Have you ever dreamed of entering the child care industry? Does the growth potential of the industry excite you to explore the untapped opportunity in the sector? Have you been continuously following the Kiddie Academy and wanted to partner with them?
Congratulations! You have certainly landed on the right platform, where we’ll not only cover the essentials of the Kiddie Academy franchise but also shed light on the estimated cost involved in owning one of their locations.
Additionally, you would also learn about the potential margin and the current position of Kiddie Academy in the child care space.
So, let’s jump right into it.
- Brand: Kiddie Academy
- Founded: 1981
- Key People: Pauline and George Miller
- Industry: Daycare
- No. of outlet: 300+
- Area served: US
- Franchise Fee: $65,000
- Royalty Fee: 7%
- Brand building fund: 2%
- Initial Investment: $370,000 and $6.5 million
Table of Contents
Overview of Kiddie Academy Franchise
Kiddie Academy was founded way back in 1981 by Pauline and George Miller, who envisioned bringing in an exciting learning atmosphere and a better fun experience for every kid at their center.
Pauline and George Miller opened their first academy in Baltimore County, Maryland, and considering the demand and growth prospects of the childcare industry in the United States, Kiddie Academy opened their arm to partner with aspiring individuals in 1992.
With nearly 40+ years of extensive experience in the child care industry and a strong passion to provide better learning and caring opportunities, Kiddie Academy opened over 50 locations in 1991 that have now grown into a chain of over 300+ academies across the United States.
The chain embraces a wide range of curriculum for children of all ages, right from infants to 12-year-olds.
In 2000, Kiddie Academy introduced its flagship summer program, CampVentures®, which not only provides a fun-filled atmosphere for kids but also enables them to utilize their quality holiday by learning some amazing stuff.
Quick facts on Kiddie Academy
| Sr No. | Type | Private |
|---|---|---|
| 1 | Trade Name | Kiddie Academy |
| 2 | Industry | Childcare |
| 3 | Founded | 1981 |
| 4 | Founders Or Parent Company | Pauline and George Miller |
| 5 | Corporate Headquarters | Baltimore County |
| 6 | Number of locations | Over 300+ |
| 7 | Area served | United States |
| 8 | Model | Franchise |
| 9 | Service offering | Childcare for infants, toddlers, and kids from age 5 to 12 |
| 10 | Annual Gross Revenue | $1,632,080 in 2021 |
| 11 | Website | https://kiddieacademy.com/ |
Why should you consider owning the Kiddie Academy franchise?
- Established brand image in the industry:
- Unlike a fresh childcare startup, Kiddie Academy possesses over 40+ years of experience in the child care industry, and their team with plenty of relevant knowledge may add to the extra benefit for franchise owners.
- Ample experience before starting to sell its franchises:
- It is interesting to learn that Kiddie Academy didn’t directly jump into selling its franchises; instead, they focused more on concreting their business model, and it nearly took them 10 years to open the door for franchises.
- Booming industry:
- At present, the global childcare industry is valued at $57 billion and is expected to grow at a rapid pace in the upcoming year as well. Thus, partnering with a leading chain in the industry couldn’t be a better decision than this.
- Over 54% of current franchises own more than one location:
- According to the official website, over 54% of Kiddie Academy partners own more than one location in the United States, firmly showcasing the brand’s popularity and demand among entrepreneurs and parents.
How much does a Kiddie Academy franchise cost?
Interested candidates will have the option to purchase either a leased or purchased entity, and the investment cost will drastically vary depending on the model you choose.
To become a Kiddie Academy franchise partner, you’ll need to have an initial investment capability of $370,000 to $825,000 for the leased property and $3.3 million to $6.77 million for the purchased facility.
The franchise fee for Kiddie Academy is $65,000 to $145,000. Additionally, the approved candidates should also meet the financial requirements, such as a liquid capital of $250,000 (if leasing) and $600,000-$750,000 (if purchasing).
Also, make sure that your net worth is $750,000 (if leasing) and $1 million (if purchasing).
Kiddie Academy Franchise Royalty Fee
The royalty fee for Kiddie Academy is 7%, and in addition to this, the brand also charges a brand building fund of 2%, which is usually calculated based on monthly gross sales.
