Bottom line
- Total investment $436K – $881K including a $65K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $560K/year.
- Rated MODERATE with a risk score of 65/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Little Kitchen Academy unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Little Kitchen Academy units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$784K
on $3.9M purchase
Total debt
$3.1M
SBA $2.0M + senior + seller note
Overview
About
Little Kitchen Academy operates children's culinary education centers offering cooking classes, camps, and birthday parties for kids. Franchisees manage facility operations, instructor hiring/training, class scheduling, event marketing, and direct parent/customer engagement in their protected territories.
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 12 · 2 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.
2
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage franchisor with minimal operating units, undisclosed profitability, and insufficient franchisee base for meaningful validation—investment viability cannot be assessed without Item 19 financials.
Score breakdown · what drove the 65 / 100 rating
- 01MINOROnly 2 existing units with unknown growth trajectory suggests minimal track record and severe scalability concerns
- 02MEDNet income not disclosed in FDD Item 19 makes ROI analysis impossible; average revenue of $560k may not translate to viable owner income
- 03MINORWide investment range ($436k-$881k) with vague cost allocation raises transparency concerns and suggests inconsistent build-out standards
- 04MED6% royalty on gross sales (not net) combined with non-disclosed profitability creates cash flow risk
- 05MEDExtremely limited franchisee base (2 units) makes validation difficult and indicates franchisor may be pre-revenue or in early survival mode
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
4 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Little Kitchen Academy · FDD (2025) PDF