Kiddie Academy franchise unit economics
Kiddie Academy franchisees run purpose-built early education and child care academies that charge families tuition and registration fees.
Kiddie Academy in the news
- Kiddie Academy® multi-unit franchise owners receive IFA's top award · Franchising.com ·
The Kiddie Academy headline above is the publisher's own and links to the publisher. Averan Advisors checked this Kiddie Academy link on 11 October 2026. Franchise news lists news on 95 brands, including Kiddie Academy. Kiddie Academy is in the Early Education and Child Care franchise guide.
Kiddie Academy franchise at a glance
Kiddie Academy’s Item 19 reports 2025 revenue for 315 academies, and revenue, costs and gross profit for 293 academies open two years or more, by top quarter and bottom quarter.
Kiddie Academy’s 293 academies open 24 months or more averaged $2,193,815 of sales in 2025, with a median of $2,075,740, according to Item 19 of Kiddie Academy’s 2026 FDD, issued 27 March 2026. Kiddie Academy’s 22 academies open under 24 months averaged $1,540,666. Fees paid to Kiddie Academy come to about 9%* of sales. A Kiddie Academy franchise costs $670,000 to $1,010,000 to open.
- A Kiddie Academy franchise costs $670,000 to $1,010,000 to open, including a $150,000 initial franchise fee, according to the brand's 2026 FDD.
- Kiddie Academy charges a royalty of 7% of sales and a 2% brand fund contribution.
- 45% of mature Kiddie Academy academies, 131 of 293, reached the average.
- At the average Kiddie Academy location, wages took 46.49% and rent and space costs took 16.9% of sales.
- Work out Kiddie Academy's fees at your own sales with the minimum fee calculator.
These figures come from Kiddie Academy's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- The bottom quarter has been open 17.6 months longer than the top quarter and earns 7.4% of its gross profit. 131.41 months against 113.84, on $80,014 against $1,081,579 *, so time in business is doing the opposite of what an owner would expect.
- Rent costs $394,096 at the top and $364,402 at the bottom, on revenue 2.31 times apart. 8.1% between the two occupancy cost lines *, which makes it 12.30% of revenue for the top quarter and 26.22% for the bottom, on roughly 10,000 square feet either way.
- Every extra dollar of revenue between the two quarters carried 55.2 cents to gross profit. $1,001,565 more gross profit on $1,814,074 more revenue *, against a 24.36% margin on the revenue an average academy already has. So the next enrollment is worth well over twice what the existing ones are.
- Six academies in their second year lost $318,507 each on leases costing 53.49% of revenue. $659,233 of occupancy cost against the building up top quarter’s $213,596 *, 3.09 times the rent on 64.5% of the revenue, decided before either academy opened its doors.
- 262 signed agreements sit unbuilt against 363 open academies. 72.2% of the operating system again in the pipeline *, with 36 openings projected for the year ahead, which is 7.3 years of building at that pace.
How much does a Kiddie Academy franchise make?
The average mature Kiddie Academy academy, open 24 months or more, reported $2,193,815 of revenue in the 2026 FDD, and the median mature academy reported $2,075,740. Item 19 of the Kiddie Academy FDD publishes revenue, labor, occupancy, other costs and gross profit for 293 mature academies and 22 ramping academies, and what an owner keeps depends on the costs set out below. Fees come off the top first, at about 9% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top Kiddie Academy performers
Kiddie Academy splits its locations into groups instead of publishing one average. The top group averaged $3,203,602 a year. The lowest averaged $1,389,528. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $2,075,740. The average was $2,193,815. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 2.3× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Locations run 10,000 square feet. The build sets how much you can sell.
- Opening cost range.Opening costs $670,000 to $1,010,000, a 1.5× range inside one brand.
- Lease cost.Occupancy cost ran 16.9% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
- Fees and the minimum.Kiddie Academy charges a 7% royalty and a 2% Brand Building Fund contribution, 9% of gross revenues at every sales level.
- Cash needed in the first year.This filing shows how a new location builds up: the month sales cover costs, and how much cash you fund before then.
Live operating levers
- Wages.Wages take 46.5% of sales. The levers are staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission.