Cost breakup for Kiddie Academy Leased Entity
| Name of Fee | Low | High |
|---|---|---|
| Total Initial Fee | $65,000 | $145,000 |
| Lease Deposit | $20,000 | $35,000 |
| Tenant Contributions for Improvements and Construction Soft Costs | Varies | |
| Professional Fees and Loan Fees | $20,000 | $30,000 |
| Kitchen Equipment and Supplies | $25,000 | $30,000 |
| Supplies/Equipment for Inside of Academy, Playground and Online Training Component | $80,000 | $170,000 |
| Outdoor Fixed Playground Equipment | $45,000 | $150,000 |
| Computer Hardware and Software and Classroom Technology | $25,000 | $60,000 |
| Office and Lobby Furniture, Office Equipment and Supplies, and Telephone System | $10,000 | $30,000 |
| Indoor and Outdoor Signage | $20,000 | $30,000 |
| Travel and Living Expenses While Training and Plan Review | $2,000 | $5,000 |
| Transportation Vehicles and Equipment | $0 | $5,000 |
| Insurance and Utility Deposits | $2,000 | $10,000 |
| Business Licenses | $1,000 | $5,000 |
| Start-Up Marketing and Advertising Expenses | $35,000 | $35,000 |
| Additional Funds/Working Capital – 3 months after opening | $25,000 | $85,000 |
| ESTIMATED TOTAL | $370,000 | $825,000 |
Cost breakup for Kiddie Academy Purchased Entity
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $65,000 | $145,000 |
| Real Estate Acquisition and Construction Costs | $2,810,000 | $5,365,000 |
| Professional Fees and Loan Fees and Soft Costs | $135,000 | $510,000 |
| Kitchen Equipment and Supplies | $20,000 | $30,000 |
| Supplies/Equipment for Inside of Academy, Playground and Online Training Component | $80,000 | $170,000 |
| Outdoor Fixed Playground Equipment | $125,000 | $285,000 |
| Computer Hardware and Software and Classroom Technology | $25,000 | $60,000 |
| Office and Lobby Furniture, Office Equipment and Supplies, and Telephone System | $10,000 | $30,000 |
| Indoor and Outdoor Signage | $20,000 | $30,000 |
| Travel and Living Expenses While Training and Plan Review | $2,000 | $5,000 |
| Transportation Vehicles and Equipment | $0 | $5,000 |
| Insurance and Utility Deposits | $2,000 | $10,000 |
| Business Licenses | $1,000 | $5,000 |
| Start-Up Marketing and Advertising Expenses | $35,000 | $35,000 |
| Additional Funds/Working Capital 3 months after opening | $25,000 | $85,000 |
| ESTIMATED TOTAL | $3,355,000 | $6,770,000 |
How much is Kiddie Academy Franchise Profit Margin?
The profitability figures aren’t mentioned on the official website. However, we’ll discuss a few major factors that will provide enough insight into the chain and its profitability numbers.
- Since inaugurating their first childcare institute in 1981 and making their way to embrace the franchise model, Kiddie Academy is now a chain of over 300 units.
- To sum up this message, it is quite evident from their growth that the chain opened nearly 8 stores on a yearly basis.
- Additionally, over 54% of their current unitholders own and operate more than one location across the states.
- The childcare sector is booming and is expected to grow at a flourishing pace in the coming years, enabling interested applicants to choose Kiddie Academy as one of the most viable options in the industry.
- Kiddie Academy has been awarded by several renowned franchising firms, which definitely helps them cement their market presence among their competitors.
To conclude, the daycare industry presents a great investment opportunity for aspiring entrepreneurs seeking to delve into this exciting sector. They can eventually expect an EBITDA of nearly 20–30%.
What are the requirements to own a Kiddie Academy franchise?
The requirements for Kiddie Academy are quite straightforward. Let’s check them out.
- Interested candidates should have available liquidity of $250,000–$750,000 and a net worth of $750,000–$1 million.
- Although the chain provides financial support, the potential applicant should at least have a credit score of 650 or higher.
- The candidates should be passionate about serving in the daycare industry and possess the necessary financial and communication skills to operate the daycare institute.
- While the Kiddie Academy does provide the necessary training program, having prior experience in the industry will be an added advantage.
Does Kiddie Academy franchise provide financing support?
Absolutely! Yes. Kiddie Academy provides comprehensive support to potential franchisees to secure funding from regional and local lenders at reasonable rates and alternative financing options like reinvesting their 401(k) or IRA funds.
In addition to this, you’ll also get help in making a customized business plan, preparing loan applications, and evaluating the right loan packages for your academy.
What are the alternatives to Kiddie Academy Franchise?
There isn’t any doubt that Kiddie Academy is an exciting opportunity for potential candidates, and with a legacy spanning nearly 40 years in the daycare industry, there are only a few brands that can compete with them.
Let’s check on them
Legacy Academy Franchise
Melissa Turner founded the Legacy Academy in 1998 and operates nearly 15 locations across the United States. The initial investment for Legacy Academy may also range between $3.5 million and $6.1 million.
However, considering the growth prospects, investment requirements, and number of academies present in the country, Kiddie Academy certainly has an upper hand in the sector.
You can check it out in detail.
Read more: How to Start a Legacy Academy Franchise – Cost & Fee
How to apply for Kiddie Academy Franchise?
To get a Kiddie Academy location, one should fill out the franchise form, which is available on their official website.
The highlighted link will take you to the application form, where you will need to fill in personal details like name, email ID, phone number, city, state, and other information.
Once the form is submitted, the team will call you within 1–3 days to guide you further in the next process.
Official details
| Website/Franchise form | Official Link |
| Phone Number | 800-554-3343 |
Wrap Up
Kiddie Academy undoubtedly brings a promising business opportunity for aspiring candidates looking to open their own daycare center by partnering with a reputed chain.
The chain holds over 40+ years of legacy in operating daycare centers and has managed to grow from a single unit to over 300+ locations over these years.
With the given investment capital and financing support, Kiddie Academy should be at the top of the list of any daycare franchise aspirants.
Want to explore more? Then check out below franchising opportunities.
Food & Beverages Franchise, Bakery Franchise, Home Improvement, Car wash, Real Estate, and Tea & Café Franchise
FAQ
How much does one require to open a Kiddie Academy franchise?
The initial investment for Kiddie Academy could range between $370,000 and $6.5 million.
How long has Kiddie Academy been around?
The academy was founded in 1981, and it has been over 40 years of successful operation at Kiddie Academy.
How many locations does Kiddie Academy have?
Currently, there are over 300 locations across the United States.
