Montessori Kids Universe Franchise Cost, Revenue & Review 2026
- Investment
- $782K – $1.7M
- Disclosed sales
- $1.3M
- gross sales, not profit
- SBA charge-off
- 9.1%
- on 40 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Montessori Kids Universe is an early education franchise operating Montessori-based preschools and childcare centers. Franchisees run the schools, managing teachers, curriculum, enrollment, and licensing compliance.
FranchiseVerdict summary · 2026
A Montessori Kids Universe franchise requires a total initial investment of $782K – $1.7M, including a $75K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.3M[2]. SBA 7(a) loans show a 9.1% charge-off rate across 40 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: 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
- Investment
- $782K – $1.7M
- 68th pct Education
- Avg gross sales
- $1.3M
- 27th pct Education
- Royalty
- 7.0%
- 21st pct Education
- Units
- 19
- 39th pct Education
- SBA charge-off
- 9.1%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · 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 $782K – $1.7M including a $75K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.4M).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better). SBA loan charge-off rate of 9.1% across 40 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative, pipeline stalled: 27 agreements signed but not yet open against 19 open outlets (Item 20).
- FLAG3 units terminated last reporting year (15.8% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Montessori School Franchising LLC
- CEO title
- Co-Founder, Manager and CEO
- Nancy P. Boehm
- CEO experience
- 2012 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- FL
- HQ
- 4521 PGA Boulevard, Suite 156, Palm Beach Gardens, Florida 33418
- Auditor
- DASH Business Solutions, LLC
- Audited financials
- Franchisor revenue
- $2.1M
- vs $2.1M prior year
Overview
About
- CEO
- Nancy P. Boehm
- Headquarters
- FL
- Founded
- 2012
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 536% above the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown24 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $75K | |
| Architect/Space Planner | $10K | $50K | |
| Build Out and Leasehold Improvements | $300K | $750K | |
| Playground Design, Surfacing, Equipment and Fencing | $95K | $150K | |
| Furniture, Fixtures, Decor and Montessori Materials for 3 classrooms | $150K | $350K | |
| Office Furniture and Equipment | $3K | $5K | |
| Signagenot refundable | $5K | $15K | |
| Computers and Tablets | $5K | $8K | |
| Internal Camera System | $7K | $9K | |
| New Owner Training, per person attending | — | — | |
| Montessori Teacher Training | $750 | $750 | |
| Children and Staff Uniforms | $800 | $2K | |
| Rent / Security Deposit | $25K | $35K | |
| Lease Guarantee Feenot refundable | $0 | $30K | |
| Pre-Opening Marketing Campaign | $2K | $3K | |
| ProCare Management Software, License and Training | $129 | $129 | |
| Line Leader CRM System | $179 | $179 | |
| Montessori Compass Record Keeping and Assessment Software | $250 | $750 | |
| Utility Deposits | $250 | $500 | |
| Insurance | $2K | $2K | |
| Total initial investment | $782K | $1.7M |
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
- $782K – $1.7M
- Bottom third — review vs category
- Liquid capital req'd
- $100K – $200K
- Bottom third — review vs category
- Franchise fee
- $75K – $75K
- Bottom third — review vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $38K |
| Renewal fee | $38K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 219% above the education norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Montessori Kids Universe until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.4M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Montessori Kids Universe unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- $1.3M
- Per unit, per year
- Median gross sales
- $1.4M
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
- 16 outlets
- vs category median 16
- Range (low → high)
- $770K→$2.0MCited, not corroborated — printed on page 44 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
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 $1.3M/year in gross sales. Median ($1.4M) exceeds the average — distribution is bottom-heavy but most units perform well. Revenue-to-investment ratio: 1.1x.
Fee burden
Total ongoing fee load of 7.0% — below the Education median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 18.8% CAGR over 3 years across 19 units — operators are staying and new ones are joining.
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 medians
How Montessori Kids Universe 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.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19
- Opened
- 3
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 15.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +18.8%
- Net unit change over 3 years
- 3-yr CAGR
- +18.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 27
- 1.42 per open outlet · Item 20 Table 5
- Projected new
- 17
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Where the owners are · Item 20 owner list
47 current owners across 17 states.
- TX 10
- FL 5
- IL 5
- VA 4
- OH 3
- AL 2
- CA 2
- CT 2
- MA 2
- NC 2
- NJ 2
- PA 2
- +5 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 40
- Loan volume
- $29.9M
- Median loan
- $325K
- 50th percentile
- Charge-off rate
- 9.1%
- on 40 loans · 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)
- 90.9%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 18
- Defaults
- 1
- Typical loan rate
- 7.6%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- brand above franchise avg ↑
- Jobs supported
- 598
- 3.1 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 88% went to startups / new businesses, 12% to established operators
Franchise vs independent — in child day care services, franchised businesses charge off at 5.3% vs 13.0% for independents — franchising is associated with 59% lower SBA default risk in this category.
