FranchiseVerdict
WorldKids School logo
FV-03001·MODERATEExcellent95

WorldKids School

Education - Tutoring & Test PrepFranchising since 2024Website
Investment
$378K – $3.8M
82nd pct Tutoring & Te…
Avg revenue
$1.9M
49th pct Tutoring & Te…
Royalty
6.0%
3rd pct Tutoring & Te…
Units
10
39th pct Tutoring & Te…
SBA default

Bottom line

  • Total investment $378K – $3.8M including a $80K franchise fee, 6.0% ongoing royalty.
  • Average unit revenue of $1.9M/year (median $1.2M). Estimated payback in 4.7 years.
  • Rated MODERATE with a risk score of 65/100.
  • Emerging franchise — only 2 years of franchising with 10 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
WKAF LLC
Incorporated in
Washington
HQ
6523 California Avenue SW, Seattle, WA 98136
Auditor
Kezos & Dunlavy
Audited financials
Franchisor revenue
$0
vs $4K prior year

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 WorldKids School unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,920,699
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $378K–$3.8M
Working capital
$
FDD reports $50K–$175K

Unlevered ROIC · per unit

13%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$288K
EBITDA margin
15.0%
Total invested
$2.2M
Payback
92 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 WorldKids School units return on equity?

Edit assumptions

Equity IRR · 5-yr

33.7%

4.28× MOIC

Year-1 DSCR

2.40×

EBITDA ÷ debt service

Equity required

$5.8M

on $15.4M purchase

Total debt

$9.6M

SBA $5.0M + senior + seller note

SBA 7(a) request ($7.7M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

WorldKids School franchisees operate early childhood education centers providing preschool, pre-K, and kindergarten services. Day-to-day operations include classroom instruction, parent communication, staff management, curriculum delivery, and compliance with educational/childcare licensing standards. Revenue is generated through tuition fees from enrolled families.

CEO
Nicole Chaudry
Founded
2024
FDD year
2026
States available
1

Item 7 · what it costs

The Vitals

Total investment
$378K – $3.8M
All-in to open one unit
Liquid capital
$50K – $175K
Cash you must have on hand
Franchise fee
$80K
Royalty
6.0%
6% of Gross Revenue · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical
Payback period
4.7 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.9M
Per unit, per year
Median gross sales
$1.2M
Item 19 type
Affiliate Company Store Historic performance
Sample size
8 units
vs category median 12
Range (low → high)
$537K$4.3M
Cohort dispersion
Transparency
8 / 5
vs category median 4 / 5 · above
Revenue rank49th
vs Education - Tutoring & Test Prep peers
Investment cost rank82th
Lower investment ranks lower (better)
Royalty rate rank3th
Lower royalty = lower percentile (better)
Unit count rank39th
vs Education - Tutoring & Test Prep peers
Risk score rank74th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
10
Opened
2
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
10
Corporate units in the system
% franchised
0%
vs corporate-owned
2024
0+2
Franchised units
2025
0
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 16 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

WorldKids School presents elevated risk due to Going Concern status, minimal system scale, opaque unit performance variance, and questionable franchisee profitability relative to initial capital requirements.

Score breakdown · what drove the 65 / 100 rating

  1. 01HIGHGoing Concern issue indicates franchisor financial distress or instability
  2. 02MINOROnly 10 units with unknown growth trajectory suggests stalled or contracting system
  3. 03MINORMassive investment range ($378K-$3.8M) indicates unclear unit economics or high variance in performance
  4. 04HIGHNo litigation disclosure combined with Going Concern raises transparency concerns
  5. 05MINORAverage net income of $451K on $1.92M revenue (23.5% margin) may not support debt servicing for initial investment

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Washington

Item 11

Training & Operations

Classroom training
30 hrs
On-the-job training
30 hrs
POS system
Procare/Tuition Express
Operating tech stack

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

18 numbers

Locked
(701) 328-••••
ND
(605) 773-••••
SD
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

WorldKids School · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above