About Genius Kids Franchise
Genius Kids is an early childhood education franchise that has been franchising since 2010.
The brand operates preschool and childcare centers that combine academic enrichment with creative play, offering programs designed to develop cognitive, social, and motor skills in young children.
Each location provides a nurturing environment with curriculum driven instruction for toddlers through pre kindergarten age students.
Genius Kids Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | The greater of 6% of monthly Gross Revenues or a minimum of $1,000 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Minimum is $500 per calendar month after opening, except for the first 3 months after opening, you must spend at least $9,000 total for grand opening advertising | National brand fund |
| Total Investment Range | $276,300 – $909,000 | Includes build-out, inventory, working capital |
The investment range of $276K–$909K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 6% of monthly Gross Revenues or a minimum of $1,000 per month) and marketing fee (Minimum is $500 per calendar month after opening, except for the first 3 months after opening, you must spend at least $9,000 total for grand opening advertising) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Additional Curriculum Fees (Note 2) | $0 | $20,000 |
| Rent – 3 months (Note 3) | $30,000 | $60,000 |
| Leasehold Improvements (Note 4) | $50,000 | $450,000 |
| Furniture and Fixtures (Note 5) | $20,000 | $35,000 |
| Computers, Technology, and Security System | $10,000 | $30,000 |
| Playground Equipment (Note 6) | $65,000 | $150,000 |
| Signage | $3,000 | $5,000 |
| Classroom Supplies | $2,000 | $5,000 |
| Inventory and Other Supplies | $1,500 | $4,000 |
| Local Marketing (Note 7) | $9,000 | $15,000 |
| Insurance (Note 8) | $2,500 | $5,000 |
| Uniforms | $300 | $1,000 |
| Licenses, Permits and Professional Fees | $2,500 | $8,000 |
| Staffing Expenses – 3 Months (Note 9) | $10,500 | $36,000 |
| Additional Funds – 3 Months (Note 10) | $20,000 | $35,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000, plus additional training fees above if applicable |
| Renewal Fee | $10,000 |
| Technology Fee | Varies based on the service provided to you; currently, $65 to $125 per hour for website modifications |
| Audit Fee | Currently $250 per hour plus our cost of audit, including the charges of any independent accountant and travel and lodging expenses |
| Additional Curriculum Fee | Currently $10,000 per each additional Curriculum offered at your Center |
| Additional Training Fees | Currently $300 per day per person, plus reimbursement of our expenses |
| Continuing Education Session Fees | Currently $300 per day per person, plus reimbursement of our expenses |
| Genius Kids Conference Registration Fee | Conference fee (up to $1,000 per person), plus travel, transportation, lodging, meals, and incidental expenses in addition to compensation of the people you send to any conferences |
| Relocation Fee | $10,000 |
| Insurance Reimbursement | Cost of premiums, plus reasonable service charge which will vary under circumstances |
| Interest and Late Charges | Lesser of 1.5% per month or highest rate of interest allowed by applicable law on the outstanding balance, plus $50 administrative fee and collection costs |
| Reporting Failure Fee | $500 per report that you fail to provide |
| Cost of Enforcement or Defense | All costs including accounting and attorneys’ fees |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 10 days |
| Classroom Training | 39-58 hours |
| On-the-Job Training | 31-38 hours |
| Training Location | Usually in California at a location specified by franchisor or electronically/virtually. On-the-job training at a Genius Kids child learning center. |
| Additional Training | Franchisor may provide additional optional or required training and continuing education sessions at franchisee's cost (currently $300 per person per day plus reimbursement of expenses). On-site training may also be required or provided upon request at the same cost. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Generally a 2-mile radius around the Center, not to exceed city limits |
| Description | A limited protected territory generally encompassing a 2-mile radius around the approved site, not to exceed the city limits. The exact size depends on factors like metropolitan area, population, demographics, center size, student capacity, traffic patterns, parking, and proximity to major roads. The franchisor will not operate or grant third parties the right to operate a child learning center physically located in the franchisee's Territory under the Genius Kids name. However, the franchisee will not receive an exclusive territory and may face competition from other Genius Kids franchisees, company-owned outlets, or other distribution channels. The franchisor can operate or allow others to operate similar businesses outside the Territory, or businesses inside the Territory under different marks, or non-competitive businesses under Genius Kids marks. The franchisor can also sell products/Curriculum inside or outside the Territory through various channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | One (1) additional term of ten (10) years |
