Wushu Central’s Kung Fu Kids
Bottom line
- Total investment $214K – $397K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $943K/year (median $1.0M). Estimated payback in 1.7 years.
- Rated MODERATE with a risk score of 60/100.
- 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
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 Wushu Central’s Kung Fu Kids unit return on the cash you put in?
Unlevered ROIC · per unit
72%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Wushu Central’s Kung Fu Kids units return on equity?
Equity IRR · 5-yr
29.9%
3.71× MOIC
Year-1 DSCR
2.69×
EBITDA ÷ debt service
Equity required
$8.5M
on $19.3M purchase
Total debt
$10.8M
SBA $5.0M + senior + seller note
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.
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 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 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
Micro-system with unproven unit economics, going concern issues, and inadequate disclosure creates significant capital risk for franchisees.
Score breakdown · what drove the 60 / 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
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wushu Central’s Kung Fu Kids · FDD (2025) PDF