Wushu Central’s Kung Fu Kids Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Wushu Central's Kung Fu Kids is a children's martial arts franchise teaching kung fu to kids. Franchisees run the centers, managing instructors, classes, and enrollment.
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $214K – $397K
- 41st pct Health & Fitn…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 8.0%
- 59th pct Health & Fitn…
- Units
- 3
- 15th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · 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 $214K – $397K including a $50K franchise fee, 8.0% ongoing royalty.
- RETURNSItem 19 disclosed $943K average from 3 affiliate-owned outlets. This is franchisor-operated data, not franchisee results.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- FLAGAuditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- 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
- Delaware
- HQ
- 879 Coleman Avenue, #40, San Jose, California, 95110
- Auditor
- DA Advisory Group PLLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
- CEO
- David Chang
- Founded
- 2003
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 47% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $214K – $397K
- Middle of category vs category
- Liquid capital req'd
- $50K – $60K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category 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
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 |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Wushu Central’s Kung Fu Kids did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Wushu Central’s Kung Fu Kids unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
57%
Within the 30–60% "attractive franchise" band
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
Item 19 disclosed $943K average from 3 affiliate-owned outlets. This is franchisor-operated data, not franchisee results.
Company-owned outlets only - not franchisee performance
- Item 19 type
- Historic - Affiliate Owned
- Sample size
- 3
- vs category median 12 · small
- Range (low → high)
- $415K→$1.4M
- Cohort dispersion (min → max)
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.5% — above the Health & Fitness average of 8.4%.
Disclosure
Item 19 reports Historic - Affiliate Owned rather than annual gross sales, so unit revenue is not directly comparable.
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 Health & Fitness averages
How Wushu Central’s Kung Fu Kids Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
The auditor flagged going-concern doubt (Item 21) — the single biggest risk here.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Pre-opening startup (began franchising 2025) with only 3 company-owned units, 0 franchised units, and thin net worth of $99,790. Auditor raised a going-concern note but this is an early-stage franchisor with limited history, so it is treated as minor. No litigation or bankruptcy.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DA Advisory Group PLLC⚠ Going-concern note flagged
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 39 / 100 verdict
- 01MINORPre-opening / brand-new: 0 franchised units, 3 company-owned
- 02MINORGoing-concern note present but early-stage franchisor
- 03MINORThin franchisor net worth $99,790
- 04MEDNo litigation, no bankruptcy, audited Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.5% 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 | 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
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?
Wushu Central’s Kung Fu Kids does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Wushu Central’s Kung Fu Kids 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 Wushu Central’s Kung Fu Kids FDD and qualifies whose outlets they describe.
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 C-grade franchise with a verdict score of 39 out of 100 (higher is better), 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.
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.