2026 FDD Issued Mar 27, 2026 Minnesota Commerce (CARDS) Checked Oct 22, 2026
Kiddie Academy Franchise Cost (2026)
A Kiddie Academy franchise costs an estimated $590,000 – $1,010,000 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $70,000 – $150,000 initial franchise fee (Item 5) and covers this format: Leased Facility. Item 6 lists royalties: 7% of Gross Revenues, subject to the conditions below.
- Total investment
- $590K – $1.01MItem 7 source and qualifications
- Franchise fee
- $70K – $150KItem 5 source and terms
- Royalties
- 7% of Gross RevenuesItem 6 conditions and fee bases apply
- Brand fund
- 2% of Gross RevenuesItem 6 conditions and fee bases apply
- Liquid capital
- $250KFranchisor website, checked October 29, 2026 · See conditions
- Net worth
- $750KFranchisor website, checked October 29, 2026 · See conditions
- Units (2025)
- 364Item 20 source and scope
- Franchise exit rate
- 1% / yrCalculated 3-year average; definition and source
What stands out about Kiddie Academy
The leased-facility Item 7 table includes an unpriced tenant-contribution line. A build-to-suit landlord may bear improvement costs and recover them through rent, while an owner paying for improvements can face extra upfront costs. The printed $590,000 – $1,010,000 estimate should therefore be read with the separate "Varies" row and with the much larger purchased-facility total in mind.
Item 5 spreads the initial fee across site and construction milestones, and reduced fees depend on a named program. Item 6 sets a 7% of Gross Revenues royalty and 2% of Gross Revenues Brand Building Fund charge; a qualifying first Academy can receive a temporary reduced royalty. There is no separate renewal fee, but a transfer can trigger an administrative fee paid by the buyer and a conditional referral charge to the seller.
Item 19 separates mature Academies from newer ramping locations. The displayed mature-group sales and gross profit exclude locations that did not supply full-year results, and the franchisor says it did not audit the submissions. Item 20 shows 23 franchised openings in 2025, alongside exits recorded as non-renewal or other cessation. These historical counts do not establish revenue for a new Academy.
What are the initial franchise fees and financial requirements for Kiddie Academy?
Item 5 lists an initial franchise fee of $70,000 – $150,000 for Kiddie Academy. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Kiddie Academy states these minimums for leasing a facility in most markets; purchasing requires more, and higher-cost markets may require more. These minimums come from the franchisor’s website, not from the FDD, and can change: Kiddie Academy franchise page (checked October 29, 2026).
Item 5 PDF pp. 17-21 lists a standard $150,000 fee paid in four installments. Approved multi-unit and existing-franchisee programs can reduce it to $70,000 or $85,000; the VetFran and target-market programs list $125,000. Only one reduced-fee program applies per agreement. Before a lease or purchase agreement, the franchisee may terminate during the refund period and recover payments less $15,000 if the stated release and notice conditions are met; a franchisor-elected termination during that period can return all paid fees under its stated conditions.
Source: Kiddie Academy 2026 FDD, Item 5, PDF p. 17.
How much does it cost to open a Kiddie Academy franchise? (Item 7)
Source: Kiddie Academy 2026 FDD, Item 7, PDF p. 28.
Item 7 of Kiddie Academy’s 2026 Franchise Disclosure Document estimates the total cost to open one leased facility at $590,000 – $1,010,000. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Total Initial Fee | $70,000 | $150,000 |
| Lease Deposit | $30,000 | $35,000 |
| Tenant Contributions for Improvements and Construction Soft Costs | Varies | Varies |
| Professional Fees and Loan Fees | $30,000 | $50,000 |
| Kitchen Equipment and Supplies | $25,000 | $50,000 |
| Supplies/Equipment for Inside of Academy, Playground, and Online Training Component | $125,000 | $195,000 |
| Outdoor Fixed Playground Equipment | $125,000 | $180,000 |
| Computer Hardware and Software and Classroom Technology | $25,000 | $75,000 |
| Office and Lobby Furniture, Office Equipment and Supplies, and Telephone System | $10,000 | $25,000 |
| Indoor and Outdoor Signage | $30,000 | $50,000 |
| Travel and Living Expenses while training and Plan Review | $3,000 | $5,000 |
| Transportation Vehicles and Equipment | $0 | $5,000 |
| Insurance and Utility Deposits | $4,000 | $10,000 |
| Business Licenses | $3,000 | $5,000 |
| Start-Up Marketing and Advertising Expenses | $45,000 | $45,000 |
| Additional Funds/Working Capital - 3 months after opening | $65,000 | $130,000 |
| Total | $590,000 | $1,010,000 |
Other formats
| Format | Total investment |
|---|---|
| Purchased Kiddie Academy Facility | $4,935,000 – $8,530,000 |
Item 7 PDF pp. 28-30 prints $590,000-$1,010,000 for a leased Academy. Its tenant-improvement and construction-soft-cost line is expressly unpriced ("Varies") and is shown separately above. Note 3 on PDF p. 33 reports historical tenant-contribution costs from $0 to $95,000, but that is not a current estimated line range and is not silently added to the printed total. A purchased facility has a separate $4,935,000-$8,530,000 estimate.
