Building Kidz School franchise unit economics
Building Kidz School franchisees run childcare and learning centers that charge tuition for infants through school-age children, with a curriculum that includes music, dance, theater and foreign language classes.
Building Kidz School franchise at a glance
The 2026 FDD, issued April 17, 2026 and amended August 1, 2026, reports 2025 revenue, EBITDA and margin for 27 of the 46 franchised schools, grouped into thirds by EBITDA margin and into four bands by years open.
Building Kidz School’s 27 franchised schools open at least 12 months averaged $1,369,469* of revenue on Averan’s calculation across the three thirds, according to Item 19 of Building Kidz School’s 2026 FDD, issued 1 August 2026. The 27 in that group are 59%* of Building Kidz School’s 46 franchised schools.
- A Building Kidz School franchise costs $327,000 to $1,543,000 to open, including a $60,000 initial franchise fee and a $25,000 launch fee, according to the 2026 FDD.
- Building Kidz School charges a royalty of the greater of 7% of Gross Revenue or $500 a month, a 1% advertising fund, a $360 monthly technology fee and a local advertising minimum of $1,500 a month until the school reaches 85% of its FTE capacity.
- On Averan’s reading, Building Kidz School’s recurring charges paid to the brand come to about 8.32% of revenue at the 2025 average.*
- Building Kidz School’s top third of schools averaged $1,946,112 of 2025 revenue at a 38.0% average margin; the bottom third averaged $785,427 at 19.7%.
- Across the three thirds, the 27 Building Kidz School locations averaged $1,369,469 of revenue and $433,166 of EBITDA on Averan’s calculation.*
- Building Kidz School had 46 franchised schools and 9 affiliate-owned schools at the end of 2025, with 26 signed franchise agreements for schools not yet open.
These figures come from Building Kidz School's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 8.32% fee total and the 27-school averages of $1,369,469 revenue and $433,166 EBITDA are Averan calculations: the averages are the mean of the three equal-sized thirds (9 schools each); the fee total is 7% royalty, 1% fund and $4,320 a year of technology fee, divided by $1,369,469. It leaves out the $18,000 a year of local advertising, which the owner spends.
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Talk to Averan → Averan Building Kidz School Conversion Package →- Item 19 reports 27 of the 46 franchised schools open at the end of 2025. Seven had been open less than 12 months, eight did not report a full year, and four were left out for failing to meaningfully deploy the Building Kidz model. Of the 39 schools open 12 months or more, 12 are not in the figures, 30.8%.*
- The top third by EBITDA margin averaged 38.0%; the bottom third averaged 19.7%. Average revenue was $1,946,112 in the top third and $785,427 in the bottom third, 2.5 times as much.* Average EBITDA was $744,781 against $160,438.
- Schools open six years or more averaged $1,704,700 of revenue, 76.0% more than schools open one to three years.* Average margin by years-open band was 23.8%, 30.9%, 25.7% and 31.2%, so margin did not rise in step with years open.
- The royalty is the greater of 7% of Gross Revenue or $500 a month, plus a 1% advertising fund and a $360 monthly technology fee. Local advertising must be at least $1,500 a month until the school reaches 85% of FTE capacity, then $500. At the 27-school average the royalty, fund and technology fee paid to the brand come to 8.32% of revenue; the local advertising is spent on top.*
- Franchised schools rose from 34 at the start of 2023 to 46 at the end of 2025. There were 18 openings*, 2 terminations, 3 reacquisitions by the franchisor and 1 closure for other reasons over the three years. At the end of 2025, 26 signed franchise agreements were for schools not yet open.
Revenue
How much does a Building Kidz School franchise make?