| Renewal Fee | $10,000, plus current "Additional Curriculum Fee" for the second and each additional Curriculum(s) |
| Renewal Conditions | Give written notice; sign new franchise agreement (which may have materially different terms); upgrade and remodel Center to current standards; provide evidence of property control and licensure; sign general release; pay renewal fee. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transferee must meet franchisor requirements, including signing a new franchise agreement on then-current form, paying a transfer fee, and signing a release. Transferee must have a valid license to operate the Center. |
| Termination for Cause | Franchisor may terminate if franchisee loses right to occupy premises; voluntarily abandons franchise; loses required license/permit or fails to cure citation; owner convicted of certain crimes; fails to comply with federal, state, or local law; operates in a manner presenting safety/health hazard; exhibits reckless disregard for well-being of children/employees/customers; fails to cure material default impairing goodwill; violates student referral policies or engages in Target Marketing; submits false sales reports/financial statements; consistently fails to submit reports; fails to pay fees; consistently fails to remit payments to suppliers/creditors; makes assignment for benefit of creditors or admits inability to pay; files for bankruptcy; makes unauthorized assignment/transfer; makes material misrepresentations on application; fails to offer programs/Curriculum as specified; breaches other agreements; or otherwise materially breaches agreement or fails to comply with specifications/standards/procedures. |
| Non-Compete Period | During the term of the franchise, and for a period of two (2) years following expiration, termination, or assignment of the Agreement. |
| Non-Compete Details | During the term, franchisee cannot directly or indirectly operate, own, manage, be employed by or consult with any Competitive Business (other than a valid Genius Kids franchise) or divert students. After termination/expiration/assignment, for 2 years, franchisee cannot directly or indirectly operate, own, manage, be employed by or consult with any Competitive Business that is located, operating, or serving students in the Restricted Area (approved location, 25-mile radius from approved location, or 25-mile radius from any other Genius Kids child learning center, or search area and 50-mile radius from search area if no approved location at termination). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Center must at all times be under the direct, day-to-day, full-time supervision of the franchisee (or a managing or majority owner if an entity). This person must have successfully completed the Initial Training Program and use their best efforts in operation. The owner-operator must be involved in day-to-day operations and be the license holder as required by state law. A manager ("Supervisor") is also required for daily operation and management. |
| Required Suppliers | Franchisor is the sole supplier for the proprietary educational and development programs and Curriculum. Franchisor or its affiliates are also the sole approved supplier of training. There is one approved supplier for certain software and technology services. For other items (equipment, technology, supplies, etc.), franchisor may designate specific or approved suppliers. |
| Supply Restrictions | Franchisee must purchase only approved playground equipment and children’s toys that meet specifications. All marketing and promotion must meet minimum standards and specifications and be approved by franchisor. Franchisee must use a sole approved supplier for software for student enrollments, tuition, sign-in/out. Franchisee must purchase and use a POS system, computers, fax machine, printer, projectors, and approved smart board systems. |
| Franchisor Revenue from Suppliers | Franchisor intends to earn a profit on any items or services sold to franchisees. Suppliers may provide franchisor or its affiliates with discounts or credits based on the volume of purchases made by franchisees. For the fiscal year ended December 31, 2022, no affiliate received payments or other consideration from suppliers for franchisee purchases, and the franchisor did not receive any revenue from franchisees for the payment of goods or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Genius Kids Franchise Earnings — Item 19
Genius Kids does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Genius Kids Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Genius Kids System Growth
Genius Kids currently operates 24 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 5 | 30 |
| 2021 | 2 | 6 | 27 |
| 2022 | 1 | 2 | 26 |
Transfers: 1 | Closures: 2
State Registrations
Registered in 2 states: CA, NY
Franchisor Financials (Item 21)
Audited by CPA Auditor, Inc. for year ending December 31.
Genius Kids Franchise — FAQ
Similar Education & Tutoring Franchises
Interested in Genius Kids?
Get free info on this franchise. We will send you a detailed FDD report by email.