What ongoing royalties and fees does Kiddie Academy charge? (Item 6)
Source: Kiddie Academy 2026 FDD, Item 6, PDF p. 22.
Item 6 of Kiddie Academy’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalties | 7% of Gross Revenues | Every period | 7% weekly. Qualifying new franchisees signing during scheduled orientation pay 3.5% for the first six months at their first new Academy. (Item 6, PDF p. 22) |
| Brand Building Fund | 2% of Gross Revenues | Every period | 2% weekly. (Item 6, PDF p. 22) |
| Right to Audit for Revenue Compliance | Varies | When it applies | Underpayments plus interest at two points above prime or lawful maximum; if underpayment exceeds 3%, greater of audit cost or $10,000 plus 10% of amount owed. Record-default audits can also require audit cost. (Item 6, PDF p. 23) |
| Failure to Comply with the Franchise Agreement | $1,000 | When it applies | $1,000 for each failure. (Item 6, PDF p. 23) |
| Relocation of Kiddie Academy Franchise | $40,000 | When it applies | Due when the Academy opens at a new site. (Item 6, PDF p. 24) |
| Transfer to Entity with Same Owners | $0 | When it applies | No transfer fee when the same individuals transfer the business to an entity they own. (Item 6, PDF p. 24) |
| Administrative Fee from Transferee | $25,000 – $50,000 | When it applies | Usually $50,000 paid by buyer; $25,000 for an existing Kiddie Academy franchisee buyer. Franchisor may vary the fee. (Item 6, PDF p. 24) |
| Referral Fee (Sale of Business) | Varies | When it applies | On a qualifying sale to an existing or former franchisee, applicant, or Academy Director: lesser of $75,000 or 5% of sale price, minimum $10,000. Franchisor may vary the fee. (Item 6, PDF p. 24) |
| Interest on Late Payments | Varies | When it applies | Maximum lawful rate; if no maximum applies, 1.5% per month. (Item 6, PDF p. 25) |
| Franchisee Training | $0 | When it applies | Training for up to two individuals included; franchisee pays travel and living expenses. (Item 6, PDF p. 25) |
| Director Training | Varies | When it applies | One session per year included; an additional Director may cost $2,500 per person, plus travel and living expenses. (Item 6, PDF p. 25) |
| Background Check Fee | $0 | When it applies | No separate fee. (Item 6, PDF p. 25) |
| Site Selection | $0 | When it applies | No franchisor fee; owner bears own site-selection costs. (Item 6, PDF p. 25) |
| Franchise Renewal | $0 | When it applies | No separate renewal fee; must sign then-current agreement and satisfy renewal terms. (Item 6, PDF p. 25) |
| Fees/Interest for Failure to Repair Academy | Varies | When it applies | Repair costs plus 15% of franchisor aggregate expenses if it repairs or refurbishes the Academy. (Item 6, PDF p. 25) |
| Late Charge on Late Payments | Varies | When it applies | Up to 10% of each late payment, in addition to interest. (Item 6, PDF p. 26) |
| Annual Franchisee Conference - Every Other Year | $2,000 | When it applies | $2,000 per Academy only if the owner fails to attend at least once every other year. (Item 6, PDF p. 26) |
| Replacement of Manuals | $500 | When it applies | $500 per hard-copy volume; no franchisor fee for online self-replacement. (Item 6, PDF p. 26) |
| Liquidated Damages | Varies | When it applies | On early termination: average weekly royalties and Brand Building Fund fees over the prior 156 weeks, multiplied by the lesser of 156 weeks or weeks remaining in term. (Item 6, PDF p. 26) |
| Enforcement Costs | Varies | When it applies | Franchisor costs to enforce agreements after violation. (Item 6, PDF p. 26) |
| Network Equipment | Varies | When it applies | If franchisor purchases or installs required equipment on owner’s behalf, its cost plus 25% administrative fee. (Item 6, PDF p. 27) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Kiddie Academy startup investment and modeled fees over 10 years
Item 6 states a reduced introductory royalty for qualifying first Academies and a separate Brand Building Fund charge. Item 7 has unpriced possible tenant improvements; Item 11 also requires local annual advertising expenditures. Gross revenue alone cannot represent the complete ongoing fee and facility obligations. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Kiddie Academy franchised outlet history
Source: Kiddie Academy 2026 FDD, Item 20, PDF p. 95.
