Kiddie Academy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$405,000 - $6,950,000
Franchise Fee
$70,000
Total US Locations
345
Business Summary
Kiddie Academy operates specially designed early childhood learning and child care facilities, offering programs for children aged six weeks to 12 years under the Kiddie Academy® brand. These year-round centers typically accommodate between 140 and 220 children, utilizing the proprietary Kiddie Academy System and Marks. The Kiddie Academy Life Essentials® Curriculum focuses on academic and social enrichment, with an emphasis on learning through play. Kiddie Academy also employs a proprietary suite of digital tools for enrollment, tour scheduling, and robust reporting to streamline the family enrollment experience.
Corporate History
The Kiddie Academy system was founded by Pauline and George Miller in 1981, when the first Kiddie Academy Educational Child Care center opened. The brand began offering franchises in 1992 through Kiddie Academy Franchising Systems, Inc. In 1999, this entity merged into Kiddie Academy Child Care Learning Centers, Inc., which then merged into Kiddie Academy International, Inc. (KAI). In 2002, KAI formed Kiddie Academy Domestic Franchising, LLC (KADF), Kiddie Academy Foreign Franchising, LLC, and Kiddie Academy Corporate Centers, LLC, which assumed the functions previously performed by KAI. In 2005, KAI also established Kiddie Academy System Advertising Fund, LLC (KASAF). KAI later changed its name to Essential Brands Inc. (EBI) in December 2009, retaining all rights to the Kiddie Academy brand and operating system. In 2018, EBI formed KA Support Services, LLC (KASS) to provide management services to the subsidiaries and KASAF.
Financial Overview
Investment Range
$405,000 - $6,950,000
Franchise Fee (Low)
$70,000
Franchise Fee (High)
$150,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$48,000
Equipment Costs (High)
$1,118,000
Working Capital
$72,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kiddie Academy Domestic Franchising, LLC's parent company, Essential Brands, Inc. and Subsidiaries, has consistently shown healthy financial performance with net income of $28.4 million in 2024, $25.3 million in 2023, and $21.8 million in 2022. Both Essential Brands, Inc. and Kiddie Academy Domestic Franchising, LLC receive unqualified audit opinions, indicating that their financial statements are presented fairly in all material respects. The auditors did not identify any conditions or events that would raise substantial doubt about either company's ability to continue as a going concern. The companies maintain strong cash balances and show increasing total assets. Additionally, Kiddie Academy Domestic Franchising, LLC, and its parent, do not believe that any ongoing litigation or claims will have a material adverse effect on their financial position, results of operations, or cash flows.
Financing Details
Kiddie Academy does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for arranging their own funding. However, Kiddie Academy may provide names of potential third-party lenders upon request and offer limited assistance with the application process. Kiddie Academy does not guarantee any franchisee's notes, leases, or other obligations to third parties, nor does it receive payments from the financing process.
Performance Metrics
Total US Locations
345
Franchised Units
344
Corporate Units
1
Avg Square Footage
10,000
Franchising Since
1992
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Kiddie Academy has disclosed a total of four litigation cases. Three of these cases have been concluded, while one is currently pending. The concluded cases include: 1. A dispute filed in July 2016 against Radoste, LLC, concerning uncured defaults in the franchise agreement and business reporting. A separate action was initiated by the franchisee, alleging Kiddie Academy failed to provide adequate relocation support. Both cases were settled in February 2017, with no admission of fault by Kiddie Academy. 2. A case filed in November 2017 against a former franchisee (Supriya Sumanth, Sumanth Nandagopol, and Wonder World Learning, LLC) for trademark infringement, copyright infringement, and breach of contract following termination of the franchise agreement. The former franchisee filed counterclaims, but summary judgment was granted in favor of Kiddie Academy on most claims. This action was settled in May 2021 without either party admitting fault or paying damages. 3. A lawsuit, Sierra Learning Academy, Inc. v. Kiddie Academy Domestic Franchising, LLC, filed in November 2018, alleging breach of contract and state law violations after the plaintiff's franchise agreement was terminated for misuse of marks. The suit was never served on Kiddie Academy and was settled in July 2019, allowing the franchisee to transfer its business and receive a partial refund. One case remains pending: 1. In April 2024, Kiddie Academy filed a complaint against former franchisee Paradise Organization Corp. and its owners, seeking damages for copyright infringement, breach of contract, and violation of the Defend Trade Secrets Act. This was in response to the former franchisee removing Kiddie Academy's name and marks and starting an independent child care business in violation of the franchise agreement. The former franchisee denied the allegations and filed counterclaims, seeking damages for breach of contract and a declaratory judgment to prevent enforcement of the non-compete provisions. This matter is currently pending before the court.
