Kiddie Academy Franchise Cost & 2026 FDD Data
83/100
Strongest tier
83 this brand55 Education medianlikely 79–87 (high confidence)
Higher is better · an editorial assessment, not investment advice
#130 of 3,069 graded brands
Why an A: Helped by unit economics, unit growth, scale, legal record and transparency. See all six factors
- Total investment
- $590K – $1.0M
- Avg gross sales
- $2.2M
- “2025 Mature Academies (Average)”, 293 outlets; not profit
- SBA charge-off
- 7.0%
1 in 14 SBA 7(a) loans to Kiddie Academy owners charged off (16 of 229 resolved loans, approved since FY1991); Education median 11.9%. Loans approved FY2014–FY2023: 4 of 146 resolved loans charged off (2.7%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Kiddie Academy franchise requires a total initial investment of $590K – $1.0M, including a $150K franchise fee. Once open, the ongoing royalty is 7.0%. Per the 2026 FDD, average gross sales were $2.2M (Item 19 group “2025 Mature Academies (Average)”, 293 outlets; gross sales, not profit). SBA 7(a) loans show a 7.0% charge-off rate on 229 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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
Quick verdict · vs Education median
Top edge: green = better than the Education median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $2.2M/year (outlet median $2.1M; Item 19 group “2025 Mature Academies (Average)”, 293 outlets; gross sales, not profit), with an estimated 37% cash-on-cash return (based on Gross Profit). Note: this is gross profit, not take-home income.
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 19 (23 opened, 4 closed).
AT STAKEOne unit at the Item 7 midpoint: $104K a year in payments on assumed SBA 7(a)-style terms.You put in about $160K of your own cash and personally guarantee a $640K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- 1 pending matter names the franchisor in Item 3 (litigation). Pending claims are allegations, not findings; for a system this size the score counts the legal record in the brand's favour. Read the matter in Item 3.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, SBA charge-off rate 7.0%, below the 11.9% category median and the full filing on file, and an Item 19 average from 315 units. Not on file here, so ask: jury-trial waiver, supplier rebates and owner-operator rule.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Kiddie Academy owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 4.2× the Education median ($188K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Kiddie Academy Domestic Franchising, LLC (Item 1: 3415 Box Hill Corporate Center Drive, Abingdon, Maryland 21009) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $150K | $150K |
| Working capital (first 3 months) | $65K | $130K |
| Equipment, build-out, other | $375K | $730K |
| Total initial investment | $590K | $1.0M |
Source: Kiddie Academy 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
Payback period2.7 yrs · from FDD / Item 19
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross revenues |
| Marketing / ad fund | 2.0% of gross revenues |
| Transfer feeItem 17 lists $25,000 | $50,000 |
| Total fee loadnear the Education median of 9.0% | 9.0% of sales |
What do units actually make?
Average gross sales are 5.1× the Education median ($427K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Kiddie Academy unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $2.2M (FDD p.70), and the royalty and ad fund take about $197K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $104K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $800K Item 7 midpoint is a $640K loan, paid over 10 years at 10.5%: $104K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Kiddie Academy's past SBA 7(a) loans averaged 6.4% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $160K Assumption (the part the loan does not cover of the $800K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $640K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
FDD-reported earnings
The FDD reports $534K as Gross Profit. This is a disclosed figure, not our estimate: we publish no modelled profit for Kiddie Academy.
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Kiddie Academy unit leave you each year after the loan payment?
Item 19: $2,193,815 average for 293 outlets (2025 Mature Academies (Average)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $590K to $1.0M
Item 7's $65K to $130K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $640K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by Kiddie Academy Domestic Franchising, LLC
Financial performance
- Avg gross profit
- $534K
- The filing's own Gross Profit line (Item 19), as it defines it; not comparable with other brands' figures
- Cash-on-cash
- 36.7%
- Based on Gross Profit / investment midpoint
- Top and bottom 25%
- $1.4M→$3.2M
- Average of the bottom 25% (73) → average of the top 25% (73), 2025 Mature Academies (Average), by sales
Percentile ranks within Education
Each rank is among the Education brands that report that figure (the count is under each bar).
