Hyper KidzFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hyper Kidz franchise requires a total initial investment of $749K – $1.8M, including a $43K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.7M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $749K – $1.8M
- 62nd pct Education
- Avg gross sales
- $1.7M
- 38th pct Education
- Royalty
- 6.0%
- 6th pct Education
- Units
- 7
- 21st 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
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 5 to 1 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $749K – $1.8M including a $43K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.7M/year.
- Verdict A (Top Quintile) with a risk score of 44/100. SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Boomerang Franchise LLC
- Incorporated in
- MD
- HQ
- 6120 Syracuse Court, Clarksville, Maryland 21029
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $140K
- vs $588K prior year
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.
- CEO
- Chinnababu Gudapati
- Headquarters
- MD
- Founded
- 2018
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $43K | $43K | |
| Training Feenot refundable | $8K | $10K | |
| Rent - 3 Monthsnot refundable | $58K | $124K | |
| Security Deposits | $19K | $41K | |
| Designated Designer/Designated Architect Feesnot refundable | $25K | $50K | |
| Leasehold Improvementsnot refundable | $250K | $900K | |
| Signagenot refundable | $12K | $36K | |
| Furniture, Fixtures & Equipmentnot refundable | $250K | $400K | |
| Initial Inventorynot refundable | $15K | $25K | |
| Computer Systemnot refundable | $8K | $20K | |
| Permits and Licensesnot refundable | $2K | $6K | |
| Building Permits/Impact Feesnot refundable | $5K | $20K | |
| Professional Feesnot refundable | $5K | $20K | |
| Insurancenot refundable | $4K | $16K | |
| Training Expensesnot refundable | $1K | $5K | |
| Grand Opening Advertisingnot refundable | $5K | $14K | |
| Additional Funds - 3 Monthsnot refundable | $40K | $70K | |
| Total initial investment | $749K | $1.8M |
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
$252K
15.0% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $749K – $1.8M
- Near category avg vs category
- Liquid capital req'd
- $40K – $70K
- Near category avg vs category
- Franchise fee
- $43K – $43K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $290 |
| Transfer fee | $21K |
| Renewal fee | $11K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Actual
- Sample size
- 4 units
- vs category median 14 · small
- Range (low → high)
- $1.1M→$2.4M
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 237 Education brands
vs Education averages
How Hyper Kidz Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 3
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 71%
- vs corporate-owned
- Net growth (yr3)
- +150.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 1
- Transfer rate
- 20.0%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
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 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $11.1M
- Median loan
- $1.3M
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hyper Kidz's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REESE CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 44 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| 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 | 15 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 24 hrs
- Training location
- On-site and franchisor location
- POS system
- Party Center
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Party Center
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hyper Kidz · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hyper Kidz franchise?
The total investment to open a Hyper Kidz franchise ranges from $749K – $1.8M, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hyper Kidz franchise owners earn?
According to Item 19 of the Hyper Kidz FDD, the average gross sales per unit is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hyper Kidz's franchise failure rate?
Based on SBA 7(a) loan data, Hyper Kidz has a charge-off rate of 0.0% across 11 loans, meaning 0.0% 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 Hyper Kidz franchise locations are there?
As of their most recent FDD filing, Hyper Kidz has 7 total units in the United States, including 5 franchised units and 2 company-owned units. 3 new units were opened in the latest reporting year.
Is Hyper Kidz a good franchise to buy?
FranchiseVerdict rates Hyper Kidz as a A-grade franchise with a risk score of 44 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.