KidzArtFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A KidzArt franchise requires a total initial investment of $58K – $72K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $306K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $58K – $72K
- 10th pct Home Services
- Avg gross sales
- $306K
- 7th pct Home Services
- Royalty
- 8.0%
- 38th pct Home Services
- Units
- 12
- 21st pct Home Services
- SBA default
- 50.0%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 4.7x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 13 to 11 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $58K – $72K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $306K/year (median $156K).
- Verdict A (Top Quintile) with a risk score of 37/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- KidzArt LLC
- Incorporated in
- NV
- HQ
- 11820 Norfolk Rd. Lake Cormorant, MS. 38641
- Auditor
- Lally Group, PC
- Audited financials
- Franchisor revenue
- $382K
- vs $451K prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
KidzArt franchisees operate art instruction centers offering classes, camps, and workshops for children. Day-to-day operations include scheduling classes, teaching or managing instructors, managing student enrollment, and handling facility operations. Revenue derives from class tuition, seasonal camps, birthday parties, and retail art supply sales.
- CEO
- Robert R. Denton
- Founded
- 2002
- FDD year
- 2026
- States available
- 8
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $500 | $3K |
| Equipment, build-out, other | $8K | $20K |
| Total initial investment | $58K | $72K |
Source: KidzArt 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$31K
10.0% margin
Unlevered ROIC
46%
EBITDA / total invested capital
Payback
26 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $58K – $72K
- Better than avg vs category
- Liquid capital req'd
- $500 – $3K
- Better than avg vs category
- Franchise fee
- $50K – $55K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 54.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $45 |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Inventory (initial) | $2K – $2K |
| Total fee load | 54.0% of rev |
At 54.0% total fee load, roughly $165K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $306K
- Per unit, per year
- Median gross sales
- $156K
- Item 19 type
- gross_sales
- Sample size
- 10 units
- vs category median 25 · small
- Range (low → high)
- $21K→$1.0M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
Revenue is 4.7x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How KidzArt Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 0
- Last reporting year
- Closed
- 1
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- -15.4%
- Net unit change last year
- 3-yr CAGR
- -15.4%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 84.6%
- Units that stayed open
- Termination rate
- 9.1%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $148K
- Median loan
- $37K
- 50th percentile
- Charge-off rate
- 50.0%
- 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)
- 50.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into KidzArt's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting system with going concern uncertainty, opaque profitability, and unsustainable unit economics raises serious viability concerns.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Lally Group, PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 37 / 100 rating
- 01MEDSystem contracting sharply: 15.4% unit decline YoY (12 units) indicates franchisee attrition and potential model stress
- 02HIGHGoing Concern status is FALSE — franchisor may face existential financial or operational challenges
- 03MEDNet Income not disclosed in Item 19 — impossible to assess actual franchisee profitability; $305k avg revenue is meaningless without expense data
- 04MINORHigh franchise fee ($49,500) relative to system size (12 units) suggests weak recruitment momentum and potential franchisor cash flow dependency
- 05MINOR8% royalty on gross revenue is punitive if net margins are thin — high leverage to royalty burden without profitability transparency
- 06MINORTiny, shrinking franchise system (12 units) lacks scale, peer support network, and vendor leverage; high franchise failure risk
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Household demographics |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Mississippi |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- QuickBooks
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KidzArt · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KidzArt franchise?
The total investment to open a KidzArt franchise ranges from $58K – $72K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KidzArt franchise owners earn?
According to Item 19 of the KidzArt FDD, the average gross sales per unit is $306K. The median is $156K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is KidzArt's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KidzArt (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 KidzArt franchise locations are there?
As of their most recent FDD filing, KidzArt has 12 total units in the United States, including 13 franchised units and 1 company-owned units.
Is KidzArt a good franchise to buy?
FranchiseVerdict rates KidzArt as a A-grade franchise with a risk score of 37 out of 100, 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.
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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.