Item 19 · 6 groups · FDD pp.70, 71, 84, 85
Item 19 by group
The 2026 filing reports gross sales for 6 groups of outlets. The headline average on this page is the “2025 Mature Academies (Average)” group (293).
| Group | n | Average | Median |
|---|---|---|---|
| 2025 Mature Academies (Average)headline above | 293 | $2.2M | $2.1M |
| 2025 Mature Academies Top Quarter by Gross ProfitTop 25% by sales of 2025 Mature Academies (Average) | 73 | $3.2M | $2.9M |
| 2025 Mature Academies Bottom Quarter by Gross ProfitBottom 25% by sales of 2025 Mature Academies (Average) | 73 | $1.4M | $1.3M |
| 2025 Ramping Academies (Average, <24mo) | 22 | $1.5M | $1.5M |
| 2025 Ramping Academies Top Quarter by Gross ProfitTop 25% by sales of 2025 Ramping Academies (Average, <24mo) | 6 | $1.9M | $1.8M |
| 2025 Ramping Academies Bottom Quarter by Gross ProfitBottom 25% by sales of 2025 Ramping Academies (Average, <24mo) | 6 | $1.2M | $1.1M |
Costs and gross profit, as the filing prints them
The filing's “Gross Profit” is after royalty, ad fund and rent. The filing does not say whether it is after debt service and depreciation. Gross sales are not profit, and this line is not take-home pay: what it leaves out still has to be paid.
The cost lines for 6 groups (FDD pp.70, 71, 84, 85)
| Line, as the filing names it | 2025 Mature Academies (Average)n=293 | 2025 Mature Academies Top Quarter by Gross Profitn=73 |
|---|---|---|
| Average gross sales | $2.2M | $3.2M |
| Labor Expense | $1.0M | $1.4M |
| Occupancy Expense | $371K | $394K |
| Miscellaneous Expense | $269K | $377K |
| Gross Profit | $534K | $1.1M |
| Line, as the filing names it | 2025 Mature Academies Bottom Quarter by Gross Profitn=73 |
|---|---|
| Average gross sales | $1.4M |
| Labor Expense | $763K |
| Occupancy Expense | $364K |
| Miscellaneous Expense | $182K |
| Gross Profit | $80K |
| Line, as the filing names it | 2025 Ramping Academies (Average, <24mo)n=22 | 2025 Ramping Academies Top Quarter by Gross Profitn=6 |
|---|---|---|
| Average gross sales | $1.5M | $1.9M |
| Labor Expense | $801K | $892K |
| Occupancy Expense | $375K | $214K |
| Miscellaneous Expense | $197K | $232K |
| Gross Profit | $167K | $572K |
| Line, as the filing names it | 2025 Ramping Academies Bottom Quarter by Gross Profitn=6 |
|---|---|
| Average gross sales | $1.2M |
| Labor Expense | $725K |
| Occupancy Expense | $659K |
| Miscellaneous Expense | $167K |
| Gross Profit | $-319K |
vs Education medians
How Kiddie Academy 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.
Who are you contracting with?
Kiddie Academy Domestic Franchising, LLC, owned by Essential Brands, Inc.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Kiddie Academy Domestic Franchising, LLC
- Parent company
- Essential Brands, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- HQ
- 3415 Box Hill Corporate Center Drive, Abingdon, Maryland 21009
Overview
About
Early childhood education and child care franchise (KADF)
Is the system healthy?
+37 franchised outlets over the two years to 2025 (326 to 363, +11.3% in total, +5.5% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units rose from 326 in 2023 to 363 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 40 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 39 states and DCNo current outlet
361 current outlets in 40 states: the 361 on the owner list, of 363 franchised at year end (Item 20), run by 281 franchisee companies.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 7.0% of 229 resolved SBA 7(a) loans, below the 11.9% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 398
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $546.6M
- Average loan
- $1.4M
- loan volume divided by loans
- Charge-off rate
- 7.0%
- 16 of 229 resolved loans
- Paid in full
- 93.0%
- of resolved loans
- Charge-off, loans approved FY2014–FY2023
- 2.7%
- 4 of 146 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 85
- Average interest rate
- 6.4%
- Jobs reported
- 10,067
- on the 382 loans approved FY1998 on; earlier loans did not record jobs
- Lender concentration
- 8%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Education brand charges off 11.9% (21 brands with a published rate, same cumulative window and source). This brand is 5.0 points below it.
Borrower mix: of 214 loans with a business-age entry, 210 recorded an age: 164 (78%) went to startups or businesses under two years old and 46 (22%) to established businesses or ownership changes; 4 were marked unanswered.