| Third | Schools | Average revenue | Median revenue | Average EBITDA | Median EBITDA | Average margin | Margin range | Average years open | Met own third’s average margin |
|---|---|---|---|---|---|---|---|---|---|
| Top | 9 | $1,946,112 | $1,436,144 | $744,781 | $539,842 | 38.0% | 34.6% to 44.6% | 6.4 | 3 |
| Middle | 9 | $1,376,867 | $1,301,531 | $394,279 | $336,988 | 27.8% | 25.7% to 33.0% | 6.0 | 3 |
| Bottom | 9 | $785,427 | $598,651 | $160,438 | $132,636 | 19.7% | 11.6% to 25.5% | 4.3 | 5 |
| All 27* | 27 | $1,369,469* | Not given | $433,166* | Not given | 31.6%* (EBITDA / revenue) | 11.6% to 44.6% | Not given | 11 |
Source: Item 19, Tables 1(a) to 1(c), 2026 FDD. Figures for calendar 2025 from the sales records and reports generated by franchisees’ accounting systems. The All 27 row is Averan’s: the mean of the three thirds, which each hold nine schools.*
The 27 schools in Item 19 averaged $1,369,469 of 2025 revenue and $433,166 of EBITDA on Averan’s calculation.* Item 19 does not print an average for all 27; it prints one for each third. Each third holds nine schools, so the mean of the three thirds is the average of the 27.
The printed margins are averages of each school’s own margin. They differ from EBITDA divided by revenue. For the top third, $744,781 divided by $1,946,112 is 38.3%*, against the printed 38.0%. The simple mean of the three printed margins is 28.5%*; total EBITDA over total revenue is 31.6%.*
The top third’s average revenue was 2.5 times the bottom third’s, and its average EBITDA 4.6 times.* The top third had been open 6.4 years on average and the bottom third 4.3 years.
In each third the median revenue is below the average. The top third’s median of $1,436,144 is 73.8% of its $1,946,112 average.* The highest revenue in the top third, $5,251,677, is also the highest of the 27 schools.
Revenue ran from $364,407 to $5,251,677 across the 27 schools, and EBITDA from $63,039 to $2,229,392. The lowest revenue figure sits in the six-years-and-over band and the lowest EBITDA in the one-to-three-years band, so they belong to different schools.
EBITDA here is after rent and all other ordinary operating expenses. Item 19 defines it as gross profit minus all ordinary and recurring operating expenses, except interest, income taxes, depreciation and amortization. Item 19 does not say whether owner pay is included in those expenses.
Nineteen of the 46 franchised schools are not in the figures. Seven had been open less than 12 months at December 31, 2025, eight failed to report the full year, and four were left out for failing to meaningfully deploy the Building Kidz model, including the performing arts teaching modules and the Learning Through Life Experiences curriculum. Affiliate-owned schools are not in Item 19.
Years open
Results by years open, 2025
| Years open | Schools | Average years | Average revenue | Median revenue | Average EBITDA | Average margin | Margin range | Met band’s average margin |
|---|---|---|---|---|---|---|---|---|
| 1 to 3 | 6 | 2.3 | $968,445 | $801,864 | $267,664 | 23.8% | 11.6% to 35.1% | 3 |
| 3 to 5 | 4 | 3.8 | $976,222 | $943,108 | $308,804 | 30.9% | 25.8% to 36.8% | 2 |
| 5 to 6 | 5 | 5.6 | $1,360,738 | $1,349,803 | $358,607 | 25.7% | 19.8% to 37.8% | 2 |
| 6 and over | 12 | 7.8 | $1,704,700 | $1,315,542 | $588,437 | 31.2% | 19.4% to 44.6% | 6 |
Source: Item 19, Tables 2(a) to 2(d), 2026 FDD. Weighting the four bands by school count gives $1,369,468 of revenue and $433,166 of EBITDA, the same as the three thirds within rounding.*
Average revenue rose from $968,445 in the one-to-three-years band to $1,704,700 in the six-years-and-over band, a rise of 76.0%.* The three-to-five-years band averaged $976,222, 0.8% above the youngest band.* The five-to-six-years band averaged $1,360,738.
Average margin by band was 23.8%, 30.9%, 25.7% and 31.2%. The highest band margin is in the six-years-and-over group and the lowest in the one-to-three-years group, but the five-to-six-years band sits below the three-to-five-years band.
The six-years-and-over band holds 12 schools with margins from 19.4% to 44.6%. Its median revenue of $1,315,542 is below its $1,704,700 average. The highest revenue figure of the 27, $5,251,677, and the lowest, $364,407, are both in this band.
The six schools open one to three years averaged $968,445 of revenue and $267,664 of EBITDA. They had been open 2.3 years on average. Item 19 does not report first-year results; schools open less than 12 months are left out.
