Kiddie Academy Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

Ambrosio’s Take

Kiddie Academy, ranked No. 100 on Entrepreneur’s 2026 Franchise 500, continues its steady growth, adding 19 franchised locations in 2025 to reach 363 franchised outlets, or 364 systemwide when including its 1 company-owned location. For a leased facility, the $590,000 to $1,010,000 investment range compares favorably against the $2,148,198 average revenue for the 315 reporting outlets, translating to a 2.7:1 sales-to-investment ratio, ahead of most other leased-facility comparisons in this post, including Goddard School (2.0:1) and The Learning Experience (1.9:1). The gap between mature and ramping locations is stark: the 293 Mature Academies averaged $534,330 in gross profit (24.4% of revenue) in 2025, compared to just $167,069 (10.8% of revenue) for the 22 Ramping Academies (franchisee-owned outlets open for at least 12 months, but less than 24 months), underscoring how much runway a new Kiddie Academy franchisee should expect before hitting full stride. Purchasing rather than leasing the facility changes the picture substantially, pushing the investment as high as $8,530,000 and dropping the ratio to 0.3:1, in line with what other franchises in the childcare category show when land purchase and construction are factored in.

Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Kiddie Academy franchise, based on Item 7 of the company’s 2026 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Kiddie Academy franchise, based on Items 5 and 6 of the company’s 2026 FDD

Section III – Number of franchised and company-owned Kiddie Academy outlets at the start of the year and the end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD

Section IV – News updates on the Kiddie Academy franchise opportunity

Section V – Presentation and analysis of Kiddie Academy’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 FDD, including information on the:

• 2025 average gross revenue, labor expense, occupancy expense, miscellaneous expense, and gross profit for the bottom quarter, top quarter, and all 293 Mature Academies (i.e., franchisee-owned Kiddie Academy outlets that have been open for at least 24 months) that submitted the required expense information to Kiddie Academy

• 2025 average gross revenue, labor expense, occupancy expense, miscellaneous expense, and gross profit for the bottom quarter, top quarter, and all 22 Ramping Academies (i.e., franchisee-owned Kiddie Academy outlets that have been open for at least 12 months, but less than 24 months) that submitted the required expense information to Kiddie Academy

Section VI – Key ratios, comparables, computations, and analyses for the Kiddie Academy franchise opportunity (exclusive content for Platinum subscribers)

Section I – Kiddie Academy Franchise Costs

• Kiddie Academy franchise costs (for a leased facility), based on Item 7 of the company’s 2026 FDD:

• Total Initial Fee:  $70,000 to $150,000
• Lease Deposit:  $30,000 to $35,000
• Tenant Contributions for Improvements and Construction Soft Costs:  varies
• Professional Fees and Loan Fees:  $30,000 to $50,000
• Kitchen Equipment and Supplies:  $25,000 to $50,000
• Supplies/Equipment for Inside of Academy, Playground, and Online Training Component:  $125,000 to $195,000
• Outdoor Fixed Playground Equipment:  $125,000 to $180,000
• Computer Hardware and Software and Classroom Technology:  $25,000 to $75,000
• Office and Lobby Furniture, Office Equipment and Supplies, and Telephone System:  $10,000 to $25,000
• Indoor and Outdoor Signage:  $30,000 to $50,000
• Travel and Living Expenses While Training and Plan Review:  $3,000 to $5,000
• Transportation Vehicles and Equipment:  $0 to $5,000
• Insurance and Utility Deposits:  $4,000 to $10,000
• Business Licenses:  $3,000 to $5,000
• Start-Up Marketing and Advertising Expenses:  $45,000
• Additional Funds/Working Capital – 3 Months After Opening:  $65,000 to $130,000
• Total Estimated Kiddie Academy Franchise Costs:  $590,000 to $1,010,000

Section II – Kiddie Academy’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Kiddie Academy’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2026 FDD:

• Initial Fee:  $70,000 to $150,000
• Royalties:  7% of Gross Revenues
• Brand Building Fund:  2% of Gross Revenues

Section III – Number of Franchised and Company-Owned Kiddie Academy Outlets

Franchised

2023

• Outlets at the Start of the Year:  305
• Outlets at the End of the Year:  326
• Net Change:  +21

2024

• Outlets at the Start of the Year:  326
• Outlets at the End of the Year:  344
• Net Change:  +18

2025

• Outlets at the Start of the Year:  344
• Outlets at the End of the Year:  363
• Net Change:  +19

Company-Owned

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2024

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2025

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Kiddie Academy Franchise

• Momentum in Motion: Q1 2026 Growth at Kiddie Academy

• Kiddie Academy Celebrates New Milestone with 350th Academy Location

• New Kiddie Academy of St. Peters Emphasizes Family-First Approach to Early Education

• New Kiddie Academy of Meridiana Prioritizes Community Connection

• Kiddie Academy of Harrisburg Under New Ownership

• Multi-Unit Franchise Owners Open Kiddie Academy of Sarasota

• Kiddie Academy Ranked No. 100 on Entrepreneur’s 2026 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Kiddie Academy Franchise (Item 19, 2026 FDD)

• The information below represents an actual historic financial performance representation.