The approval-year breakdown covers 218 of the 229 resolved loans and 15 of the 16 charge-offs (FY1994 to FY2023).
SBA 7(a) · charge-off rate by approval year
Kiddie Academy: below all franchise loans in each of the 8 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge; recent years are too early to judge while loans are still being repaid). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1994 | 3 | 1 | Too few |
| 1995 | 9 | 3 | Too few |
| 1997 | 3 | 1 | Too few |
| 2001 | 4 | 0 | Too few |
| 2002 | 4 | 0 | Too few |
| 2004 | 6 | 1 | Too few |
| 2005 | 5 | 0 | Too few |
| 2006 | 3 | 0 | Too few |
| 2008 | 4 | 2 | Too few |
| 2010 | 4 | 1 | Too few |
| 2011 | 6 | 0 | Too few |
| 2012 | 5 | 2 | Too few |
| 2013 | 16 | 0 | 0.0% |
| 2014 | 14 | 0 | 0.0% |
| 2015 | 26 | 2 | 7.7% |
| 2016 | 24 | 0 | 0.0% |
| 2017 | 18 | 2 | 11.1% |
| 2018 | 24 | 0 | 0.0% |
| 2019 | 18 | 0 | 0.0% |
| 2020 | 7 | 0 | Too early |
| 2021 | 11 | 0 | 0.0% |
| 2023 | 4 | 0 | Too early |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Kiddie Academy from SBA 7(a) FOIA loan records.
- Principal charged off (% of dollars)
- 0.5%
- Average charge-off
- $187K
- across 16 charged-off loans
- Average SBA guarantee
- 73%
- Average interest rate
- 6.4%
- Lender concentration
- 8%
- Jobs reported
- 10,067
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| TD Bank, National Association | ||
| 30 | $22.8M | Not on file |
| Live Oak Banking Company | ||
| 27 | $69.8M | Not on file |
| Bank Five Nine | ||
| 26 | $21.8M | Not on file |
| PNC Bank, National Association | ||
| 19 | $35.8M | Not on file |
| Wilmington Savings Fund Society FSB | ||
| 19 | $14.3M | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| TX Texas | 60 | 3 | 10.0%30 resolved |
| NJ New Jersey | 36 | 1 | 3.7%27 resolved |
| MD Maryland | 30 | 1 | 4.5%22 resolved |
| IL Illinois | 27 | 0 | 0.0%21 resolved |
| NC North Carolina | 24 | 0 | 0.0%17 resolved |
| OH Ohio | 23 | 0 | Too few6 resolved |
| VA Virginia | 23 | 2 | 14.3%14 resolved |
| NY New York | 22 | 3 | 16.7%18 resolved |
| FL Florida | 21 | 3 | Too few9 resolved |
| PA Pennsylvania | 21 | 0 | 0.0%13 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (6)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
SBA loans charge off at 7.0% on 229 resolved loans, below the Education median of 11.9% (21 brands).
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 83/100 (category median 55); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health NeutralNo going-concern doubt
- Unit economics HelpsAvg gross sales $2.2M on a $800K investment midpoint, 2.7x (gross sales, not profit); an Item 19 earnings figure of $534K also counts
- Unit growth Helps+37 franchised outlets over the two years to 2025 (326 to 363, +11.3% in total, +5.5% a year compounded); turnover 1.1%
- Scale Helps363 franchised units, +1 company-owned (364 in all)
- Legal Helps4 matters naming the franchisor among the Item 3 matters we list (1.1 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; no franchisor financial figures on file
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Kiddie Academy has been party to franchise-relationship disputes: uncured defaults/relocation dispute (Radoste, settled 2017); trademark/copyright infringement after termination (Sumanth/Wonder World Learning, settled 2021); post-termination trademark dispute (Sierra Learning Academy, settled 2019, franchisee allowed transfer + partial refund); pending 2024 suit against former franchisee (Paradise Organization Corp.) for copyright infringement, breach of contract/guaranty, and trade secrets violations after removal of marks post-termination.
