company
- Xinkai Chen
- Incorporated in
- CA
- HQ
- 3180 Campus Drive, San Mateo, California 94403
- Auditor
- KNAV CPA LLP
- Audited financials
- Franchisor revenue
- $1.6M
- vs $1.5M prior year
Overview
About
Gymboree Play & Music franchisees operate early childhood music and movement centers serving ages 0–5. Day-to-day operations include leading structured music and sensory play classes, managing instructor staff, maintaining a proprietary music/equipment curriculum, coordinating parent drop-in and birthday parties, and handling front-desk/enrollment activities. Revenue derives from monthly class memberships, class packages, and special events.
- CEO
- Xinkai Chen
- Headquarters
- CA
- Founded
- 1994
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 14 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.
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
$35K
13.7% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $57K – $393K
- Better than avg vs category
- Liquid capital req'd
- $17K – $60K
- Better than avg vs category
- Franchise fee
- $20K – $45K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Receipts · 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 | $40 |
| Renewal fee | $10 |
| Total fee load | 9.3% of rev |
Financial Performance
- Avg gross sales
- $255K
- Per unit, per year
- Median gross sales
- $223K
- Item 19 type
- Gross Receipts
- Sample size
- 39 units
- vs category median 14 · large
- Range (low → high)
- $93K→$615K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 237 Education brands
vs Education averages
How Gymboree Play & Music Compares
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
- 9.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -9.1%
- Net unit change last year
- 3-yr CAGR
- -11.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
- 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 · 16 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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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. filed two lawsuits against franchisees for breach of contract and failure to pay royalties. California action (No. 22cv-3678) filed June 22, 2022, voluntarily dismissed September 1, 2022. New York action (No. 22-cv-5167) filed August 30, 2022, included claims for breach of contract, violations of New York Uniform Voidable Transactions Act, and fraud. Default judgment granted March 18, 2024 in amount of $765,920.13 plus post-judgment interest.
Largest disclosed settlement: $765,920
Bankruptcy (Item 4)
Disclosed in last 7 years
Mary Ann O'Neill filed Chapter 11 bankruptcy petition on November 29, 2022 (Case No. 22-73372-REG, Bankr. E.D.N.Y.). GPPI, Inc. is participating as a creditor in the bankruptcy proceeding.
Audited financials (Item 21)
Yes · KNAV CPA LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 90 / 100 rating
- 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
- 03MEDNo Item 19 (Average Unit Volume) disclosed — inability or unwillingness to share profitability data is a major transparency red flag
- 04HIGHActive litigation with $765,920 judgment against franchisee; franchisor pursuing collection through bankruptcy, suggesting cash flow desperation
- 05MEDWide investment range ($57K–$393K) with undisclosed net income creates opacity on actual ROI and unit economics
- 06MINOR6% 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius or specified geographical boundaries |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 3 |
View Item 3 litigation summary
GPPI, Inc. filed two lawsuits against franchisees for breach of contract and failure to pay royalties. California action (No. 22cv-3678) filed June 22, 2022, voluntarily dismissed September 1, 2022. New York action (No. 22-cv-5167) filed August 30, 2022, included claims for breach of contract, violations of New York Uniform Voidable Transactions Act, and fraud. Default judgment granted March 18, 2024 in amount of $765,920.13 plus post-judgment interest.
Items 10, 11
Training & Operations
- Classroom training
- 49 hrs
- On-the-job training
- 10 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
69 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 $57K – $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 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 36 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 risk score of 90 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.
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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.