Brand charges
Brand charges
| Charge | Amount | A year at $1,369,469 |
|---|---|---|
| Royalty | Greater of 7% of Gross Revenue or $500 a month | $95,863* |
| Advertising fund | 1% of Gross Revenue, may be raised to 1.5% | $13,695* |
| Local advertising | $1,500 a month until the school reaches 85% of FTE capacity, then $500 a month | $18,000*, then $6,000* |
| Advertising cooperative | Up to 1.5% of Gross Revenue, offset against the local advertising requirement | Not added; counts toward local advertising |
| Technology fee | $360 a month | $4,320* |
| Paid to the brand | 8% of Gross Revenue plus $360 a month | $113,878* (8.32%*) |
Source: Item 6, 2026 FDD. Gross Revenue excludes sales and excise taxes collected and is reduced by documented refunds. FTE capacity is defined in the Operations Manual.
The royalty is 7% of Gross Revenue, with a $500 monthly minimum. The minimum applies from 550 days after the franchise agreement is signed, whether or not the school has opened. At 7%, the minimum is higher than the percentage royalty below $85,714 of annual revenue.*
Local advertising drops from $1,500 a month to $500 a month once the school reaches 85% of its FTE capacity. At the 27-school average that cuts the owner’s local spend from $18,000 to $6,000 a year. It does not change the 8.32% paid to the brand.* The franchisor may allow a further reduction when enrollment is 90% of capacity or more with at least 10% of capacity on a waitlist.
At the bottom third’s $785,427 average, the fees paid to the brand come to 8.55% of revenue; at the top third’s $1,946,112 they come to 8.22%.* These leave out the local advertising, which the owner spends.
The advertising fund is 1% of Gross Revenue and may be raised to 1.5%. If an advertising cooperative is formed, contributions of up to 1.5% count toward the local advertising requirement, and the franchisee pays any difference.
Other charges apply as incurred. They include a $25,000 transfer fee, additional training at $2,000 a week plus travel, a $150 late fee, and $0 to $5,000 for franchise conference attendance.
Cost to open
Cost to open
| Line | Low | High | Paid to |
|---|---|---|---|
| Construction, remodeling, leasehold improvements | $50,000 | $1,000,000 | Contractors |
| Additional funds, 3 months | $75,000 | $150,000 | Suppliers, employees, other creditors |
| Initial franchise fee | $60,000 | $60,000 | Franchisor |
| Equipment, fixtures, other fixed assets | $40,000 | $100,000 | Franchisor and outside suppliers |
| Learning Through Life Experience set-up | $25,000 | $45,000 | Franchisor |
| Launch fee | $25,000 | $25,000 | Franchisor |
| Real property lease deposit | $20,000 | $60,000 | Landlord |
| Initial months’ rent | $10,000 | $30,000 | Landlord |
| Themed furniture | $2,000 | $20,000 | Franchisor |
| Remote visibility and security system | $7,000 | $20,000 | Security system provider |
| Outside signage and front lobby | $4,000 | $10,000 | FastSigns or approved company |
| Training travel, grand opening, office supplies, CRM, tablets, performing arts fixtures, licenses | $9,000 | $23,000 | Various |
| Total | $327,000 | $1,543,000 |
Source: Item 7, 2026 FDD. The last row combines seven smaller lines (Averan’s grouping).* The FDD says construction assumes build-out of an existing structure and may be higher for a ground-up build.
Construction is estimated at $50,000 to $1,000,000. The FDD says the building will generally be 2,000 to 10,000 square feet in leased premises, and that a triple-net lease should range from $60,000 to $360,000 a year.
Rent of $60,000 to $360,000 a year equals 4.4% to 26.3% of the 27-school average revenue.* Rent is one of the operating expenses deducted before Item 19’s EBITDA.
The cover states that $156,000 to $172,500 is paid to the franchisor or its affiliate. The Item 7 lines marked as paid to the franchisor add to $115,000 to $155,500*: the initial franchise fee, the launch fee, LTLE set-up, CRM, themed furniture and performing arts fixtures. The equipment line, $40,000 to $100,000, is payable to the franchisor and outside suppliers without a split.
The $60,000 initial franchise fee was not charged in full on every 2025 agreement. The franchisor signed 11 unit franchise agreements in 2025 and collected initial fees of $25,000 to $60,000. The lowest is 58.3% below the stated fee.* Honorably discharged veterans receive a 10% discount on the first school’s fee.