Bankruptcy History
Kiddie Academy Domestic Franchising, LLC has no bankruptcy information required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew, Kiddie Academy franchisees must provide written notice of their intent to renew at least 12 to 18 months before the current agreement ends. They must renovate and refurbish the franchised business to meet Kiddie Academy's then-current standards, including design, operating specifications, and equipment. Franchisees and their affiliates must be in substantial compliance with all agreements and not be in default, including all monetary obligations. Additionally, franchisees and their principals must sign Kiddie Academy's then-current franchise agreement, which may include materially different terms like higher royalty, Brand Building, and local advertising fees, though these will not exceed the rates charged to the newest franchisees. They must also authorize criminal background and credit checks, attend and complete any required training, and execute a general release of claims against Kiddie Academy. Finally, franchisees must prove they have the right to possess the franchise location for the duration of the successor agreement or secure approval for a new location.
Training & Support Program
Franchisor Assistance
Kiddie Academy provides extensive support to its franchisees. Before opening, Kiddie Academy helps with site selection by designating search areas, reviewing proposed sites, and providing a Site Development Manual with detailed instructions. They offer concept plans for interior and exterior design, review construction for compliance, and assist with obtaining necessary licenses and permits. Kiddie Academy also provides initial training for franchisees and their Academy Directors, consults on classroom setups, operations, business management, and the proprietary Kiddie Academy Life Essentials Curriculum. They help plan Grand Opening Celebrations and provide lists of approved equipment, supplies, and vendors, as well as prescribing a Business Management System including computer hardware, software, and networking equipment. After an Academy opens, Kiddie Academy continues to assist with Grand Opening Celebrations and offers ongoing periodic visitations, tools, and materials for operation and management. They make advertising and promotional plans and materials available for local advertising and permit continued use of the Kiddie Academy Manuals and Life Essentials Curriculum. Ongoing training is also provided for subsequent Academy Directors, and franchisees are required to attend refresher training programs and an annual conference every other year.
Initial Training Hours
133.5
Training Location
Hybrid: Online/virtual, corporate office in Abingdon, Maryland, prototype Academy in Abingdon, Maryland, and at the franchisee's Academy location.
Ongoing Support
After opening, Kiddie Academy provides ongoing periodic visitations to assist with operations and management, along with various tools and materials. They make advertising and promotional plans and materials available for local marketing efforts. Franchisees continue to use the Kiddie Academy Manuals and the Life Essentials Curriculum. Kiddie Academy also provides training for subsequent Academy Directors. Additionally, franchisees and/or their Academy Directors are obligated to attend refresher training programs, courses, seminars, and other training programs as required by Kiddie Academy throughout the franchise term.
Franchise Requirements
Ideal Candidate Profile
Kiddie Academy seeks franchisees who are present and personally involved in the day-to-day management and supervision of their Academy, devoting full-time effort. If a franchisee owns multiple Kiddie Academy locations, they can divide their full-time efforts among those businesses. While specific industry or management experience is not explicitly required for the franchisee, the role demands strong management and supervision skills to ensure compliance with the Kiddie Academy System. The franchisee will be responsible for hiring a Director, who typically needs a degree in education and an early childhood education certificate, as well as other qualified staff mandated by state regulations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
The Kiddie Academy franchise territory is defined as a circle with the Academy at its center, with the radius depending on the population within a one-mile radius of the Academy. If the population is 50,000 people or less, the territory has a 1.5-mile radius. If the population is greater than 50,000 but less than 125,000 people, the territory has a 0.5-mile radius. If the population is 125,000 people or more, no exclusive territory is granted.
Staffing Notes
Kiddie Academy locations must always operate under the direct, on-premises supervision of a trained and certified full-time Director who is qualified in the state where the Academy is located. The Director's identity, qualifications, and governmental approval must be disclosed to Kiddie Academy. In most cases, Directors are required by state regulations to have a degree in education and a certificate in early childhood education. Franchisees are also responsible for hiring additional qualified staff and teachers as mandated by applicable licensing authorities and ensuring all staff pass criminal background checks. All personnel with access to confidential information must sign a confidentiality agreement.