- Occupancy cost.Rent and building costs take 16.9% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Enrollment.The license sets the number of places. Track how many are filled, the price of each, and how long families stay.
Context you underwrite around
- Locations included.These figures cover 315 of 363 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard.
- What the filing does not include.Item 19 of the Kiddie Academy FDD publishes revenue, labor, occupancy, other costs and gross profit for 293 mature academies and 22 ramping academies. Ask the franchisor or current owners for any cost line the filing leaves out.
The costs, line by line
Operating statement for mature academies, 2025
| Line | Top quarter, 73 | Middle half, 147 * | Bottom quarter, 73 | All 293 |
|---|---|---|---|---|
| Months open | 113.84 | 114.54 | 131.41 | 118.57 |
| Sales | $3,203,602 | $2,091,764 | $1,389,528 | $2,193,815 |
| Labor | $1,350,900 | $982,881 | $763,185 | $1,019,835 |
| Building costs | $394,096 | $362,145 | $364,402 | $370,668 |
| Miscellaneous | $377,027 | $258,558 | $181,927 | $268,982 |
| Gross profit | $1,081,579 | $488,180 | $80,014 | $534,330 |
| Labor as a share * | 42.17% | 46.99% | 54.92% | 46.49% |
| Building costs as a share * | 12.30% | 17.31% | 26.22% | 16.90% |
| Gross profit as a share * | 33.76% | 23.34% | 5.76% | 24.36% |
The top quarter, bottom quarter and all-academy columns are as the brand reported it; the middle-half column and every share row are marked *.
Gross profit differs 13.5 times over across a system whose revenue differs 2.3 times over. $1,081,579 against $80,014 on $3,203,602 against $1,389,528 *, because two of the four lines change little with size, every point of revenue difference lands on the profit line magnified.
Labor moves 12.75 points between the ends of the system. 42.17% at the top against 54.92% at the bottom *, which is $1,350,900 against $763,185. The bottom quarter spends 43.5% less on staff and still gives up half its revenue to them, because a classroom needs its ratio whether the room is full or half full.
The middle half bills $2,091,764 against a system average of $2,193,815. $2,091,764 of revenue and $488,180 of gross profit, 23.34% *, against the system’s $2,193,815 and 24.36%, so the published average describes the ordinary academy well, and the two quarters describe two different businesses.
Fewer than half the mature academies reach their own average. That is 131 of 293 on revenue, 45%, and 125 on gross profit, 43%. Inside the bottom quarter, 46 of 73, or 63%, sit above that group’s own average. So the Kiddie Academy bottom quarter is tightly bunched, with a few academies pulling its average down.
The first two years
Operating statement for academies building up, 2025
| Line | Top six | Middle ten * | Bottom six | All 22 |
|---|---|---|---|---|
| Months open | 18.51 | n/a | 17.57 | 18.96 |
| Sales | $1,909,948 | $1,504,023 | $1,232,456 | $1,540,666 |
| Labor | $892,333 | $792,720 | $724,570 | $801,301 |
| Building costs | $213,596 | $301,399 | $659,233 | $375,044 |
| Miscellaneous | $232,361 | $194,240 | $167,159 | $197,251 |
| Gross profit | $571,658 | $215,661 | −$318,507 | $167,069 |
| Building costs as a share * | 11.18% | 20.04% | 53.49% | 24.34% |
| Gross profit as a share * | 29.93% | 14.34% | −25.84% | 10.84% |
The top six, bottom six and all-22 columns are as the brand reported it. The middle-ten column and the share rows are marked *, backed out by weight and carrying the rounding in the published averages.
Rent differs by $445,637 between the highest and lowest building up academies. $659,233 against $213,596 is $445,637, against a revenue difference of $677,492 *, so 50.1% of the $890,165 profit gap between the two groups was signed into a lease before either opened.
A second-year academy at 53.49% occupancy cost gives up more than half its revenue to the landlord. $659,233 on $1,232,456 *, and with labor at 58.79% on top, the two lines alone reach 112.28% of revenue.
The top building up academies out-earn the mature system on margin at 18.5 months. That is 29.93% of revenue against 24.36% for all 293 mature academies *, on rent of 11.18% against 16.90%. The six Kiddie Academy ramping academies with the lowest rent share also had the highest margin.
