Bottom line
- Total investment $448K – $600K including a $45K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $721K/year.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 60 loans (below the industry average).
- System growing at 132.7% CAGR over 3 years with 131 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 KIDSTRONG® unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 KIDSTRONG® units return on equity?
Equity IRR · 5-yr
32.8%
4.13× MOIC
Year-1 DSCR
2.46×
EBITDA ÷ debt service
Equity required
$6.3M
on $16.1M purchase
Total debt
$9.8M
SBA $5.0M + senior + seller note
Overview
About
KIDSTRONG franchisees operate children's fitness and wellness facilities offering strength training, functional movement, and health education programs. Day-to-day operations involve teaching group and individual fitness classes, managing membership/client relationships, scheduling instructors, maintaining facilities, and potentially offering nutritional or wellness coaching to children and 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 · 31 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
KIDSTRONG presents moderate-to-caution risk: lack of net income transparency combined with high capital requirements and rapid growth raises questions about unit profitability and franchisor financial health despite no litigation.
Score breakdown · what drove the 44 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents accurate ROI analysis and profitability verification
- 02MINORHigh initial investment ($448k-$600k) against average revenue of $721k creates tight margin for profitability
- 03MINORRoyalty increases from 7% to 8.5% after 24 months reduces long-term cash flow predictability
- 04MINORRapid 36% YoY unit growth may indicate aggressive recruitment over franchisee success sustainability
- 05HIGHNo 'going concern' status suggests potential franchisor financial instability or recent operational challenges
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
KIDSTRONG® · FDD (2025) PDF