Bottom line
- Total investment $327K – $587K including a $25K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $938K/year (median $868K). Estimated payback in 5.0 years.
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 130 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 Kid to Kid unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Kid to Kid units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $9.9M purchase
Total debt
$7.9M
SBA $4.9M + senior + seller note
Overview
About
Kid to Kid operates children's resale/consignment retail stores, buying and selling gently used children's clothing, toys, furniture, and accessories. Franchisees manage daily store operations including inventory acquisition, customer service, visual merchandising, and local marketing. The model relies on community foot traffic and repeat consignment partnerships with local families.
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 · 11 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
Declining unit base, prior litigation revealing support deficiencies, and absence of verified earnings claims create meaningful execution risk for new franchisees despite reasonable unit economics.
Score breakdown · what drove the 49 / 100 rating
- 01MINORUnit count declining 2.0% YoY (119 units) suggests system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGH2014 litigation involved franchisor liability for inadequate support ($186,750 judgment) — evidence of operational/advisory gaps that may persist
- 03HIGHNo Item 19 (going concern = false) means franchisor provides no audited financial performance claims, forcing reliance on limited average data that may not reflect typical unit performance
- 04MINORNet income ($91,329) represents only 9.7% margin on average revenue ($938,483), leaving minimal buffer for underperformance or unexpected costs
- 05HIGHLitigation history combined with declining unit count suggests franchisor-franchisee relationship friction and possible reputational damage
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
Kid to Kid · FDD (2025) PDF