Ivy Kids Early Learning Center Franchise Cost, Revenue & Review 2026
- Investment
- $896K – $1.3M
- Disclosed sales
- $2.7M
- gross sales, not profit
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Ivy Kids Early Learning Center is an early childhood education franchise offering childcare and preschool from infancy through pre-K. Franchisees run the centers, managing teachers, curriculum, enrollment, and licensing.
FranchiseVerdict summary · 2026
A Ivy Kids Early Learning Center franchise requires a total initial investment of $896K – $1.3M, including a $111K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.7M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $896K – $1.3M
- 71st pct Education
- Avg gross sales
- $2.7M
- 33rd pct Education
- Royalty
- 7.0%
- 21st pct Education
- Units
- 20
- 40th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $896K – $1.3M including a $111K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.7M/year (median $2.7M), with an estimated 34% cash-on-cash return (based on EBITDAR).
- RISKVerdict B (Above average), verdict score 63/100 (higher is better).
- GROWTHPositive: net +3 franchised outlets in the latest year (3 opened, 0 closed); 16 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Ivy Kids Systems, LLC
- Parent company
- Ivy Kids, LLC (trademark owner/affiliate)
- FDD Item 1, page 6 of the 2025 FDD
- CEO title
- Chief Executive Officer
- Amyn Bandali
- Incorporated in
- TX
- HQ
- 2707 Spring Green Blvd., Katy, Texas 77494
- Auditor
- Carr, Riggs & Ingram, L.L.C.
- Audited financials
- Franchisor revenue
- $3.0M
- vs $2.7M prior year
Overview
About
- CEO
- Amyn Bandali
- Headquarters
- TX
- Founded
- 2015
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 472% above the typical education franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $111K | $111K |
| Working capital (3–6 mo) | $350K | $616K |
| Equipment, build-out, other | $435K | $601K |
| Total initial investment | $896K | $1.3M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $896K – $1.3M
- Bottom third — review vs category
- Liquid capital req'd
- $350K – $616K
- Bottom third — review vs category
- Franchise fee
- $111K – $111K
- Bottom third — review vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
- Payback period
- 3.0 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 |
| Training fee | $5K |
| Transfer fee | $74K |
| Renewal fee | $5K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 556% above the education norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Ivy Kids Early Learning Center until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.6M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $747K as EBITDAR. This is a disclosed figure, not our estimate — we publish no modelled profit for Ivy Kids Early Learning Center.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Ivy Kids Early Learning Center unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $2.7M
- Per unit, per year
- Median gross sales
- $2.7M
- Avg ebitdar
- $747K
- Reported as EBITDAR in FDD Item 19
- Cash-on-cash
- 33.6%
- Based on EBITDAR / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and expenses
- Sample size
- 12 outlets
- vs category median 16
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.7M/year in gross sales. Revenue-to-investment ratio: 2.4x.
Fee burden
Total ongoing fee load of 8.5% (near the Education median).
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 25.0% CAGR over 3 years across 20 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education medians
How Ivy Kids Early Learning Center Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (3-yr)
- +25.0%
- Net unit change over 3 years
- 3-yr CAGR
- +25.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 16
- 0.80 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
25 current owners across 5 states.
- TX 21
- CA 1
- FL 1
- GA 1
- NC 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 11 loans
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 11 loans
- 5-yr charge-off
- Limited · 11 loans
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
- Typical loan rate
- 7.1%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- n=2,945 loans
- Jobs supported
- 272
- 0.7 per loan
- Lender concentration
- 40%
- top lender's share
Borrower mix: 90% went to startups / new businesses, 10% to established operators
Franchise vs independent — in child day care services, franchised businesses charge off at 5.3% vs 13.0% for independents — franchising is associated with 59% lower SBA default risk in this category.
Top lenders financing Ivy Kids Early Learning Center franchisees
Showing 3 of 4 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Ivy Kids Early Learning Center from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.08%
- Lender concentration
- 40.0%
- Job velocity
- 0.7 per $100K
- NAICS benchmark
- 2.3%
- NAICS 624410
- Jobs supported
- 272
Top SBA lendersTop lender holds 40% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 4 | $19.7M | N/A |
| 2 | Stellar Bank | 3 | $13.4M | 0.0% |
| 3 | Cogent Bank | 2 | $2.7M | N/A |
| 4 | Commonwealth Business Bank | 1 | $4.7M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 8 | 0 | 0.0% |
| GAGeorgia | 2 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Carr, Riggs & Ingram, L.L.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 total revenue $2,988,804 driven mainly by franchise royalties ($2,186,685); other income of $534,303 (below the operating line) included separately. Member distributions of $750,000 in 2024 produced a members' equity deficit of ($95,578). Auditor firm name not present in extracted text (signed Houston, Texas, April 17, 2025).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 01MINORHigh royalty rate (7%) on childcare margins typically 25-35%, reducing franchisee profitability
- 02MINOR25% 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
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 25 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Texas (AAA office in city of franchisor's then-current principal place of business) |
| Jury trial waiver | No |
| Governing law | TX |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 70 hrs
- On-the-job training
- 65 hrs
- Training location
- Katy, Texas (Designated Location), or virtual
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Franchisor approval required; franchisee finds site
- Franchisor financing
- Not offered
- Item 10
- POS system
- Procare Management System / FranchiseSoft / Qvinci
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Procare Management System / FranchiseSoft / Qvinci
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 – $1.3M, 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.
Who owns Ivy Kids Early Learning Center?
Ivy Kids Early Learning Center is franchised by Ivy Kids Systems, LLC. Its parent company is Ivy Kids, LLC (trademark owner/affiliate). Source: FDD Item 1, 2025 filing.
What is Item 19 in the Ivy Kids Early Learning Center FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ivy Kids Early Learning Center FDD and qualifies whose outlets they describe.
What is Ivy Kids Early Learning Center's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ivy Kids Early Learning Center (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 B-grade franchise with a verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.