KidStrong Franchise in 2024: Costs, Fee & FDD
Discover whether KidStrong is the right investment for you. This in-depth analysis covers the brand’s unique offerings, potential profitability, and key considerations, helping you make an informed decision. Explore the full insights here.
Table of Contents:
KidStrong is an innovative franchise that focuses on child development, blending physical education with cognitive and social-emotional learning. Founded by Matt and Megin Shoup, both parents and advocates for children’s fitness, KidStrong has rapidly gained significance in the industry as a leader in holistic child development. The franchise was created out of a need to fill a gap in the market for structured programs that focus not only on physical strength but also on mental and emotional resilience for children. This unique approach has positioned KidStrong as a pioneer in a niche yet growing sector of child development franchises.
The core service of KidStrong is its comprehensive training program for children, typically aged from walking age up to about 11 years old. The program integrates physical training with cognitive challenges and social-emotional learning to help children become well-rounded individuals. The sessions are designed to improve motor skills, enhance problem-solving abilities, and build confidence, making it a favorite among parents who want to invest in their child’s all-around growth. In addition to the main program, KidStrong also offers ancillary products such as branded merchandise and home workout equipment, catering to a market of parents and guardians deeply invested in their children’s development.
As of now, KidStrong operates over 50 locations across the United States, with plans for further expansion both domestically and internationally. The franchise has seen tremendous growth, with each location serving hundreds of families weekly. This scale and reach have solidified KidStrong’s position as a go-to destination for child development programs, drawing a diverse clientele from various communities who are eager to participate in their unique and effective training programs.
KidStrong offers a robust support system for its franchisees, which includes comprehensive initial training, ongoing support, and access to a well-established operational framework. The franchise provides marketing assistance, site selection support, and extensive training programs that cover everything from daily operations to staff training. This strong support network is a key factor in the success of each franchise location, ensuring that franchisees are well-prepared to deliver KidStrong’s unique services and maintain the high standards that have become synonymous with the brand.
KidStrong Franchise Insights
- KidStrong’s franchisees benefit from a proven model with a 100 locations nationwide, demonstrating a strong and growing demand for their child development programs.
- Each KidStrong location typically serves around 400-600 members, with classes often reaching full capacity, reflecting the high interest and engagement in their programs.
- The franchise has seen a 72% year-over-year unit growth compared a stagnant industry at 0%.
KidStrong Franchise Key indicators
Unit Growth YOY (%)
72%
vs industry 0%
Total U.S. Franchised Units
89
3-Year Failure Rate
0%
vs industry 10%
Total Investment
$343K-$691K
How much does it cost to open a KidStrong franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a KidStrong franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a KidStrong franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a KidStrong below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Pre-Paid Rent And Lease Deposit | $7,500 | $24,000 |
| Startup Marketing Fee | $1,000 | $1,000 |
| Architect Fees | $4,500 | $15,750 |
| Leasehold Improvements | $95,000 | $323,475 |
| Fixtures, Furnishings, And Other Fixed Assets | $5,000 | $6,000 |
| Equipment Package Fee (Includes Training Floor) | $95,000 | $110,000 |
| Electronics | $2,500 | $5,000 |
| Office Supplies | $200 | $1,500 |
| Vinyl | $7,500 | $10,000 |
| Signage | $7,000 | $11,000 |
| Permits, Licenses And Legal/Professional Services | $1,200 | $10,000 |
| Training (Transportation, Lodging, Etc.) | $4,500 | $5,500 |
| Retail And Print | $1,500 | $10,000 |
| Initial Pre-Sales Marketing And Grand Opening Event | $35,000 | $55,000 |
| Insurance Deposits | $250 | $3,000 |
| Additional Funds (3 Months) | $35,000 | $60,000 |
| Total | $342,650 | $691,225 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a KidStrong franchise, the required capital involves both the initial investment costs and a net worth requirement set by the franchisor. Let’s take a closer look below:
- Initial Investment The total estimated initial investment for a KidStrong franchise typically ranges from $343,000 to $691,000. This includes all startup costs such as the franchise fee, equipment, leasehold improvements, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement KidStrong generally requires franchisees to have a minimum of $150,000 in liquid assets. This ensures that the franchisee has sufficient funds to cover unforeseen expenses and maintain financial stability during the startup phase.
