How much does it cost to open a Kiddie Academy franchise?

The total initial investment for a Kiddie Academy franchise ranges from $405,000 to $915,000. This includes the franchise fee of $150,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Kiddie Academy franchise?

Kiddie Academy franchisees pay a 7.0% royalty fee and a 2.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Kiddie Academy franchise?

Kiddie Academy does not disclose financial performance data (Item 19) in their FDD. Revenue and profitability figures are not publicly available from the franchisor.

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Childcare

Kiddie Academy Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$405,000 – $915,000

Franchise Fee

$150,000

Royalty Rate

7.0%

Initial Investment Range

Low: $405,000 High: $915,000

The total initial investment to open a Kiddie Academy franchise ranges from $405,000 to $915,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $150,000.

Midpoint estimate: $660,000

Franchise Fee

$150,000

One-time initial fee

The Kiddie Academy franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Kiddie Academy brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

7.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalties	7.0	PCT	Gross Revenues include all revenues from services and/or products related to the Franchised Business, excluding taxes collected from customers. Due Monday of each week on revenues generated during the week that ended nine days earlier. Paid by automatic electronic bank transfer. New Franchisees opening their first Academy receive a 50% reduction (3.5% instead of 7%) for the first six months.
Brand Building Fund	2.0	PCT	Due Monday of each week on revenues generated during the week that ended nine days earlier. Paid by automatic electronic bank transfer in the same manner as Royalties.
Right to Audit for Revenue Compliance	N/A	VARIABLE	If audit reveals underpayments: franchisee pays underpayment amount plus interest at 2% above prime rate (or maximum rate permitted by law, whichever is less). If underpayments exceed 3%: franchisee also pays greater of audit costs or $10,000, plus 10% of amount owed. If audit conducted due to failure to supply required records after default: franchisee pays audit costs plus any amounts owed. Due immediately upon receipt of audit report.
Failure to Comply with the Franchise Agreement	1000.0	FIXED	$1,000 for each failure to comply. Due immediately. Paid via electronic bank transfer.
Relocation of Kiddie Academy Franchise	30000.0	FIXED	Payable when franchisee relocates Franchised Business to another site. Due the date Franchised Business opens at its new location.
Administrative Fee from Transferee	50000.0	VARIABLE	$50,000 payable by transferee of full or partial interest. Reduced to $25,000 if transferee is party to one or more existing franchise agreements with Franchisor. Payable on date of transfer. Fee may vary at Franchisor's discretion.
Referral fee (sale of business)	5.0	VARIABLE	Lesser of $75,000 or 5% of sales price (minimum $10,000). Payable if franchisee sells business to existing/former Kiddie Academy franchisee, franchise applicant, or Director of existing academy. Due on date of transfer. Fee may vary at Franchisor's discretion.
Interest on Late Payments	1.5	VARIABLE	Maximum rate allowed by law (or, in absence of such rate, 1.5% per month). Applied to all late payments until obligation is paid in full. Due simultaneously with all amounts that are late.
Director Training (at Franchisor's corporate office)	2500.0	FIXED	One training session per year is included at no charge. Franchisor reserves right to charge $2,500 for each additional Director attending training program in a given year. Franchisee responsible for all travel and living expenses.
Fees/Interest for Failure to Repair Academy	N/A	VARIABLE	Payable if Franchisor performs repair or refurbishment of Franchised Business. Due within seven days of invoice. Paid via electronic bank transfer.
Late Charge on Late Payments	10.0	PCT	Up to 10% of amount of each late payment. Applied to all sums not paid in full when due. Due simultaneously with late payment. Interest begins from date payment is due.
Annual Franchisee Conference	1500.0	FIXED	$1,500 per Academy if franchisee does not attend at least once every other year. Billed as incurred.
Replacement of Manuals	500.0	FIXED	$500 per volume if replaced in hard copy by Franchisor. No charge if franchisee replaces using online access to Manuals. Due upon replacement. Paid via electronic bank transfer.
Liquidated Damages	N/A	VARIABLE	If Franchise Agreement terminated before end of term, franchisee pays liquidated damages calculated as average weekly Royalty and Brand Building fees over prior 156 weeks multiplied by 156 weeks (or number of weeks remaining in term, if shorter). Due upon termination.
Enforcement Costs	N/A	VARIABLE	Payable if franchisee violates term or condition in Franchise Agreement and Franchisor incurs costs to enforce it. Due as incurred.
Network Equipment	N/A	VARIABLE	If franchisee does not purchase or install required Network Equipment, Franchisor may purchase and install it and charge cost plus 25% administrative fee. Billed as incurred.

What You Get

Financial Performance (Item 19)

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

+58 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	286	+22	—	—	305
2023	305	+23	—	—	326
2024	326	+22	—	—	344

Is a Kiddie Academy Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Kiddie Academy franchise opportunity:

Overall Score

72/100

Strong opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Low

0.0% annual closure rate

Kiddie Academy scores well across our evaluation criteria, indicating a strong franchise system. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.