Item 20 Table 3 reports 363 franchised outlets at the end of 2025. The company-owned table reports a further 1 outlets. Our calculated average annual franchised exit rate is 1% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 305 | 23 | 2 | 326 | 0.7% |
| 2024 | 326 | 22 | 4 | 344 | 1.2% |
| 2025 | 344 | 23 | 4 | 363 | 1.2% |
Franchised units went from 305 to 363 over 3 years (+58).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Kiddie Academy’s exit rate with other brands.
18 units changed owners in 2025.
Item 20 Table 3, PDF pp. 90-95, reports fiscal years ending December 31, 2023, December 29, 2024 and December 28, 2025. The three years reconcile to the franchised outlet totals; Table 4 on PDF p. 95 records one company-owned outlet at each year end.
How much do Kiddie Academy franchise owners make? (Item 19)
Source: Kiddie Academy 2026 FDD, Item 19, PDF p. 70.
Item 19 of the 2026 FDD reports average gross revenue for mature academies of $2,193,815 (2025, 293 mature academies open at least 24 months as of December 31, 2025). Besides sales, Kiddie Academy’s Item 19 reports “Average gross profit for mature academies”. The figure follows the franchisor’s own definition in Item 19, which decides which costs are deducted and whether an owner’s salary is one of them. It is not necessarily an owner’s take-home pay.
See every Kiddie Academy Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Kiddie Academy’s Item 19 figures and sample limits.
How long is the Kiddie Academy franchise agreement term?
Source: Kiddie Academy 2026 FDD, Item 17, PDF p. 64.
For a leased Academy, coterminous with its premises lease, with a minimum of 15 years; 25 years if the real estate is purchased.
Additional ten-year renewal terms are available if the conditions are met. No separate renewal fee is listed in Item 6.
How long does it take to open a Kiddie Academy franchise? (Item 11)
Source: Kiddie Academy 2026 FDD, Item 11, PDF p. 46.
Item 11 of the 2026 FDD states the time from signing the franchise agreement and paying the first installment of the initial fee to opening: approximately 18 to 42 months.
Compare Kiddie Academy with other franchises
Head-to-head FDD cost, fee, and earnings comparisons:
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Frequently Asked Questions about Kiddie Academy
- How much does a Kiddie Academy franchise cost?
- Item 7 of the 2026 FDD prints $590,000-$1,010,000 for a leased Academy and $4,935,000-$8,530,000 for a purchased facility. The leased table also lists tenant contributions for improvements and construction soft costs as "Varies," without a numeric estimate.
- What is the Kiddie Academy initial franchise fee?
- Item 5 lists a standard $150,000 fee paid in installments. Approved multi-unit and other reduced-fee programs can lower it to $70,000, $85,000 or $125,000, depending on eligibility.
- What royalties and brand fund fees apply?
- Item 6 lists a 7% weekly royalty and 2% Brand Building Fund contribution, both based on Gross Revenues. A qualifying first Academy developed after signing at scheduled orientation pays a reduced 3.5% royalty for its first six months.
- What financial performance does the FDD disclose?
- Item 19 reports 2025 average Gross Revenue of $2,193,815 and average Gross Profit of $534,330 for 293 mature Academies open at least 24 months. The franchisee submissions were not independently audited or verified, and Gross Profit is not owner take-home income.
Sources
Kiddie Academy Domestic Franchising, LLC Franchise Disclosure Document, issued March 27, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 17
- Item 6: cited PDF p. 22
- Item 7: cited PDF p. 28
- Item 19: cited PDF p. 68
- Item 20: cited PDF p. 95
- Agreement term (Item 17): cited PDF p. 64
Page references for Kiddie Academy use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 22, 2026: Source check completed against the recorded FDD.
- October 22, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 27, 2026).