An average building up academy already bills 70.2% of a mature one. $1,540,666 against $2,193,815 *, on 31.3% of the gross profit, so revenue arrives well before margin does. The second year is where the cost lines decide the outcome.
Discounts available
- Kiddie Academy charges $70,000 instead of $150,000 for each additional academy a new franchisee buys at the outset after paying full price for the first.
- Kiddie Academy charges existing franchisees $85,000 for a second academy and $70,000 for a third or later academy.
- Kiddie Academy charges $125,000 instead of $150,000 to current U.S. military members and honorably discharged veterans under VetFran.
- Kiddie Academy charges $125,000 instead of $150,000 for academies in designated target markets with no Kiddie Academy presence.
From Item 5 of the Kiddie Academy 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
Rent is rent
Costs per square foot
| Group | Revenue a square foot * | Building costs a square foot * | Gross profit a square foot * |
|---|---|---|---|
| Top quarter, mature | $320.36 | $39.41 | $108.16 |
| All mature | $219.38 | $37.07 | $53.43 |
| building up, all 22 | $154.07 | $37.50 | $16.71 |
| Bottom quarter, mature | $138.95 | $36.44 | $8.00 |
Every figure here is marked *, dividing the filed averages by the 10,000 square feet a typical academy occupies.
Building costs are within $2.97 a square foot across the entire system. $39.41 at the top against $36.44 at the bottom *, so the bottom quarter is paying almost exactly what the top quarter pays for the same room and filling it with 43.4% of the revenue.
Moving the bottom quarter to the top quarter’s rent share would multiply its gross profit 3.42 times. Building costs at 12.30% of $1,389,528 is $170,935 against $364,402, a saving of $193,467, which takes gross profit from $80,014 to $273,481 *, and the only routes to that are a cheaper lease or more revenue in the same one.
Revenue a square foot runs $320.36 at the top and $138.95 at the bottom. The gap is $181.41 a foot *, which on a 10,000 foot academy is $1,814,074 a year, or $34,886 a week of tuition.
Gross profit a square foot runs 13.5 times across the system. That is $108.16 against $8.00 *. The bottom quarter turns a whole year and 10,000 square feet into $80,014. That is what an academy earns when rent and staffing ratios meet a half-filled building.
Fees and what it costs to open
Cost to open
| Route | Total investment | Against mature revenue * | Years of mature gross profit * |
|---|---|---|---|
| Leased facility | $670,000 to $1,010,000 | 0.31 to 0.46 times | 1.3 to 1.9 years |
| Purchased facility | $4,935,000 to $8,530,000 | 2.25 to 3.89 times | 9.2 to 16.0 years |
Totals are as the brand reported it; the two right-hand columns are marked. Measured against the $2,193,815 of revenue and $534,330 of gross profit an average mature academy produced.
| Fee | Rate | At the mature average * | At the bottom quarter * |
|---|---|---|---|
| Royalty | 7% of gross revenues | $153,567 | $97,267 |
| Brand Building Fund | 2% of gross revenues | $43,876 | $27,791 |
| Total | 9% | $197,443 | $125,058 |
Rates are as the brand reported it; the dollar columns are marked *.
| Year | Franchised at start | Opened | Exits | Transfers | Franchised at end | Openings as a share of start * |
|---|---|---|---|---|---|---|
| 2023 | 305 | 23 | 2 | 6 | 326 | 7.5% |
| 2024 | 326 | 22 | 4 | 15 | 344 | 6.7% |
| 2025 | 344 | 23 | 4 | 18 | 363 | 6.7% |
Counts are as the brand reported it; the right-hand column is marked *.
The system grew 19.0% in three years and its transfer count tripled. That is 305 to 363 franchised academies, on transfers of 6, then 15, then 18 *. The 2025 figure is 5.2% of the academies open at the start of that year changing hands.
The pipeline is 7.3 years deep at the projected build rate. 262 signed agreements against 36 projected openings *, and at the 23 academies actually opened in 2025 it is 11.4 years.
Franchise fees take 9% of revenue, which is 37.0% of what an average academy keeps as gross profit. $197,443 against $534,330 *, and at the bottom quarter the same 9%, $125,058, is 156.3% of that group’s $80,014.