- Net Worth Requirement The franchise also assesses the overall net worth of the franchisee. While the specific net worth requirement can vary, it is generally recommended that franchisees have a net worth of at least $500,000. This includes the value of assets like real estate, investments, and personal property, minus any liabilities.
How much does a KidStrong franchise owner make?
Calculating the salary of a KidStrong franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a KidStrong franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
KidStrong Revenue & Gross Sales
While specific revenue figures for KidStrong franchises are not publicly disclosed, the franchise is well-regarded for its strong financial performance, driven by its unique child development programs and growing demand in the youth fitness and education sector. Typically, franchises in this industry, especially those offering a comprehensive approach like KidStrong, can achieve impressive sales figures, particularly in markets with a high concentration of young families seeking premium developmental services for their children. By focusing on delivering high-quality programs and leveraging the brand’s strong reputation and marketing support, franchise owners have the potential to generate substantial revenue and achieve solid returns on their investment.
Which key factors impact the average revenue performance of KidStrong franchisees?
The performance of U.S. franchisee median gross sales for KidStrong this past year likely benefited from several key factors. The growing awareness and prioritization of children’s physical and cognitive development have driven increased demand for KidStrong’s unique programs. Additionally, the expansion of new locations and the franchise’s ability to quickly adapt to changing market conditions, including offering hybrid in-person and virtual classes, may have contributed to sustained growth. Economic recovery and the return of children to structured activities post-pandemic also likely played a role, as parents sought high-quality developmental programs, further boosting franchisee sales compared to the previous year.
KidStrong Franchise Operational Costs
Operational costs for a KidStrong franchise are the ongoing expenses required to run the day-to-day operations of the business. These costs are essential for maintaining the business’s functionality and ensuring smooth operations. For a KidStrong franchise, operational costs include:
- Staffing Costs Wages, salaries, and benefits for coaches, administrative staff, and any other employees involved in delivering the KidStrong programs and managing the facility.
- Rent or Lease Payments The cost of leasing the facility where KidStrong classes are held, including monthly rent, property taxes, and insurance. The space must be suitable for both physical activities and educational sessions.
- Utilities Expenses for electricity, water, internet, and other utilities necessary for running the facility and supporting the various programs offered by KidStrong.
- Equipment Maintenance and Upgrades Costs associated with the upkeep, replacement, and upgrading of equipment used in the physical training and cognitive development programs. This includes regular maintenance to ensure safety and functionality.
- Supplies and Materials Ongoing expenses for purchasing educational materials, cleaning supplies, office supplies, and any other necessary items to support the daily operations of the franchise.
- Local Marketing and Advertising While national marketing efforts may be covered by an ad fund, local marketing and advertising are crucial for attracting and retaining members in your specific location. This includes promotional events, local sponsorships, and online advertising.
- Technology and Software Expenses for maintaining and upgrading the software and technology systems used for class scheduling, member management, and point-of-sale transactions.
Careful planning and budgeting for these operational costs are crucial for the financial health and success of your KidStrong franchise.
KidStrong Franchise Fees
When considering the ongoing operational costs of a KidStrong franchise, it’s essential to account for the various fees that will be regularly incurred. These fees are crucial for maintaining the business’s functionality and ensuring smooth operations. Below are some of the key fees you can expect:
- Royalty Fee During the first 35 months after opening, the Royalty Fee is 7% of Gross Sales; thereafter, it increases to 8.5% of Gross Sales. This fee is deducted weekly (or on another recurring basis designated by the franchisor) from your bank account via an Electronic Funds Transfer System (EFT).
- Brand Fund Contribution You will be required to contribute up to 1.65% of Gross Sales for the prior month to the Brand Fund. This fee is deducted monthly (or on another recurring basis designated by the franchisor) from your bank account via EFT.
- Ongoing Marketing Services Fee Currently set at $750 per month, this fee is also deducted monthly (or on another recurring basis designated by the franchisor) from your bank account via EFT.
Additionally, there might be other fees associated with running the franchise, such as local marketing expenses, technology fees, or costs related to special programs or services offered by the franchise. It’s important to review all potential costs carefully and plan accordingly to ensure the financial health of your franchise.
