KidsPark Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
KidsPark is a childcare franchise offering hourly, drop-in supervised play and childcare for young kids. Franchisees run the centers, managing staff, play activities, and hourly and party bookings.
FranchiseVerdict summary · 2026
A KidsPark franchise requires a total initial investment of $299K – $527K, including a $4K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $496K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $299K – $527K
- 56th pct Education
- Avg gross sales
- $496K
- 18th pct Education
- Royalty
- 5.0%
- 2nd pct Education
- Units
- 20
- 41st pct Education
- SBA charge-off
- N/A
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 $299K – $527K including a $4K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $496K/year (median $493K).
- RISKVerdict A (Strongest tier), verdict score 63/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- KidsPark, Inc.
- Parent company
- None
- CEO title
- Chair of the Board of Directors, Chief Executive Officer, and Chief Financial Officer
- Debra Milner
- Incorporated in
- CA
- HQ
- 812 S. Winchester Boulevard, Suite 150, San Jose, California 95128
- Auditor
- Partners Certified Public Accountants
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.4M prior year
Overview
About
- CEO
- Debra Milner
- Headquarters
- CA
- Founded
- 1988
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 38% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee, Initial Support Fee, Franchise Center Design Fee, Pre-Opening Training Fee, and Opening Support Feenot refundable | $30K | $30K | |
| Premises lease | $16K | $36K | |
| Leasehold improvements | $80K | $180K | |
| Architect Fees | $12K | $20K | |
| Fixtures | $70K | $120K | |
| Start-up Inventory & Furniture | $14K | $20K | |
| Computer System | $3K | $5K | |
| Marketing & Grand Opening/Open House | $5K | $15K | |
| Utility deposits, business licenses, insurance and other prepaid expenses | $8K | $15K | |
| Travel and living expenses while attending training course | $1K | $4K | |
| Additional funds and working capital - first 3 months of operation | $55K | $72K | |
| Total initial investment | $293K | $517K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $299K – $527K
- Middle of category vs category
- Liquid capital req'd
- $55K – $72K
- Middle of category vs category
- Franchise fee
- $4K – $4K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Training fee | $8K |
| Transfer fee | $10K |
| Renewal fee | $1K |
| Inventory (initial) | $14K – $20K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 38% below the education norm.
Source: FDD 2025 · 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
$74K
15.0% margin
Unlevered ROIC
16%
EBITDA / total invested capital
Payback
6.4 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 KidsPark unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
16%
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 KidsPark units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$794K
on $4.0M purchase
Total debt
$3.2M
SBA $2.0M + 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: 2025 FDD
Financial Performance
- Avg gross sales
- $496K
- Per unit, per year
- Median gross sales
- $493K
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
- Sample size
- 18 outlets
- vs category median 17
- Range (low → high)
- $284K→$773K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 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 $496K/year in gross sales. Revenue-to-investment ratio: 1.2x.
Fee burden
Total ongoing fee load of 8.0% — below the Education average of 10.6%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -5.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 KidsPark Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 20
- Opened
- 1
- Last reporting year
- Closed
- 2
- Turnover rate
- 15.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
- Net growth (3-yr)
- -5.0%
- Net unit change over 3 years
- 3-yr CAGR
- -5.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 12 · 9 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
9
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $2.1M
- Median loan
- $270K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (8 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
KidsPark presents caution-level risk due to declining unit count, lack of financial transparency, and tight profit margins relative to capital requirements.
Litigation (Item 3)
No litigation or other dispute resolution required to be disclosed. See California Addendum to Disclosure Document in Exhibit D.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Partners Certified Public Accountants
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 63 / 100 verdict
- 01MINORUnit count declining 5% YoY (20 units) suggests franchisee attrition and potential system weakness
- 02MINORNo Item 19 financial performance disclosure limits transparency on earnings claims and actual franchisee profitability
- 03MINORNet income of $86,982 on $496,293 revenue (17.5% margin) is modest and may not justify $299k-$526k investment plus working capital
- 04MINORHigh investment relative to annual net profit creates extended payback period (3.4-6.1 years at net income level)
- 05MINOR5% royalty on gross receipts (not net) means fees paid regardless of profitability, adding financial pressure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 20 days |
| Mandatory arbitration | Yes |
| Arbitration location | San Jose, California (county of franchisor headquarters) |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation or other dispute resolution required to be disclosed. See California Addendum to Disclosure Document in Exhibit D.
Items 10, 11
Training & Operations
- Classroom training
- 59 hrs
- On-the-job training
- 46 hrs
- Training location
- Webinar; San Jose, California corporate office; franchisee's center
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- KidsPark Center Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: KidsPark Center Management System
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KidsPark · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KidsPark franchise?
The total investment to open a KidsPark franchise ranges from $299K – $527K, with an initial franchise fee of $4K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KidsPark franchise owners earn?
According to Item 19 of the KidsPark FDD, the average gross sales per unit is $496K. The median is $493K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the KidsPark 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 KidsPark FDD and qualifies whose outlets they describe.
What is KidsPark's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KidsPark (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 KidsPark franchise locations are there?
As of their most recent FDD filing, KidsPark has 20 total units in the United States, including 19 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is KidsPark a good franchise to buy?
FranchiseVerdict rates KidsPark as a A-grade franchise with a verdict score of 63 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
Are you the franchisor?
If you represent KidsPark, you can request corrections or provide updated information.
Other Education franchises
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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.