Ivy Kids Early Learning Center
Bottom line
- Total investment $896K – $9.6M including a $111K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $2.7M/year (median $2.7M). Estimated payback in 7.0 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 16 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 Ivy Kids Early Learning Center unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Ivy Kids Early Learning Center units return on equity?
Equity IRR · 5-yr
29.5%
3.64× MOIC
Year-1 DSCR
2.74×
EBITDA ÷ debt service
Equity required
$9.1M
on $20.1M purchase
Total debt
$11.0M
SBA $5.0M + senior + seller note
Overview
About
Ivy Kids franchisees operate early learning centers providing childcare, preschool, and educational programming for infants through pre-K aged children. Day-to-day operations include staff management (typically 15-25 employees per center), curriculum delivery, parent communication, licensing compliance, and facility maintenance. Revenue is generated through monthly tuition fees, with tight margins dependent on enrollment levels and labor cost control.
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 · 9 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
Early-stage childcare franchise with undisclosed financial performance data, unclear unit economics, and franchisor stability concerns despite strong individual unit profitability metrics.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo Item 19 financial performance representations disclosed despite $2.68M average revenue and $747K average net income
- 02MINORExtremely wide investment range ($895.5K–$9.56M) suggests inconsistent unit economics or unclear cost structure
- 03HIGHGoing Concern listed as False — indicates potential financial instability in franchisor operations
- 04MINORHigh royalty rate (7%) on childcare margins typically 25-35%, reducing franchisee profitability
- 05MINOR25% YoY unit growth with only 20 units total suggests early-stage system vulnerability to market saturation
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ivy Kids Early Learning Center · FDD (2025) PDF