• The information was obtained from the financial results reported to Kiddie Academy by its existing franchisee-owned outlets for the full calendar year ended December 31, 2025 (the “2025 Reporting Period”). This information has not been audited or verified by Kiddie Academy or a third party.

• As of December 31, 2025, there were 363 franchised Academies. As of that date, 23 of these Academies (6.3% of the total) had been open and operational for less than 12 full months and have therefore been excluded from the 2025 Reporting Period data set.

• Of the remaining 340 Academies, 25 Academies (7.4% of the total) had failed to report the required information for the full calendar year ending December 31, 2025. The results of these Academies have also been excluded from the 2025 Reporting Period data set.

• Accordingly, the financial performance information presented in the tables below for the 2025 Reporting Period represents the results of the remaining 315 Academies that had reported results as of December 31, 2025 (the “2025 Reporting Academies”).

• The results reported for the 2025 Reporting Academies are divided into two groups: the 293 Academies open 24 months or more as of the end of the 2025 Reporting Period (the “2025 Mature Academies”) and the 22 Academies open less than 24 months as of the end of the 2025 Reporting Period (the “2025 Ramping Academies”).

• Financial performance information about Kiddie Academy’s 2025 Mature Academies and 2025 Ramping Academies includes Gross Revenue, Labor, Occupancy, Miscellaneous Expenses, and Gross Profit.

• All Academies offer substantially the same services and products to the public. However, the actual financial performance among Academies varies substantially.

• The results presented in the tables below indicate the Gross Profit, which is the Gross Revenue minus the listed operating expenses.

• The time periods expressed in the chart below are not meant to be an indication as to when or if an Academy will reach maturity. Each Academy’s growth rate will vary by location, competitive environment, the region and market area in which the unit is located, labor costs, programs, and the individual franchisee’s marketing efforts and management skills.

• Accordingly, the information presented should only be used as a reference guide in conducting an independent analysis of the proposed business.

Part 1 – Mature Academies (Data for Calendar Year Ended December 31, 2025)

• The data in the table below shows the results achieved by the Mature Academies in the listed categories. 131 Academies or 45% of the 2025 Mature Academies reported Gross Revenue above the reported average. 125 Academies or 43% of the 2025 Mature Academies reported Gross Profit above the reported average.

Average

• Number of Academies:  293
• Average Number of Months Open:  118.57

• Average Gross Revenue:  $2,193,815 (100.0%)
• Average Labor Expense:  $1,019,835 (46.5%)
• Average Occupancy Expense:  $370,668 (16.9%)
• Average Miscellaneous Expense:  $268,982 (12.3%)
• Average Gross Profit:  $534,330 (24.4%)

Median

• Number of Academies:  293
• Median Number of Months Open:  101.50

• Median Gross Revenue:  $2,075,740
• Median Labor Expense:  $983,102
• Median Occupancy Expense:  $363,623
• Median Miscellaneous Expense:  $257,451
• Median Gross Profit:  $479,211

Top Quarter by Gross Profit

• The data in the table below shows the results achieved by the “Top Quarter” of Mature Academies measured by Gross Profit. This group is comprised of 73 Academies. 28 Academies or 38% of the Top Quarter reported Gross Revenue above the reported average. 27 Academies or 37% of the Top Quarter reported Gross Profit above the reported average.

Average

• Number of Academies:  73
• Average Number of Months Open:  113.84

• Average Gross Revenue:  $3,203,602
• Average Labor Expense:  $1,350,900
• Average Occupancy Expense:  $394,096
• Average Miscellaneous Expense:  $377,027
• Average Gross Profit:  $1,081,579

Median

• Number of Academies:  73
• Median Number of Months Open:  100.17

• Median Gross Revenue:  $2,932,736
• Median Labor Expense:  $1,281,118
• Median Occupancy Expense:  $407,546
• Median Miscellaneous Expense:  $356,756
• Median Gross Profit:  $991,054

Bottom Quarter by Gross Profit

• The data in the table below shows the results achieved by the “Bottom Quarter” of Mature Academies measured by Gross Profit. This group is comprised of 73 Mature Academies. 34 Academies or 47% of the Bottom Quarter reported Gross Revenue above the reported average. 46 Academies or 63% of the Bottom Quarter reported Gross Profit above the reported average.

