Neighborhood Kids

Neighborhood Kids

Information based on 2022 FDD

Children's Services · Education

Investment min
$393K
Total: $393K–$789K
Avg gross revenue
$1M
Unit-level, 2022
Franchise fee
$70K
Per current disclosure
Royalty
7%
of gross revenue
Locations
4
Franchising since 2018

Description

What is Neighborhood Kids?

Neighborhood Kids, established in 1978, stands as a pioneering force in children's educational enrichment, offering a unique blend of learning and development programs that have been refined over four decades. This boutique educational franchise has maintained an intimate, community-focused approach while delivering high-quality educational services that prepare children for academic success.

The franchise operates with a distinctive philosophy that combines traditional educational principles with modern teaching methodologies, creating an engaging environment where children can thrive. Each Neighborhood Kids center is designed to feel like a natural extension of home, fostering a comfortable space where young minds can explore, learn, and grow.

What sets Neighborhood Kids apart is their personalized approach to childhood education. Their programs are tailored to different age groups and learning styles, ensuring that every child receives the attention and support they need to develop crucial academic and social skills. From early literacy and mathematics to creative arts and critical thinking, their comprehensive curriculum addresses all aspects of child development.

Franchise owners benefit from a proven business model that has weathered various economic cycles while maintaining its commitment to educational excellence. The brand's selective growth strategy has allowed them to maintain high standards across all locations, ensuring consistent quality and community impact. With a strong focus on both educational outcomes and business success, Neighborhood Kids offers entrepreneurs the opportunity to make a meaningful difference in their communities while building a sustainable business in the growing education sector.
  • 45+ years proven educational experience
  • Strong unit revenue performance metrics
  • Established children's programming expertise
  • Mid-tier accessible investment structure
  • Localized community-focused business model
  • Specialized education sector positioning

Location Analysis

Where Neighborhood Kids wins

Neighborhood Kids, established in 1978, currently maintains a select number of company-owned units with no active franchise locations, presenting a unique opportunity for early franchise investors in the children's education sector. While historical geographic data is limited, the brand's four-decade operational history suggests a proven business model ready for strategic franchise expansion.

The children's education market demonstrates strong resilience and growth potential, particularly in suburban areas with high concentrations of families with school-age children. Ideal locations for Neighborhood Kids franchises should target communities with median household incomes above $75,000, strong population growth, and a high percentage of families with children aged 5-12.

Potential franchisees should focus on high-growth metropolitan areas, particularly in states with robust education spending and favorable demographics. Key success factors include proximity to residential neighborhoods, easy accessibility from major arterial roads, and locations near complementary businesses such as dance studios or sports facilities.

The current absence of franchise units presents both an opportunity and a challenge - while franchisees can be first-movers in their markets, they'll need to establish brand recognition from the ground up. Markets with strong population growth, such as the Southeast and Southwest regions, offer particularly promising expansion opportunities.
Total US locations
4
Franchise units
N/A
Corporate locations
4
Avg. sq. footage
N/A
Territory check

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Financial Analysis

The numbers behind Neighborhood Kids

Avg gross revenue$1,223,692
Investment range$392,833 – $788,944
Investment midpoint$590,889
Brand fund1%
Royalty7%
Franchise fee$70,000
Min. net worth
Min. liquid capital
Neighborhood Kids requires an investment of $392,833 to $788,944, positioning it as a mid-tier opportunity within children's education franchising. This range sits below the sub-sector's average maximum of $1,002,465 but above the minimum threshold, making it accessible to qualified investors seeking established educational concepts. The children's education sector benefits from consistent parental investment priorities and growing demand for supplemental learning programs, particularly in STEM and enrichment activities.

With 45 years of operational history since 1978, Neighborhood Kids demonstrates remarkable longevity in the competitive children's services market. However, the current four-unit system size suggests either selective growth or recent restructuring, requiring careful evaluation of expansion strategies and franchisor support infrastructure. The reported gross revenue of $1,223,692 substantially exceeds the sub-sector average of $624,329, indicating strong unit-level performance potential.

Ideal investors should possess strong community connections and experience in education or child-focused services. The business model typically requires hands-on management and staff oversight, making it suitable for owner-operators rather than passive investors. Territory exclusivity and demographic density become critical factors given the localized nature of children's programming.

Prospective franchisees must thoroughly review the Franchise Disclosure Document to understand the limited system size implications, ongoing support structure, and growth trajectory. The substantial revenue performance suggests operational viability, though investors should evaluate market saturation and competitive positioning within their target territories.
Did you know? Did you know that launching your own Neighborhood Kids franchise - a thriving childcare and early education business that serves families in your community - requires a total investment between $392,833 and $788,944, which covers everything from the $70,000 franchise fee to equipment, facility setup, and working capital needed to open your doors and start making a difference in children's lives?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$393K–$789K
Most common
$392,833
Minimum
$590,889
Midpoint
$788,944
Maximum

Per FDD Item 7, total initial investment ranges from $392,833 to $788,944. The midpoint $590,889 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$2M$1M$900K$600K$300KN/A
$1M
2020
2021
2022
Avg
$408K
YOY change (2021 -> 2022)

According to Item 19 of the Franchise Disclosure Document, Neighborhood Kids has an average gross revenue of $1M. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

0% YoY
543210
2019
2020
2021
2022
4 units open as of 2022 FDD

2022 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Neighborhood Kids's 2022 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2022 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Neighborhood Kids franchise typically ranges between $392,833.00 and $788,944.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2022. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Neighborhood Kids
Neighborhood Kids
$1M avg revenue · 0+ US franchises

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