Top lenders financing Montessori Kids Universe franchisees
Showing 3 of 18 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Montessori Kids Universe from SBA 7(a) FOIA data.
- Principal loss rate
- 0.3%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.56%
- Avg chargeoff amount
- $59K
- Lender concentration
- 9.7%
- Job velocity
- 3.1 per $100K
- NAICS benchmark
- 2.3%
- NAICS 624410
- Jobs supported
- 598
Top SBA lendersTop lender holds 10% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Cadence Bank | 3 | $777K | 33.3% |
| 2 | Stearns Bank National Association | 3 | $780K | 0.0% |
| 3 | Sunflower Bank National Association | 3 | $1.3M | N/A |
| 4 | T Bank, National Association | 3 | $5.3M | N/A |
| 5 | Peoples Bank | 2 | $225K | 0.0% |
| 6 | Manufacturers and Traders Trust Company | 2 | $420K | 0.0% |
| 7 | Community Bank of Mississippi | 2 | $570K | 0.0% |
| 8 | Byline Bank | 2 | $3.2M | N/A |
| 9 | Midwest Regional Bank | 2 | $1.4M | N/A |
| 10 | The Fahey Banking Company | 2 | $1.0M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 11 | 0 | 0.0% |
| VAVirginia | 6 | 0 | 0.0% |
| OHOhio | 4 | 0 | 0.0% |
| ALAlabama | 3 | 0 | 0.0% |
| NJNew Jersey | 2 | 1 | 50.0% |
| FLFlorida | 1 | 0 | -- |
| ILIllinois | 1 | 0 | -- |
| KYKentucky | 1 | 0 | -- |
| MAMassachusetts | 1 | 0 | -- |
| NCNorth Carolina | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 9.1% — 43% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
1) Virginia SCC enforcement action for unregistered franchise sales, settled 2017 with $15,000 penalty; dismissed 2020. 2) Former franchisee arbitration (Panjwani/4Qul) alleging FDUTPA, TDTPA, fraud, and breach of contract; settled for $70,000.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 total revenues of $2,105,993 comprised Franchise Fees $769,135, Royalties $1,334,280, Marketing Revenue $1,378, and Other Revenue $1,200. Technology Fees of $109,337 (5.19% of total revenue) noted in Item 6.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 50 / 100 verdict
- 01HIGHTwo settlements within 3 years (2017 & 2019) indicating systemic compliance and ethics issues, including fraud allegations
- 02MINOROnly 19 units with unknown growth trajectory suggests stagnant or declining system; minimal scale for support infrastructure
- 03MEDHigh initial investment ($782K–$1.7M) relative to disclosed average revenue ($1.3M) leaves razor-thin margins before 7% royalty, rent, and labor
- 04HIGH2019 fraud and deceptive trade practices settlement indicates franchisees have pursued legal action for misrepresentation
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 75,000 |
| 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 | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Palm Beach County, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 2 |
View Item 3 litigation summary
1) Virginia SCC enforcement action for unregistered franchise sales, settled 2017 with $15,000 penalty; dismissed 2020. 2) Former franchisee arbitration (Panjwani/4Qul) alleging FDUTPA, TDTPA, fraud, and breach of contract; settled for $70,000.
Items 10, 11
Training & Operations
- Classroom training
- 116 hrs
- On-the-job training
- 6 hrs
- Training location
- Virtual (online training platform); on-site readiness assessment at franchisee location
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval; franchisor network of brokers required
- Franchisor financing
- Not offered
- Item 10
- POS system
- ProCare
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProCare
Item 20 · call current owners
Franchisee Contacts
48 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Montessori Kids Universe franchise?
The total investment to open a Montessori Kids Universe franchise ranges from $782K – $1.7M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Montessori Kids Universe franchise owners earn?
According to Item 19 of the Montessori Kids Universe FDD, the average gross sales per unit is $1.3M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Montessori Kids Universe?
Montessori Kids Universe is franchised by Montessori School Franchising LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Montessori Kids Universe 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 Montessori Kids Universe FDD and qualifies whose outlets they describe.
What is Montessori Kids Universe's franchise failure rate?
Based on SBA 7(a) loan data, Montessori Kids Universe has a charge-off rate of 9.1% across 40 loans, meaning 9.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Montessori Kids Universe franchise locations are there?
As of their most recent FDD filing, Montessori Kids Universe has 19 total units in the United States, including 19 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Montessori Kids Universe a good franchise to buy?
FranchiseVerdict rates Montessori Kids Universe as a B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.