If you are looking towards opening a Building Kidz Worldwide LLC Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening their franchise in your location.
Building Kidz Worldwide LLC was founded in 2002 and they began franchising in 2015, about 5 years ago. The current CEO of the company is Vineeta Bhandari and they have their corporate head office at 303 Vintage Park Dr., #130 Foster City, CA 94404, USA. As of the 2021 Franchise Disclosure Document, there are 24 franchised Building Kidz School locations in the USA. Building Kidz School has franchise locations in 7 states. The largest region is the West with 18 franchise locations.
Building Kidz focuses to creating a community where children are challenged intellectually, become empowered and interested in lifelong learning, and engage in the arts to accelerate the development of their Confidence, Commitment, and Character.
Here are areas where you are expected to spend money and the cost associated with it;
Table of Content
Initial Investment Range
$199,000 to $463,500
8 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third – party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two – thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Building Kidz Worldwide LLC and its affiliates are also members of their respective local Cooperative and each company – owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company – owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
Liquidated Damages Under Area Development Agreement
This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
All costs and expenses associated with the audit, reasonable accounting and legal costs.
This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Building Kidz Worldwide LLC if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out – of – pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Building Kidz Worldwide LLC if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Building Kidz School is required to defend your unsuccessful claim against it.
- Veteran Incentives: 10 percent off franchise fee.
- Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If requirements are met, franchisees can renew for one additional term of 15 years.
- Financial Assistance: Building Kidz Worldwide LLC has relationships with third – party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Initial Investment: $199,000 – $463,500
- Net-worth Requirement: $200,000 – $1,000,000
- Liquid Cash Requirement: $100,000 – $250,000
- Ongoing Initial Franchise Fee: $50,000
- Ongoing Royalty Fee: 7%
- Ad Royalty Fee: 1%