FRANCHISE·WATCH·DESK

ITEMS 5–7 · 2026 FDD

How much is a Kids United franchise?

Per Kids United's 2026 FDD, the initial franchise fee is $55,000 (Item 5) and the total initial investment runs $220K–$464K (Item 7); once open, you pay an ongoing royalty of 6.5% of gross sales (Item 6).

Franchise fee · Item 5

$55,000

one-time, to buy in

Royalty · Item 6

6.5%

of gross sales, ongoing

Total investment · Item 7

$220K–$464K

franchisor's own estimate

Kids United vs education & children medians37 systems benchmarked
Cost lineKids UnitedSector median
Initial franchise fee ITEM 5$55,000$50,000
Ongoing royalty ITEM 66.5%7.5%
Total initial investment ITEM 7$220K–$464K$179K–$388K

MEDIANS: LATEST FDD FILINGS (≤24 MONTHS OLD) OF 37 EDUCATION & CHILDREN SYSTEMS · FULL EDUCATION & CHILDREN BENCHMARK →

Breakeven framingwhat it costs · what it drags

The buy-in is the smaller number. The larger one is the drag: 6.5% of every sale leaves before rent, labor, or your salary — so breakeven depends on volume you cannot know from the FDD; use the Item 19 figures as a starting point, not a promise.

To open (Item 7)

$220K–$464K

all-in investment range

Franchise fee (Item 5)

$55,000

upfront, one-time

Royalty (Item 6)

6.5%

of sales, ongoing

If a unit does this in annual sales…$500K/yr

Starts at a placeholder of $500K — a round figure for the sector, not from Kids United’s filings. Set your own figure and check it against this brand's Item 19 and what owners tell you.

Royalty you'd pay / yr

$33K

6.5% of sales, before profit

Over a 10-yr term

$325K

royalties alone, excl. ad fund

This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.

This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, rent, supplies, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).

Build a real pro-forma for Kids United with a buyer-paid CPA

Kids United cost questions, answered from the filing

How much is a Kids United franchise?

Per Kids United's 2026 FDD, opening a franchise requires an initial franchise fee of $55,000 (Item 5) and a total initial investment of $220K–$464K (Item 7). Item 7 is the franchisor's own estimate — treat the low end as a floor, not a budget.

What royalty does Kids United charge?

Kids United charges an ongoing royalty of 6.5% of gross sales, per Item 6 of its 2026 FDD. The median across 37 education & children systems tracked here is 7.5%.

Does Kids United tell you what franchisees earn?

Partly — Kids United makes a financial performance representation in Item 19 of its 2026 FDD. Unit revenue is not owner profit: subtract royalties, ad fund, rent, labor, and debt service.

The Kids United validation checklist

questions built from this brand's own filings · read them all on the profile

Want this as a checklist you can take to the calls?

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Before you sign anythingfree · 30 min · no commission

A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Kids United’s numbers, including talking you out of a bad deal.

Don Drummond, CPA — Virginia #43775 · what I charge

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