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Review of the Kiddie Academy Franchise Opp and Startup Costs

Households that have two parents are finding that they both need to work full time just to make their ends meet any more. For single parent households, the ability to have comprehensive care for their children while at work is critically important! Today’s parents want more than just a basic location where their child will do more than just watch movies all day. They want an all-encompassing educational experience that will give their children the tools they need for tomorrow’s successes.

That’s why many parents are turning to the Kiddie Academy if there is one located in their community. More than just daycare, this organization focuses on providing learning fun in a nurturing environment. By becoming a franchisee, you’re joining an organization that is accredited by AdvancED thanks to its character reinforcement programs that include family style dining and skill development through creative play. Does this sound like an exciting opportunity to you?

What Are the Initial Costs and Fees For This Franchise Opportunity?

After going through the initial application process that includes a comprehensive background check because you’re going to be working with children, there will be a credit check that will take a look at your entire financial situation as it stands currently. Your credit score must be above 650 in order for you to qualify. New franchisees must have a minimum net worth of $450 in order to qualify for this opportunity and $175 of that net worth must be in some form of liquidity.

The franchise fee is $120k, which is rather high considering similar opportunities in this field, but you’ll also be joining a fully accredited institution. The franchise agreement is in place for an initial term of 15 years and it is fully renewable. Absenteeism is not allowed with this franchise as part of your franchise agreement requires you to be an owner-operator.

All told, the initial start-up costs at a minimum can be expected to be $372k. On the high end of the estimate, the initial investment could run as high as $702k depending on your local factors. In addition to these initial fees and costs, you’ll also be required to pay a 7% royalty to the organization from your gross sales. If accepted as a franchisee, you’ll have access to third-party financing options. Veteran’s receive a $25k discount off of the initial fee.

Partnerships qualify to meet these minimum requirements, although each partner must have the minimum 650 credit score in order to qualify.

So what could the gross sales be for a new Kiddie Academy? In the last year, the average location brought in over $1 million in gross sales, of which over $250k was in net profits. Although this does not mean you’ll experience this level of success once you open your doors, it is proof that this concept and business plan for this organization are extremely successful.

What Kind of Support Do Franchisees Receive?

Once approved for a franchise, you’ll receive an extensive amount of director training as a new franchisee. It begins with a 15 day training course that is delivered at the headquarters of this organization in Abingdon, Maryland. Once that is successfully completed, you’ll also receive four additional weeks of training in the programs and process of Kiddie Academy. There are also ongoing refreshers that are mandatory to complete and you’ll have lots of site visits to make sure you’ve got everything you need.

What’s wonderful about the training process is how hands-on it is for a daycare setting. You’ll learn the same way that your kids will learn in your new franchise location, in a fun and engaging way. As the training process concludes, you’ll also receive additional support in building out the right environment that has been proven to provide educational success. You’ll get licensing help if needed, pre-launch assistance to get your new franchise off the ground, and marketing help to ramp-up excitement for your new Kiddie Academy.

Is Kiddie Academy the Right Investment To Make?

Although the model of success for Kiddie Academy has been proven, there are some concerns with the long-term viability of this organization. There have been recent reductions in the number of franchises by over 10% and the organization is facing several lawsuits involving improper staffing, risk violations, and state violations based on local inspections. Although there are reports of over 60 new locations in various stages of development, there are also several reports of the extensive franchising fee being forfeited because of an inability to find an approved location.

The issue that Kiddie Academy faces is that even though they recruit outside of the educational realm for directors and franchisees, some states require a child care degree or an educational degree to provide a teaching environment. This applies whether the child 10 months old or 10 years old. Before beginning the application to become a franchisee of this organization, it is highly recommended that you look at applicable state and local laws for this type of business so that you know what kind of licensing and background may be required.

The financial opportunities are there and can help you make this franchise opportunity be a success for you. There are over 11 million children under the age of 5 in some form of child care every week in the United States. A majority of parents prefer a center-based type of learning environment instead of home-based care or family arrangements. The industry itself generates over $36 billion in revenues every year.

The shift to educational care is forecast to continue, which means if your community has a need for this service, you’ll have a chance to find success while doing something you love. By 2015, there could be as many as 21 million children in need of care in the US! If you can establish relationships with your families and kids and bring in quality educators to help you, then your new Kiddie Academy has a lot of potential! The process begins when you apply online to have your credit checked. If you can pass these requirements, then you’ve got an amazing opportunity just waiting for you right now!

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