KidStrong logo

KidStrong Franchise

Audited Financials
Child & Youth ServicesEst. 2019Frisco, TX
www.kidstrong.com

Risk Score

Pending analysis

Investment Range

$448,100 - $600,000

Franchise Fee

$45,000

Total US Locations

131

Business Summary

KidStrong offers a 'whole child' development program focused on building stronger kids through innovative training. This includes physical fitness, leadership, and confidence building. The KidStrong curriculum is based on developmental science and involves experts in pediatric occupational therapy, child development, sports physiology, and physical education. KidStrong aims to help children succeed by focusing on brain, physical, and character development.

Corporate History

KidStrong Franchising LLC was formed in Delaware on July 31, 2019, and began offering and selling KidStrong franchises in August 2019. The company exclusively focuses on franchising KidStrong Centers and does not directly own or operate any. KidStrong Franchising LLC's parent company is KidStrong, Inc., and its affiliates own and operate company-owned or corporate KidStrong locations.

Financial Overview

Investment Range

$448,100 - $600,000

Franchise Fee (Low)

$45,000

Franchise Fee (High)

$45,000

Royalty %

8.5%

Marketing %

1.65%

Equipment Costs (Low)

$100,500

Equipment Costs (High)

$128,500

Working Capital

$27,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The FDD highlights a special risk regarding KidStrong Franchising LLC's financial condition, stating that its financial ability to provide services and support to franchisees is called into question. The company's financial statements show a member's equity deficit of $427,728 as of December 31, 2024, despite a positive net income for the year. This suggests potential financial challenges or reliance on parent/affiliate support.

Financing Details

KidStrong Franchising LLC does not offer any direct or indirect financing to franchisees. The company also does not guarantee any notes, leases, or other obligations for its franchisees.

Performance Metrics

Total US Locations

131

Franchised Units

121

Corporate Units

10

Avg Square Footage

3,850

Franchising Since

2019

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew the franchise, KidStrong franchisees must provide written notice of their intent to sign a new agreement between 90 and 180 days before the current term ends. They must sign KidStrong Franchising LLC's then-current franchise agreement, which may have different terms and fees. Franchisees need to be in full compliance with their existing agreement, the Manual, and all other agreements with KidStrong Franchising LLC and its affiliates or suppliers, as well as all monetary obligations. They must also have all necessary licenses and permits in good standing, complete any required updates or renovations to their center and systems, and be current on all training. Additionally, franchisees cannot have committed more than two material defaults during the term, must demonstrate the right to occupy their location for the renewal term, meet all general requirements for new franchisees, and sign a general release of claims. A successor agreement fee, which is the greater of $7,500 or 25% of the then-current initial franchise fee for new franchisees, is also required.

Training & Support Program

Franchisor Assistance

Before opening, KidStrong Franchising LLC provides franchisees with site selection and development assistance, including reviewing architectural plans. Franchisees receive initial training and access to the confidential Manual. KidStrong Franchising LLC also provides specifications for products, designates suppliers, and offers equipment installation services. It guides franchisees on pre-sales and grand opening marketing campaigns, requiring a startup marketing fee. During operation, KidStrong Franchising LLC may revise the Manual and System, and requires new managers to complete training. It maintains an interactive website and may establish an annual convention for franchisees to attend. KidStrong Franchising LLC also provides specifications for equipment, signs, and fixtures, and offers ongoing advisory assistance via phone, intranet, and on-site visits, though additional on-site assistance may incur a fee.

Initial Training Hours

98

Training Location

Frisco, TX and online

Ongoing Support

After opening, KidStrong Franchising LLC provides ongoing support to franchisees, including revisions to the Manual and System, and required training for new General Managers, Assistant General Managers, and Lead Coaches. KidStrong Franchising LLC maintains an interactive website and may establish an annual convention that franchisees are required to attend. It can also designate pricing mandates and provide specifications for equipment, signs, and fixtures. Continuing advisory assistance is available by telephone and intranet communication. Additional on-site assistance can be requested, subject to personnel availability and an additional fee at KidStrong Franchising LLC's then-current rate.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

supervisory

Territory Type

protected

Staff Count

14

Territory Size Requirements

KidStrong Franchising LLC defines territories for its Centers using either a custom polygon based on mobile data to identify where customers are drawn from, a 2-mile radius around the center if it's in a rural area, or a block radius if the center is in an urban area. KidStrong Franchising LLC reserves the right to grant a smaller territory at its sole discretion.

Staffing Notes

KidStrong Franchising LLC requires franchisees to appoint a General Manager and an Assistant General Manager who must successfully complete its General Manager Certification Program. These managers, along with a Lead Coach if applicable, are responsible for managing the center's core operations. Franchisees or their Operating Partners are not permitted to serve in these roles themselves. To open, franchisees must have at least 8 certified coaches and should plan to hire a minimum of 12 coaches, anticipating that some may not pass the certification. Throughout the franchise term, the designated Lead Coach, General Manager, Assistant General Manager, and any regional staff must complete the General Manager Certification Training Program, with training potentially offered online or at corporate centers. Franchisees are responsible for ensuring that they hire and maintain these trained and certified leadership roles on staff at all times.