Bottom line
- Total investment $749K – $1.8M including a $43K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.7M/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 22 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Hyper Kidz unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hyper Kidz units return on equity?
Equity IRR · 5-yr
36.9%
4.82× MOIC
Year-1 DSCR
2.24×
EBITDA ÷ debt service
Equity required
$4.4M
on $13.4M purchase
Total debt
$9.0M
SBA $5.0M + senior + seller note
Overview
About
Hyper Kidz operates children's entertainment venues (likely play centers, parties, or activity-based facilities) where franchisees manage day-to-day operations including staff supervision, customer service, facility maintenance, birthday party/event bookings, and program scheduling. Franchisees generate revenue through admission fees, party packages, food/beverage sales, and ancillary services.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hyper Kidz presents elevated risk due to lack of profitability transparency, going concern status, micro-scale operations, and unverified explosive growth metrics that may not be sustainable.
Score breakdown · what drove the 57 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — impossible to assess actual profitability despite $1.68M average revenue
- 02HIGHGoing Concern status is False — suggests potential financial instability or structural issues at franchisor level
- 03MINOROnly 7 units system-wide — extremely small franchise network limits support infrastructure and brand recognition
- 04MEDHigh investment range ($748K-$1.8M) with undisclosed net income creates unfavorable risk-to-reward ratio
- 05MINORExplosive 150% YoY unit growth on tiny base (likely 2-3 units added) — unsustainable growth claim and possible unit saturation risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hyper Kidz · FDD (2025) PDF