Bankruptcy (Item 4)
None disclosed
Litigation case detail4 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Kiddie Academy Domestic Franchising, LLC v. Paradise Organization Corp., Sonu Chadha and Deepak Chadha
pendingBrought against a franchisee · filed 2024-04-23 · U.S. District Court for the Eastern District of New York · 2:24-cv-02864-JRB-JMW
“… (U.S. District Court for the Eastern District of New York, Case #2:24-cv-02864- JRB-JMW) On April 23, 2024, the Franchisor filed a complaint against the”Page 17 of the 2026 FDD, Item 3
Concluded (3)
Sierra Learning Academy, Inc. v. Kiddie Academy Domestic Franchising, LLC
settledBrought by a franchisee · filed 2018-11-16 · District Court for San Bernardino County, California · 3 CIVDS 1830239
“… District Court for San Bernardino County, California, Civil Action 3 CIVDS 1830239.”Page 17 of the 2026 FDD, Item 3
Kiddie Academy Domestic Franchising, LLC v. Supriya Sumanth, Sumanth Nandagopol, and Wonder World Learning, LLC
settledBrought against a franchisee · filed 2017-11-16 · U.S. District Court for the District of Maryland · 1:17-cv-03420-MJG
“… U.S. District Court for the Northern District of Maryland, Case #1:17-cv-03420-MJG.”Page 16 of the 2026 FDD, Item 3
Outcome: “The action was subsequently settled pursuant to an agreement executed on or about May 28, 2021, pursuant to which neither party admitted fault or paid any damages.”
Kiddie Academy Domestic Franchising, LLC v. Radoste, LLC (AAA); Radoste, LLC v. Kiddie Academy Domestic Franchising, LLC
settledBrought against a franchisee · filed 2016-07-06 · American Arbitration Association; Superior Court of New Jersey, Monmouth County · AAA 01-16-0002-7226; L-000089
“Kiddie Academy Domestic Franchising, LLC v. Radoste, LLC, American Arbitration Association, AAA Case # 01-16-0002-7226. This action was filed on July 6, 2016.”Page 16 of the 2026 FDD, Item 3
Outcome: “The matter was settled pursuant to an agreement executed on or about February 22, 2017. Franchisor admitted no fault or other wrongdoing.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | Yes |
| Territory radius | 1 mi |
| Territory population | 50,000 |
| Online sales rights | Reserved by franchisor |
| Franchisor can compete | Yes |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 20 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | Maryland |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 96 hrs
- On-the-job training
- 32 hrs
- Training location
- Abingdon, Maryland (corporate office/Academy) plus online/virtual
- Ongoing training
- Required
- Site selection
- franchisee with franchisor review/acceptance
- Franchisor financing
- Not offered
- Item 10
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
361 current outlets listed, run by 281 franchisee companies
Each record has the franchisee (company or owner name as the filing prints it), phone number, city and state. 361 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 361 of the 363 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Kiddie Academy franchise?
Per the 2026 FDD, the total investment to open a Kiddie Academy franchise ranges from $590K to $1.0M, with an initial franchise fee of $150K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Kiddie Academy franchise owners earn?
According to Item 19 of the Kiddie Academy FDD, average gross sales were $2.2M (Item 19 group “2025 Mature Academies (Average)”, 293 outlets; gross sales, not profit). The median is $2.1M. What an owner keeps depends on location, operating costs and management.
Who owns Kiddie Academy?
Kiddie Academy is franchised by Kiddie Academy Domestic Franchising, LLC. Its parent company is Essential Brands, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Kiddie Academy 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 Kiddie Academy FDD and qualifies whose outlets they describe.
What is Kiddie Academy's franchise failure rate?
There is no published franchise failure rate. What is measurable is Kiddie Academy's SBA charge-off rate: 7.0% on 229 resolved loans. Put plainly: 1 in 14 SBA 7(a) loans to Kiddie Academy owners charged off (16 of 229 resolved loans, approved since FY1991); loans approved FY2014–FY2023: 4 of 146 resolved loans charged off (2.7%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Kiddie Academy franchise locations are there?
Per the 2026 FDD, Kiddie Academy has 363 franchised units and 1 company-owned (364 in all). In the latest year, the number of franchised outlets grew by 19 (23 opened, 4 closed).
Is Kiddie Academy a good franchise to buy?
FranchiseVerdict gives Kiddie Academy an A Verdict grade (Strongest tier) with a verdict score of 83 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by unit economics (avg gross sales $2.2M on a $800K investment midpoint, 2.7x: gross sales, not profit), unit growth, scale, legal record and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
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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.