Kidcreate Studio Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Kidcreate Studio is a children's art education franchise offering art classes, camps, and parties for kids ages 2 to 12. Franchisees run the studios, managing instructors, scheduling, and enrollment.
FranchiseVerdict summary · 2026
A Kidcreate Studio franchise requires a total initial investment of $128K – $488K, including a $70K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average unit revenue was $248K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $128K – $488K
- 41st pct Education
- Avg gross sales
- $248K
- 6th pct Education
- Royalty
- 10.0%
- 55th pct Education
- Units
- 25
- 44th pct Education
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · 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 $128K – $488K including a $70K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage unit revenue of $248K/year.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 50.0% CAGR over 3 years with 25 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Kidcreate Studio Franchising, LLC
- Parent company
- Kidcreate Holdings, Inc.
- Ultimate parent
- LSO H&H LLC
- CEO title
- President
- Mark Nicpon
- Incorporated in
- TX
- HQ
- 7566 Market Place Drive, Eden Prairie, Minnesota 55344
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $765K
- vs $748K prior year
Affiliated brands
- Extreme Art Franchising
- Get Messy
- Franchisor does not offer franchises anymore
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Mark Nicpon
- Headquarters
- MN
- Founded
- 2015
- FDD year
- 2026
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 54% below the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $9K | $15K |
| Equipment, build-out, other | $50K | $403K |
| Total initial investment | $128K | $488K |
Source: Kidcreate Studio 2026 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
- $128K – $488K
- Middle of category vs category
- Liquid capital req'd
- $9K – $15K
- Top 40% of category vs category
- Franchise fee
- $70K – $70K
- Bottom third — review vs category
- Royalty
- 10.0%
- formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $5K – $8K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 69% below the education norm.
Source: FDD 2026 · Item 19
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
$30K
12.0% margin
Unlevered ROIC
9%
EBITDA / total invested capital
Payback
10.7 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Kidcreate Studio unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Kidcreate Studio units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$248K
on $1.2M purchase
Total debt
$994K
SBA $0.6M + senior + seller note
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: 2026 FDD
Financial Performance
- Avg gross sales
- $248K
- Per unit, per year
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 sales
- Range (low → high)
- $33K→$757K
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 204 Education brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $248K/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 9.0% — below the Education average of 10.6%.
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System expanding at 50.0% CAGR over 3 years across 25 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 averages
How Kidcreate Studio Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 25
- Opened
- 8
- 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
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
- 3-yr CAGR
- +50.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
- 10
- Loan volume
- $1.9M
- Median loan
- $138K
- 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
- 7
- Defaults
- 0
- Typical loan rate
- 8.4%
- avg rate to borrowers
- Franchised industry avg
- 8.5%
- brand beats franchise avg ↓
- Jobs supported
- 93
- 5.0 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 67% went to startups / new businesses, 33% to established operators
Franchise vs independent — in fine arts schools, franchised businesses charge off at 8.5% vs 14.1% for independents — franchising is associated with 40% lower SBA default risk in this category.
Top lenders financing Kidcreate Studio franchisees
Showing 3 of 7 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.
Premium insight
SBA Lending Report
Deep-dive into Kidcreate Studio's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Kidcreate Studio presents moderate-to-caution risk: rapid growth, undisclosed profitability data, and opaque unit economics make validation difficult despite no litigation history.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $110,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 73 / 100 verdict
- 01MINORRapid unit growth (50% YoY) suggests either aggressive expansion or potential instability; unsustainable growth rates often precede corrections
- 02MINORRoyalty floor of $500/month ($6,000/year) creates unprofitable scenario for units generating <$75K annually
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| 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 |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Eden Prairie, Minnesota |
| Jury trial waiver | No |
| Governing law | State where franchise is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 47 hrs
- Training location
- Minneapolis, Minnesota and/or franchisee's Studio or virtually
- Ongoing training
- Required
- Field support
- 24 hrs/yr
- On-site visits per year
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
24 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Kidcreate Studio · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Kidcreate Studio franchise?
The total investment to open a Kidcreate Studio franchise ranges from $128K – $488K, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Kidcreate Studio franchise owners earn?
According to Item 19 of the Kidcreate Studio FDD, the average gross sales per unit is $248K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Kidcreate Studio 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 Kidcreate Studio FDD and qualifies whose outlets they describe.
What is Kidcreate Studio's franchise failure rate?
Based on SBA 7(a) loan data, Kidcreate Studio has a charge-off rate of 0.0% across 10 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 Kidcreate Studio franchise locations are there?
As of their most recent FDD filing, Kidcreate Studio has 25 total units in the United States, including 24 franchised units and 1 company-owned units. 8 new units were opened in the latest reporting year.
Is Kidcreate Studio a good franchise to buy?
FranchiseVerdict rates Kidcreate Studio as a A-grade franchise with a verdict score of 73 out of 100 (higher is better), 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.
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.