KidStrong Franchise Earnings
While specific earnings data for KidStrong franchises isn’t publicly disclosed, we can provide a well-rounded overview based on industry norms and KidStrong’s growing presence in the child development sector. KidStrong, with its unique blend of physical, cognitive, and social-emotional training for children, has the potential to generate impressive revenue, especially in markets where there’s a high demand for quality child development programs.
The financial performance of a KidStrong franchise can be influenced by several factors, including location, the effectiveness of local marketing efforts, and the quality of program delivery. Industry benchmarks for similar franchises in the child development and fitness space suggest that gross sales can vary, but franchises that are well-managed and strategically located often see significant success.
When considering potential earnings, it’s essential to factor in the initial investment as well as ongoing operational costs like staffing, facility maintenance, and marketing. KidStrong’s strong support system and comprehensive training programs equip franchisees to better navigate these challenges and work toward profitability.
As a prospective franchisee, conducting thorough market research and understanding local demand for child development services is crucial. By leveraging KidStrong’s proven model and focusing on delivering exceptional value to families, there’s a strong potential to align with the earnings seen in successful franchises within this industry. Connecting with existing franchisees and financial experts can also offer valuable insights into setting realistic financial goals.
How to Open a KidStrong Franchise
Becoming a KidStrong franchisee involves a well-defined process designed to ensure that both the franchisor and the potential franchisee are a good fit. Here’s a step-by-step overview:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Preliminary Discussion After your initial inquiry, you’ll have a preliminary discussion with a franchise representative. This conversation helps both parties understand if there’s a mutual interest and alignment of goals.
- Franchise Application If both parties are interested in moving forward, you’ll be asked to complete a franchise application. This application allows KidStrong to assess your qualifications, financial situation, and suitability as a potential franchisee.
- Discovery Day You may be invited to a Discovery Day at KidStrong’s headquarters. During this visit, you’ll meet the leadership team, learn more about the business model, and get a first-hand look at the operations. It’s an opportunity for you to ask any remaining questions and get a feel for the company culture.
- Signing the Franchise Agreement If both you and KidStrong are ready to move forward after Discovery Day, the next step is to sign the franchise agreement. This formalizes your commitment to becoming a franchisee and outlines the terms of your relationship with the franchisor.
- Securing Financing With the franchise agreement in hand, you’ll work on securing financing if necessary. This may involve working with lenders or financial institutions to fund your initial investment and startup costs.
- Site Selection and Build-Out Once financing is secured, you’ll begin the process of selecting a location for your KidStrong franchise. The franchisor will provide guidance on site selection and help with the design and build-out of your facility to meet brand standards.
- Training Program Before opening, you’ll participate in an extensive training program provided by KidStrong. This training covers everything from day-to-day operations and program delivery to marketing and customer service.
- Grand Opening and Start of Operations After completing training and getting your facility ready, you’ll launch your KidStrong franchise with a grand opening event. This marks the official start of your business operations, with ongoing support from the franchisor as you build your membership base and grow your business.
Pros & Cons
Pros
Unique and Growing Market: KidStrong operates in a niche market focusing on holistic child development, combining physical, cognitive, and social-emotional training, which is increasingly in demand among parents.
Proven Business Model: With over 50 locations and growing, KidStrong has demonstrated a successful and scalable business model, which can provide confidence in its potential for profitability.
Community Impact: Operating a KidStrong franchise allows you to make a positive impact in your community by contributing to the development and well-being of children, which can be highly rewarding.
Brand Recognition: KidStrong’s reputation as a leader in child development gives franchisees a strong brand to leverage, which can help attract and retain members.
Cons
Market Saturation Risks: As KidStrong continues to expand, there may be concerns about market saturation, especially in areas where multiple locations are established, potentially impacting growth opportunities.
Intensive Management: Running a KidStrong franchise requires a hands-on approach, particularly in managing staff and maintaining the quality of programs, which can be demanding for those seeking a more passive investment.
Dependence on Local Market: Success can heavily depend on the local market’s demand for child development programs. If the community is not receptive, it could affect membership growth and overall profitability.
