FDD Analysis 2025 FDD

Children's Orchard Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Children's Orchard's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Children's Orchard FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$206,700 - $320,500
Franchise Fee$20,000

Investment Breakdown

Initial Franchise Fee$20,000 - $25,000
Leasehold Improvements$21,000 - $50,000
Signs$5,000 - $9,000
Fixtures and Supplies$40,000 - $55,000
POS Software and POS System$5,700 - $8,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee4% of gross sales
Marketing/Advertising Fee5% of gross sales

Other Ongoing Fees

TaxesVaries
Transfer FeeVaries
Renewal FeeVaries
Remodeling ExpensesVaries
Costs and Attorneys’ FeesVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$351,303/year
Disclosure Year2025
Reporting Units—
Revenue VarianceModerate variance (typical spread)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

15

Total Units

-3

Net Growth (YoY)

-16.7%

Growth Rate

Franchised Units15
Company-Owned Units—

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

Children's Orchard Overview

Full franchise profile and details

Is Children's Orchard Worth It?

Investment analysis and evaluation

Specialty Retail Revenue Rankings

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All Specialty Retail Franchises

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