Wushu Central’s Kung Fu KidsFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Wushu Central’s Kung Fu Kids franchise requires a total initial investment of $214K – $397K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $889K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $214K – $397K
- 42nd pct Health & Fitn…
- Avg gross sales
- $889K
- 45th pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 3
- 16th pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness 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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
59% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $214K – $397K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $889K/year, with an estimated 59% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 26/100.
- Emerging franchise: only 1 year of franchising with 3 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- KUNG FU KIDS FRANCHISE LLC
- Parent company
- Wushu Central Inc.
- CEO title
- Chief Executive Officer
- David Chang
- CEO experience
- 22 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 879 Coleman Avenue, #40, San Jose, California, 95110
- Auditor
- DA Advisory Group PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Wushu Central's Kung Fu Kids operates martial arts instruction centers focused on children's kung fu training. Franchisees manage class schedules, instructor hiring/training, student enrollment, and facility operations. Revenue streams include monthly membership fees, trial classes, belt testing fees, and summer camps.
- CEO
- David Chang
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $60K |
| Equipment, build-out, other | $114K | $287K |
| Total initial investment | $214K | $397K |
Source: Wushu Central’s Kung Fu Kids 2025 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
$244K
27.5% margin
Unlevered ROIC
68%
EBITDA / total invested capital
Payback
18 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $214K – $397K
- Near category avg vs category
- Liquid capital req'd
- $50K – $60K
- Below avg, review vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 10.5%
- vs 9–13% typical
- Payback period
- 1.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $199 |
| Transfer fee | $66 |
| Renewal fee | $15 |
| Total fee load | 10.5% of rev |
Financial Performance
- Avg gross sales
- $889K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $179K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 58.5%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historic - Affiliate Owned
- Sample size
- 3 units
- vs category median 11 · small
- Range (low → high)
- $415K→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Wushu Central’s Kung Fu Kids Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
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).
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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Micro-system with unproven unit economics, going concern issues, and inadequate disclosure creates significant capital risk for franchisees.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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: No
Score breakdown · what drove the 26 / 100 rating
- 01MINOROnly 3 existing units with unknown growth trajectory indicates minimal system scale and unproven expansion model
- 02HIGHGoing Concern status is False, suggesting potential financial instability or structural issues at franchisor level
- 03MINORHigh initial investment range ($213.5K-$396.8K) against only 3 reference units limits ability to validate ROI claims
- 04MEDNo Item 19 financial performance representations disclosed; cannot verify if $942K average revenue and $178K net income are achievable or cherry-picked
- 05MINORExtremely small franchisee base (3 units) creates survivorship bias and insufficient data for meaningful financial projections
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 | 7 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic Area |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Arbitration location | Kent County, Delaware |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 51 hrs
- On-the-job training
- 69 hrs
- Training location
- Off-site and On-site
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- POS system
- Spark Membership
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Spark Membership
Item 20 · call current owners
Franchisee Contacts
16 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Wushu Central’s Kung Fu Kids · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Wushu Central’s Kung Fu Kids franchise?
The total investment to open a Wushu Central’s Kung Fu Kids franchise ranges from $214K – $397K, 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 Wushu Central’s Kung Fu Kids franchise owners earn?
According to Item 19 of the Wushu Central’s Kung Fu Kids FDD, the average gross sales per unit is $889K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Wushu Central’s Kung Fu Kids's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Wushu Central’s Kung Fu Kids (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 Wushu Central’s Kung Fu Kids franchise locations are there?
As of their most recent FDD filing, Wushu Central’s Kung Fu Kids has 3 total units in the United States, including 0 franchised units and 3 company-owned units.
Is Wushu Central’s Kung Fu Kids a good franchise to buy?
FranchiseVerdict rates Wushu Central’s Kung Fu Kids as a A-grade franchise with a risk score of 26 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.