A purchased Kiddie Academy facility costs 8.4 times a leased one at the low end. That is $4,935,000 against $670,000 *. The trade is 16 years of gross profit at the top of the purchased range against under two at the leased one, in exchange for owning the asset that the bottom quarter’s numbers suggest matters most.
Questions we get asked
Questions owners ask.
How much does a Kiddie Academy franchise make?
Kiddie Academy’s 293 academies open 24 months or more averaged $2,193,815 of sales in 2025, with a median of $2,075,740, according to Item 19 of Kiddie Academy’s 2026 FDD, issued 27 March 2026. Kiddie Academy’s 22 academies open under 24 months averaged $1,540,666. Fees paid to Kiddie Academy come to about 9%* of sales. A Kiddie Academy franchise costs $670,000 to $1,010,000 to open.
What does a Kiddie Academy earn?
The 293 academies open 24 months or more averaged $2,193,815 of revenue in 2025 and $534,330 of gross profit, which is 24.36%. The median was $2,075,740 and $479,211. The top quarter by gross profit averaged $3,203,602 and $1,081,579; the bottom quarter $1,389,528 and $80,014.
Is that a profit figure at Kiddie Academy?
No. Kiddie Academy gross profit is revenue less labor, occupancy cost and miscellaneous costs only. Other revenue, such as state and federal funds and grants, falls outside it. Other costs, including supplies, food and insurance premiums, also fall outside it. So does debt service on the building.
Where does the money go at Kiddie Academy?
Labor takes 46.49% of revenue at the average academy, occupancy cost 16.90% and miscellaneous 12.26%. Miscellaneous has the 9% of revenue that goes to the brand. So the 7% royalty and 2% brand building fee are roughly three quarters of that line.
Why is the bottom quarter so far behind at Kiddie Academy?
The Kiddie Academy bottom quarter bills $1,389,528 against the top quarter’s $3,203,602 while paying $364,402 of rent against $394,096, within 8.1% for what is typically the same 10,000 square feet. Rent at 26.22% of revenue against 12.30% is the single widest cost gap in the system.
Does the Kiddie Academy business improve with age?
The numbers point the other way. The bottom quarter averages 131.41 months open against the top quarter’s 113.84, so the lowest-selling group has been trading 17.6 months longer than the highest-selling one.
What happens in the first two years at Kiddie Academy?
The 22 academies open under 24 months averaged $1,540,666 of revenue and $167,069 of gross profit. Within that group the top six reached 29.93% margin on rent of 11.18% of revenue. Meanwhile the lowest six lost $318,507 each on rent of 53.49%.
How much does a Kiddie Academy franchise cost to open?
A Kiddie Academy franchise costs $670,000 to $1,010,000 to open for a leased facility and $4,935,000 to $8,530,000 to purchase and build one. The initial fee is $150,000 paid in four installments, with reduced-fee programs taking it as low as $70,000.
- Item 19 of the Kiddie Academy FDD reports gross profit as gross revenue less labor, occupancy and miscellaneous costs, including royalties. Other revenue, such as state and federal funds, is left out of that figure.
Questions worth putting to Kiddie Academy
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- How would wages and rent at a new Kiddie Academy location compare with the figures in the filing? Item 19 of the Kiddie Academy FDD publishes revenue, labor, occupancy, other costs and gross profit for 293 mature academies and 22 ramping academies.
- Which factors does Kiddie Academy see in its highest-selling locations, such as trade area, years open and size?
- 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 Kiddie Academy 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 checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What share of your revenue goes to the building?
We review your unit economics and cash forecast and build your reporting around occupancy cost against the system’s 16.90%, labor against 46.49%, and revenue a square foot against $219.38.
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Kiddie Academy reads against the rest of the early education and child care group: Celebree School · Lightbridge Academy · Primrose Schools · Soccer Shots · The Goddard School · The Learning Experience. The early education and child care guide compares all of them on the same figures.
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.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- 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 Kiddie Academy Domestic Franchising, 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. Kiddie Academy® is a registered 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: Kiddie Academy Domestic Franchising, LLC, 2026 Franchise Disclosure Document, issued 27 March 2026.