Kiddie Academy

Kiddie Academy, a Kiddie Academy Domestic Franchising franchise, has been franchising since 1992 — 11 years after the concept was founded in 1981 , currently with 300 total locations in the education sector, headquartered in MD. According to the 2024 FDD, the total initial investment ranges from $491K to $900K — a 83% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $100K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 7.0% of gross sales with an additional 2.0% national advertising fund contribution, bringing the combined ongoing cost to 9.0% of every dollar in sales. Critically, Kiddie Academy does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $2.0M, meaning the typical unit pays roughly $140K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Kiddie Academy added units at a 5.0% net rate year-over-year (20 openings, 5 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.