Average

• Number of Academies:  73
• Average Number of Months Open:  131.41

• Average Gross Revenue:  $1,389,528
• Average Labor Expense:  $763,185
• Average Occupancy Expense:  $364,402
• Average Miscellaneous Expense:  $181,927
• Average Gross Profit:  $80,014

Median

• Number of Academies:  73
• Median Number of Months Open:  111.77

• Median Gross Revenue:  $1,343,525
• Median Labor Expense:  $731,987
• Median Occupancy Expense:  $343,272
• Median Miscellaneous Expense:  $186,759
• Median Gross Profit:  $105,058

Part 2 – Ramping Academies (Data for Calendar Year Ended December 31, 2025)

• The data in the table below shows the results achieved by the Ramping Academies. 9 Academies or 41% of the Ramping Academies reported Gross Revenue above the reported average. 13 Academies or 59% of the Ramping Academies reported Gross Profit above the reported average.

Average

• Number of Academies:  22
• Average Number of Months Open:  18.96

• Average Gross Revenue:  $1,540,666 (100.0%)
• Average Labor Expense:  $801,301 (52.0%)
• Average Occupancy Expense:  $375,044 (24.3%)
• Average Miscellaneous Expense:  $197,251 (12.8%)
• Average Gross Profit:  $167,069 (10.8%)

Median

• Number of Academies:  22
• Median Number of Months Open:  19.27

• Median Gross Revenue:  $1,465,325
• Median Labor Expense:  $791,259
• Median Occupancy Expense:  $322,896
• Median Miscellaneous Expense:  $184,530
• Median Gross Profit:  $225,960

Top Quarter by Gross Profit

• The data in the table below shows the results achieved by the “Top Quarter” of Ramping Academies measured by Gross Profit. This group is comprised of the 6 reporting 2025 Ramping Academies with the highest Gross Profit. 2 Academies or 33% of the Top Quarter reported Gross Revenue above the reported average. 3 Academies or 50% of the Top Quarter reported Gross Profit above the reported average.

Average

• Number of Academies:  6
• Average Number of Months Open:  18.51

• Average Gross Revenue:  $1,909,948
• Average Labor Expense:  $892,333
• Average Occupancy Expense:  $213,596
• Average Miscellaneous Expense:  $232,361
• Average Gross Profit:  $571,658

Median

• Number of Academies:  6
• Median Number of Months Open:  18.70

• Median Gross Revenue:  $1,792,830
• Median Labor Expense:  $826,122
• Median Occupancy Expense:  $196,636
• Median Miscellaneous Expense:  $216,364
• Median Gross Profit:  $556,036

Bottom Quarter by Gross Profit

• The data in the table below shows the results achieved by the “Bottom Quarter” of Ramping Academies measured by Gross Profit. This group is comprised of the 6 Ramping Academies with the lowest Gross Profit. 2 Academies or 33% of the Bottom Quarter reported Gross Revenue above the reported average. 2 Academies or 33% of the Bottom Quarter reported Gross Profit above the reported average.

Average

• Number of Academies:  6
• Average Number of Months Open:  17.57

• Average Gross Revenue:  $1,232,456
• Average Labor Expense:  $724,570
• Average Occupancy Expense:  $659,233
• Average Miscellaneous Expense:  $167,159
• Average Gross Profit:  -$318,507

Median

• Number of Academies:  6
• Median Number of Months Open:  16.82

• Median Gross Revenue:  $1,089,677
• Median Labor Expense:  $706,701
• Median Occupancy Expense:  $650,206
• Median Miscellaneous Expense:  $164,365
• Median Gross Profit:  -$437,520

Definition of Terms

• Gross Revenue – Gross sales based on actual operating results as reported monthly by franchisees to Kiddie Academy, representing registration fees, tuition, and other amounts charged to families by the franchisee.

• Labor – Employee-related expenses including: wages, salaries, bonus, commission, payroll taxes, training, insurance benefits, and worker’s compensation expenses (where applicable) as reported monthly by franchisees to Kiddie Academy. This also includes the cost of an Academy Director(s).

• Occupancy – Includes rent, common area maintenance, real estate taxes, and percentage rent (if any). This includes other lease-related charges, such as: maintenance, security, trash removal, association dues, and shopping center marketing expenses as reported monthly by franchisees to Kiddie Academy, if applicable.

• Miscellaneous – Includes other (discretionary) variable expenses related to the operation of the business, including: royalties and Brand Building Fees, telephone, advertising, utilities, cleaning services, and postage as reported monthly by franchisees to Kiddie Academy.

• Gross Profit – Gross Revenue minus Labor, Occupancy, and Miscellaneous Expenses. Other non-listed revenue (i.e., state and federal funds, grants, etc.) and expenses (i.e., supplies, food, insurance premiums, etc.) may impact an Academy’s net profit.

Section VI – Kiddie Academy Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️