Kidcreate Studio
Bottom line
- Total investment $63K – $488K including a $45K franchise fee.
- Average unit revenue of $251K/year.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 17 loans (below the industry average).
- System growing at 50.0% CAGR over 3 years with 25 total units — strong expansion trajectory.
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 Kidcreate Studio unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
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
$452K
on $2.3M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
Overview
About
Kidcreate Studio franchisees operate art and creative education studios serving children aged 2-12. Day-to-day operations include teaching art classes, managing enrollment/scheduling, staffing instructors, maintaining facilities, and driving local marketing and parent engagement. Revenue derives from class tuition, birthday parties, camps, and special events.
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 · 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 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
Kidcreate Studio presents moderate-to-caution risk: rapid growth, undisclosed profitability data, and opaque unit economics make validation difficult despite no litigation history.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — unable to validate $251,251 average revenue claim or assess profitability
- 02MINORRapid unit growth (50% YoY) suggests either aggressive expansion or potential instability; unsustainable growth rates often precede corrections
- 03MINORWide investment range ($63K-$488K) indicates highly variable unit economics and unclear cost structure
- 04MINORRoyalty floor of $500/month ($6,000/year) creates unprofitable scenario for units generating <$75K annually
- 05MINORHigh franchise fee ($45K) relative to low average revenue suggests long payback period and cash flow risk for new franchisees
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
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Kidcreate Studio · FDD (2026) PDF