This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Kidville’s Item 19 Financial Performance Representations (2012 FDD)

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  The franchise is to operate a Facility under the “Kidville” trademark that provides newborns through 5-year-old children and their families a wide array of developmental classes like music, gym, art, and enrichment classes; provides indoor playgrounds, birthday and themed parties, and related services; and features retail boutiques selling various children and family-oriented products.

• The total investment necessary to begin operation of a Kidville franchise operated in a Hub Facility is $599,710 to $897,400 (excluding real estate lease/acquisition costs). This includes $76,500 to $392,500 that must be paid to the franchisor or affiliate.

• The total investment necessary to begin operation of a Kidville franchise operated in an Annex Facility is $289,950 to $449,600 (excluding real estate lease/acquisition costs). This includes $51,500 to $205,500 that must be paid to the franchisor or affiliate.

Gross Sales of Kidville Franchises, By Sales Volume Band

• The financial performance representation appearing below is a historical representation of 2011 performance. It provides the number of Kidville Facilities the Gross Sales of which during the 2011 calendar year (the “2011 Year”) fell within certain sales volume bands.

• As of December 31, 2011, there were 10 Kidville Facilities that had operated for the full 2011 Year, including 6 franchised Facilities (2 of which opened in January 2011) and 4 Facilities that were affiliate-owned and operated since inception.

• 3 other franchised Facilities that opened during 2011 are not included in this financial performance representation because of their limited time in business.

• 5 of these 10 Kidville Facilities operate in the New York metropolitan area, where the Kidville business started and where it has substantial name recognition. The greater the number of Kidville Facilities operating in a state or other market area, the greater the goodwill and public recognition of the company’s Marks in that area are likely to be.

• The 10 Kidville Facilities operated for an average of 3 1/2 years as of the end of the 2011 Year.

• Although pricing for Kidville classes and other services varies widely by market, Kidville prices typically are at a premium in comparison to many competitors in the market.

• The actual annual gross sales numbers reported below do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit.

• The following is a non-exclusive list of the types of expenses a franchisee might incur:  1) labor costs, including taxes and benefits; 2) cost of goods sold; 3) advertising and marketing expenses; 4) rent, utilities, common area maintenance, and other changes to occupy the Facility; 5) training costs; 6) costs of maintenance, insurance, security, and supplies; 7) royalties, Brand Fund fees, and local advertising expenses; 8) debt service; 9) professional fees; and 10) taxes. You might incur other costs, which could vary from Facility to Facility and in different market areas.

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