Area developers pay a per-school development fee in place of the initial franchise fee. It is $48,000 a school for ten or more schools in five years and $57,000 a school for three schools in five years, plus the $25,000 launch fee for each school. That is $73,000 and $82,000 a school, against $85,000 for a single franchise.*
Opening typically takes 6 to 12 months from signing. The school must open within 550 days of signing unless the franchisor agrees otherwise. The territory is nonexclusive, generally a minimum radius of one-half mile from the front door.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | Franchised at end | Affiliate-owned at end | Total at end | Transfers |
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 34 | 7 | 2 | 0 | 1 | 0 | 38 | 7 | 45 | 0 |
| 2024 | 38 | 4 | 0 | 0 | 2 | 1 | 39 | 9 | 48 | 1 |
| 2025 | 39 | 7 | 0 | 0 | 0 | 0 | 46 | 9 | 55 | 3 |
| 2023–2025* | 34 | 18 | 2 | 0 | 3 | 1 | 46 | 9 | 55 | 4 |
Source: Item 20, Tables 1 to 4, 2026 FDD. Three-year sums are Averan’s.* The two 2023 terminations were disclosed in the previous FDD as ceased operations for other reasons.
Franchised schools rose from 39 to 46 in 2025, with 7 openings and no exits. California held 32 of the 46 at the end of 2025. The other franchised schools were in Arizona, Florida, Georgia, Maryland, New Jersey, New York, Tennessee, Texas, Virginia and Washington.
Affiliate-owned schools rose from 6 to 9 between 2023 and 2024, all in California. Three of those came from franchisees: one in 2023 and two in 2024. One affiliate school was sold to a franchisee in 2023.
At the end of 2025, 26 franchise agreements were signed for schools not yet open. Eleven were in California and seven in Texas. The franchisor projected 14 new franchised openings in the next fiscal year.
The franchisor began four arbitration actions against franchisees in 2024 to collect royalty payments. On October 1, 2025, an entity owned by TZP Small Cap Partners II, L.P. and TZP SBIC I, L.P. agreed to buy a controlling interest in the franchisor’s parent company, Building Kidz Holdings, LLC.
Questions we get asked
Questions owners ask
How much does it cost to open a Building Kidz School franchise?
The 2026 FDD estimates $327,000 to $1,543,000 for one school. That includes the $60,000 initial franchise fee, a $25,000 launch fee, $50,000 to $1,000,000 for construction and $75,000 to $150,000 of additional funds for the first three months.
What fees does a Building Kidz School franchisee pay?
A royalty of the greater of 7% of Gross Revenue or $500 a month, a 1% advertising fund that may rise to 1.5%, a $360 monthly technology fee, and local advertising of at least $1,500 a month until the school reaches 85% of FTE capacity, then $500. On Averan’s calculation the royalty, fund and technology fee paid to the brand come to 8.32% of revenue at the 27-school average.* The local advertising is spent by the owner and is not counted.
What is the average revenue of a Building Kidz School franchise?
Item 19 reports averages by third. The top third of 27 franchised schools averaged $1,946,112 in 2025, the middle third $1,376,867 and the bottom third $785,427. Across all 27 the average is $1,369,469 on Averan’s calculation.*
How much EBITDA does a Building Kidz School location make?
The thirds averaged $744,781, $394,279 and $160,438 of EBITDA, at average margins of 38.0%, 27.8% and 19.7%. Across all 27 schools the average is $433,166*. EBITDA is after rent and other operating expenses and before interest, taxes, depreciation and amortization.
Which Building Kidz School locations are left out of Item 19?
Nineteen of the 46 franchised schools: seven open less than 12 months at the end of 2025, eight that did not report the full year, and four that failed to meaningfully deploy the Building Kidz model. Affiliate-owned schools are not included.
How many Building Kidz School locations are there?
At the end of 2025 there were 46 franchised schools and 9 affiliate-owned schools, 55 in all. Another 26 franchise agreements were signed for schools not yet open.
Questions worth putting to Building Kidz School
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does Building Kidz School see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Building Kidz School locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a Building Kidz School owner
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Other brands in the Early Education And Child Care guide: Celebree School · Kiddie Academy · Lightbridge Academy · Primrose Schools · Soccer Shots · The Goddard School · The Learning Experience.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from Building Kidz Worldwide, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Building Kidz School is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Building Kidz Worldwide, LLC, 2026 Franchise Disclosure Document, issued 1 August 2026.