Building Kidz School Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$309,500 - $1,538,000
Franchise Fee
$35,000
Total US Locations
48
Business Summary
Building Kidz Worldwide, LLC operates Building Kidz Schools, which are full-service campuses offering childcare and learning center services for children from infancy up to 12 years old. These schools provide a unique combination of world-class academics and specialized Performing Arts programs, integrating music, dance, theater, and foreign language into the curriculum. Building Kidz also offers a readiness for kindergarten program, a private kindergarten program, and after-school programs up to 6th grade. Additionally, Building Kidz is piloting an optional weekend enrichment program called Building Excellence for K-12 students. The schools prioritize a safe and nurturing environment for children, typically operating from 7 am to 6 pm.
Corporate History
Building Kidz Worldwide, LLC was formed as a California limited liability company on March 27, 2015, and began offering franchises in August 2015. In January 2021, the company launched a new division, Building Facilitiez, which oversees improvements in furniture, fixtures, and minor construction projects for Building Kidz Schools located in California. The brand operates childcare and learning centers, with its oldest affiliate having operated since 2005. Building Kidz Worldwide, LLC intends to enter into a non-binding term sheet for the sale of a yet-to-be-determined percentage of the company, with the transaction expected to be completed in 2025.
Financial Overview
Investment Range
$309,500 - $1,538,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$84,000
Equipment Costs (High)
$1,122,500
Working Capital
$112,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Despite receiving an unqualified audit opinion for its financial statements for 2022, 2023, and 2024, Building Kidz Worldwide, LLC's Franchise Disclosure Document includes a specific risk disclosure highlighting that the franchisor's financial condition, as reflected in those statements, calls into question its financial ability to provide services and support to its franchisees. The company's members' equity has declined from $459,609 in 2022 to $127,266 in 2024, primarily due to significant distributions to members, which totaled $1,749,358 in 2024.
Financing Details
Building Kidz Worldwide, LLC does not offer any direct or indirect financing to its franchisees and does not guarantee their notes, leases, or other obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
48
Franchised Units
39
Corporate Units
9
Avg Square Footage
6,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Building Kidz Worldwide, LLC had one historical case in 2017 against Golden Stone Inc. This case involved allegations of breach of a franchise agreement and a business purchase agreement by Golden Stone Inc., with counter-claims from Golden Stone Inc. alleging violations of the California Franchise Investment Law and fraud. The parties reached a settlement in April 2017, which included rescinding all contracts and Building Kidz Worldwide, LLC paying $348,000 to repurchase the school. More recently, during fiscal year 2024, Building Kidz Worldwide, LLC initiated four separate arbitration actions against franchisees before the Judicial Arbitration and Mediation Services (JAMS) in San Francisco. These cases, filed between March and July 2024, were brought against Barth, Kalsi, MJ & K Kidz, Inc., and Buccola, respectively, to collect royalty payments.
Bankruptcy History
Building Kidz Worldwide, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
15 years
Renewal Conditions
To renew their franchise, Building Kidz Worldwide, LLC franchisees must meet several conditions: the franchisor must not have legal grounds to terminate or not renew the franchise; the franchisee must provide written notice of their intent to renew between 180 and 240 days before the current term expires; they must sign a new Franchise Agreement, which may include different terms and higher fees; the franchisee must remodel their premises at their own expense to meet the franchisor's current standards; they are required to sign a general release of claims; and they must pay a Successor Fee of $10,000.
Training & Support Program
Franchisor Assistance
Building Kidz Worldwide, LLC offers franchisees pre-opening and ongoing assistance. Before opening, the franchisor helps with site selection by providing information and visiting potential sites, though the franchisee is ultimately responsible for securing the location. They also offer guidance on color schemes and layout for the premises, and may assist with construction management. For staffing, Building Kidz Worldwide, LLC shares best practices for hiring, training, and retention. Initial training is provided at the franchisor's headquarters for up to two people, covering a range of topics from curriculum to administrative operations, with the franchisor covering instructors, materials, breakfast, and lunch. During operation, Building Kidz Worldwide, LLC provides the entire school curriculum and updates, best practices for employee hiring and training, and guidance on local marketing, advertising, and competitive pricing strategies. The franchisor also hosts a homepage on its website to promote new openings and assists with resolving operational problems as needed.
Initial Training Hours
105
Training Location
Corporate headquarters in Foster City, CA, online, or at your campus
Ongoing Support
Building Kidz Worldwide, LLC provides ongoing support to its franchisees after opening, including continuous updates to the school curriculum and best practices for hiring and training employees. The franchisor offers guidance on local marketing and advertising strategies to boost enrollment and maintains a homepage on the Building Kidz website to promote new openings. Franchisees receive support in developing competitive pricing strategies and consultation for resolving operational problems. The franchise system also includes access to the Building Kidz Connect software and a ChildCare CRM system, which the franchisor can access for oversight. Building Kidz Worldwide, LLC administers an advertising fund, collecting 1% of gross revenue (potentially increasing to 1.5%) for system-wide marketing, and may establish advertising cooperatives. They also maintain a Franchise Council for operational and marketing collaboration. The franchisor conducts quality control inspections and may require remedial training and inspections if standards are not met.
Franchise Requirements
Ideal Candidate Profile
Building Kidz Worldwide, LLC seeks individuals to operate its franchises who are committed to a hands-on approach, especially during the initial startup phase. Until the franchised business operates at 80% capacity for 90 consecutive days, the Managing Owner must personally participate full-time in the direct operation, though this oversight does not always need to be on-site. For Area Developers, the franchisor looks for candidates with necessary business operational skills and financial resources. Franchisees are responsible for hiring qualified staff, including a Director or Assistant Director who must be on-site during all operating hours and involved in day-to-day operations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Building Kidz Worldwide, LLC generally grants franchisees a minimum territory radius of one-half mile from the front door of their Building Kidz School. However, the franchisor reserves the right to grant a smaller radius in densely populated markets or a larger radius in suburban or rural areas. The specific boundaries of a territory may be defined by municipal or county lines, roads, or natural geographic features like water or mountain ranges. The actual size will vary based on factors such as the availability of contiguous markets, the franchisor's long-range plans, the franchisee's resources, and market conditions.
Staffing Notes
Each Building Kidz School requires a Managing Owner who must personally participate in the direct operation of the franchise on a full-time (40 hours per week) basis until the school operates at or above 80% of its capacity for 90 consecutive days. The Managing Owner is responsible for overseeing and supervising the business, though this oversight is not always required to be on-site. If the franchisee is a business entity, the Managing Owner is not required to have an equity interest in the franchise. In addition, a qualified Director or Assistant Director must be present on-site during all operating hours and actively involved in the day-to-day operations of the Building Kidz School. Building Kidz provides initial training for up to two individuals, including the Managing Owner, at its headquarters before the school opens. If there is a change in the Managing Owner or Director, Building Kidz must approve the new individual before they start work. The new Managing Owner must successfully complete Building Kidz's training program at the franchisee's cost, and a new Director may be required to attend Director-specific training at the franchisee's expense, based on Building Kidz's assessment of their training level. Building Kidz may recommend specific staffing levels, personnel qualifications, training, dress, and appearance, but franchisees are ultimately responsible for all hiring and employment decisions. All Managing Owners, Directors, and staff may also be required to sign a confidentiality agreement.