Ivy Kids Early Learning CenterFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ivy Kids Early Learning Center franchise requires a total initial investment of $896K – $9.6M, including a $111K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.7M[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
- $896K – $9.6M
- 64th pct Education
- Avg gross sales
- $2.7M
- 44th pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 20
- 36th 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
At 0.5x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 15 to 12 over 3 years. Investigate why operators are leaving.
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), with an estimated 12% cash-on-cash return (based on EBITDAR).
- Verdict A (Top Quintile) with a risk score of 34/100. 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
- Ivy Kids Systems, LLC
- Parent company
- Ivy Kids, LLC
- Incorporated in
- TX
- HQ
- 2707 Spring Green Boulevard, Katy, Texas 77494
- Auditor
- Carr, Riggs & Ingram, L.L.C.
- Audited financials
- Franchisor revenue
- $2.7M
- vs $3.0M prior year
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.
- CEO
- Amyn Bandali
- Headquarters
- TX
- Founded
- 2015
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $111K | $111K |
| Working capital (3–6 mo) | $250K | $616K |
| Equipment, build-out, other | $535K | $8.8M |
| Total initial investment | $896K | $9.6M |
Source: Ivy Kids Early Learning Center 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$388K
14.5% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
14.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $896K – $9.6M
- Near category avg vs category
- Liquid capital req'd
- $250K – $616K
- Below avg, review vs category
- Franchise fee
- $111K – $111K
- Below avg, review vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
- Payback period
- 8.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $580 |
| Transfer fee | $2K |
| Renewal fee | $5K |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $2.7M
- Per unit, per year
- Median gross sales
- $2.7M
- Avg ebitdar
- $641K
- Reported as EBITDAR in FDD Item 19
- Cash-on-cash
- 12.3%
- Based on EBITDAR / investment midpoint
- Item 19 type
- ebitda
- Sample size
- 12 units
- vs category median 14
- Range (low → high)
- $1.8M→$3.2M
- Cohort dispersion (min → max)
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Education averages
How Ivy Kids Early Learning Center Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 3
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- +25.0%
- Net unit change last year
- 3-yr CAGR
- +25.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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
- $42.4M
- Median loan
- $4.7M
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ivy Kids Early Learning Center's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 7-year lending trend
- SBA 504 real estate/equipment data
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
Early-stage childcare franchise with undisclosed financial performance data, unclear unit economics, and franchisor stability concerns despite strong individual unit profitability metrics.
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, L.L.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 34 / 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
| Initial term | 25 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 | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 65 hrs
- POS system
- Procare
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Procare
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ivy Kids Early Learning Center · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ivy Kids Early Learning Center franchise?
The total investment to open a Ivy Kids Early Learning Center franchise ranges from $896K – $9.6M, with an initial franchise fee of $111K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ivy Kids Early Learning Center franchise owners earn?
According to Item 19 of the Ivy Kids Early Learning Center FDD, the average gross sales per unit is $2.7M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ivy Kids Early Learning Center's franchise failure rate?
Based on SBA 7(a) loan data, Ivy Kids Early Learning Center 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 Ivy Kids Early Learning Center franchise locations are there?
As of their most recent FDD filing, Ivy Kids Early Learning Center has 20 total units in the United States, including 15 franchised units and 5 company-owned units. 3 new units were opened in the latest reporting year.
Is Ivy Kids Early Learning Center a good franchise to buy?
FranchiseVerdict rates Ivy Kids Early Learning Center as a A-grade franchise with a risk score of 34 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.