Kiddie Academy

The franchise fee of $150,000 is approximately 3x higher than the typical range for childcare franchises. What specific services, training, and support justify this premium pricing?

Can you provide details on the 4 total litigation cases, including the nature of disputes, outcomes or settlements, and what the pending case involves?

Three of the 4 litigation cases name the franchisor as defendant. What were the primary allegations or claims made against the franchisor in these cases?

The transfer fee of $50,000 is 2.5x higher than typical. Is this fee waived, reduced, or negotiable under certain circumstances, such as for strong performers or multi-unit operators?

Your financial data shows median gross sales of $2.1M, significantly above the category average. What percentage of your 345 units actually achieve or exceed the median sales figure?

What explains the substantial range in unit performance (bottom quartile at $1.46M vs. top quartile at $3.1M)? What are the primary variables driving this variance?

The initial contract term is 15 years. How many renewal options are available after the initial term, and what are the renewal terms and fees?

Can you clarify the 20 specific types of non-curable defaults listed in the termination clause that do not allow opportunity to cure?

Regarding the supplier approval requirement: how frequently are supplier changes requested by franchisees denied, and what is the typical approval timeline for new vendor submissions?

The franchisor can set minimum and maximum enrollment prices according to the operational control clause. How often are price restrictions adjusted, and do they apply uniformly across all markets?

Four units ceased operations in 2024 (beyond standard closures and transfers). What circumstances caused these units to 'cease other' and were franchisees offered support or exit strategies?

Personal guarantees are required from all owners, and spouses must guarantee even without ownership. Can you explain the rationale for requiring spousal guarantees in non-spousal ownership structures?

Of the 4 transfers completed in 2024, how many were franchisor-approved transfers to third parties versus owner-initiated buyouts or family transfers?

What is the historical renewal rate for franchisees whose initial 15-year term expires? How many units have renewed versus exited at the end of their initial term?

The non-compete is 2 years and 20 miles. Is this enforceable in all states where you operate, and have there been disputes regarding non-compete violations?

Can you provide the underlying reasons for the 3 cases where the franchisor was named as defendant? Were any settlements made and did they involve operational policy changes?

How does your encroachment protection policy work in practice? Have any territory disputes been filed by franchisees, and how were they resolved?

The termination rate is 0.3% annually. Of the units terminated, what percentage resulted from franchisee non-compliance versus franchisor-initiated actions?

What percentage of Item 19 financial data comes from units open for at least 2 full years versus newer units? Does performance data exclude the first-year startup period?

Are there any circumstances under which the $150,000 franchise fee could be reduced (multi-unit discount, area developer rights, etc.), and what is the pricing structure for multi-unit operators?