KIDDIE ACADEMY - FDD UFOC ITEM 1 Detail
Itemi
THE FRANCHISOR AND ANY
PARENTS. PREDECESSORS AND AFFILIATES
jOur Parent, Predecessors and affiliates
Kiddie Academy International,
Inc. ("KAI") was incorporated on June 28, 1995 as a Delaware
corporation and was, prior to March 1, 1999, one of three affiliated companies:
KAI; Kiddie Academy Child Care Learning Centers, Inc. ("Learning
Centers"); and Kiddie Academy Franchising Systems, Inc ("Franchising").
As of March 1, 1999, these three corporations were consolidated into KAI, which
became the single remaining operating entity.
Prior to the 1999
consolidation, our franchise operations were managed by Franchising and the
company owned Kiddie Academy child care learning centers, the first of which
opened in 1981, were managed by Learning Centers. From March, 1999 until
December 31, 2002, all of our business operations (franchising and corporate)
were conducted by and through KAI.
In late 2002, KAI formed and
is the sole member of three Delaware limited liability companies: Kiddie
Academy Domestic Franchising, LLC; Kiddie Academy Foreign Franchising, LLC; and
Kiddie Academy Corporate Centers, LLC. Each limited liability company conducts
certain discrete functions formerly conducted exclusively by KAI. For purposes
of this Offering Circular, Kiddie Academy Domestic Franchising, LLC conducts
and is responsible for all franchise sales and business functions within the United States of America. Accordingly, Kiddie Academy Domestic Franchising, LLC will be
your franchisor.
To simplify the language in
this Offering Circular, "Kiddie Academy," "us,"
"our" or "we" means Kiddie Academy Domestic Franchising,
LLC, the Franchisor, unless otherwise stated in writing. "You" means
the person or entity who is awarded a franchise. If a corporation, partnership
or limited liability company is the franchisee, "you" will also
include the franchisee''s shareholders, partners or members.
JJntil June, 2007. our principal business
address was: 108 Wheel Road. Bel Air, Maryland 21015. Currently, our
principal business address (and that of our affiliates) is Kiddie Academy
Corporate Offices, 3415 Box Hill Corporate Center Drive, Abingdon, Maryland 21009. Our agent for service of process in your State is listed on Exhibit A.
The Business
We offer you the right to
operate a Kiddie Academy Franchise (the "Kiddie Academy Franchise" or
the "academy"). TThe first Kiddie Academy Child Care
Learning Center opened in 1981 and we have been selling franchises since
"^^Z _Kiddie Academy Franchises offer learning programs and child care
services for children between the ages of six weeks and 12 years. The programs
and services provided at Kiddie Academy Franchises are used primarily by
parents who seek quality, education-based child care. Kiddie Academy Franchises are open year-round, usually accommodate between 120 and 200 children, and
operate, typically, from 6:30 a.m. to 6:30 p.m., Monday through Friday.
If you qualify, you must find,
with our assistance, an acceptable location for your academy, and then if you
are awarded a franchise, you must design, construct, equip and operate your
academy according to systems we have developed during the past �2 years; (the
"Kiddie Academy Systems"). You also must develop and operate your
academy according to all of the
Item Page
Our Education Department is
located at the Kiddie Academy Corporate Offices in Abingdon, Maryland. The
Education Department, working in conjunction with our Curriculum Advisory
Committee (which is comprised of individuals from inside and outside the Kiddie Academy System who have extensive experience in early childhood education and/or child
care), maintains and continually updates the Kiddie Academy Curriculum. The
Education Department establishes developmental milestones for each age group
attending Kiddie Academy Franchises and develops curriculum related materials,
including supportive activities and child assessment practices, for the Kiddie Academy Curriculum. The Education Department also establishes guidelines for the
entire Kiddie Academy System so that high quality, developmentally appropriate programs are
established and maintained at all Kiddie Academy Franchises. The most recent
early childhood education research and trends are used to maintain and update
the Kiddie Academy Curriculum.
The preschool and
kindergarten portions of the Kiddie Academy Curriculum have been accredited by
the Departments of Education of Maryland and Pennsylvania. Further, the Kiddie Academy Curriculum you will be using in your academy is the same one used in all
corporate academies. Accreditation is a widely accepted goal among child care
center operators and Kiddie Academy strongly encourages our franchisees to
obtain, with the Education Department''s assistance, accreditation from
national, regional and state accreditation agencies, such as the Commission on
International and Trans-Regional Accreditation (CITA) and the National
Association for the Education of the Young Child (NAEYC). and the various state
Departments of Education for their early childhood programs. The costs associated
with such accreditation are the responsibility of the Franchisee.
CITA Certification. During
2007. we sought and received corporate certification from CITA. CITA is a
trans-regional accrediting organization consisting of the Western Association
of Schools and Colleges, the North Central Association of Schools and Colleges,
the Southern Association of Colleges and School, and Middle States Commission
on Elementary Schools. Currently, CITA accredits over 30,000 schools with 20
million students and one million teachers in over 100 countries world-wide. It
has tremendous resources and is dedicated to achieving advancements in
education on a national and international basis. Kiddie Academy� is the very
first educational corporation to be certified by CITA (as opposed to the
accreditation of individual schools) and the corporate certification will speed
up the accreditation process for your individual academy and lower the cost of
obtaining CITA certification. Certification from CITA means that based upon the
judgment of the reviewing team from CITA (each member of the team represented
one of the four member organization that comprise CITA). Kiddie Academy meets all of the educational, financial and other standards for corporations, and that
we support
our franchised locations in pursuing, achieving and maintaining quality school
improvement processes.
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{ Formatted: Justified
The Kiddie Academy Curriculum. ''
Each Kiddie Academy Franchise offers developmental Iy appropriate,
education-based child care programs designed by our Education Department to
promote each child''s intellectual, social, physical and emotional growth (the
"Kiddie Academy Curriculum"). Besides the traditional areas of
language arts, mathematics, science, social studies and creative arts, the
Kiddie Academy Curriculum offers programs in foreign language, sign language
and character, education.� The Kiddie Academy Curriculum
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consists of several thousand pages incorporated into
nine (9) bound volumes. The following age-specific programs are included within
the Kiddie Academy Curriculum.
1.
The
"NewBeginnings"Infant Program: In the Infant Program, Kiddie Academy personnel work individually with each child, accommodating each child''s
physical, cognitive and psychosocial stages of development. During the early
stages of development, infants are provided with toys and materials to
stimulate fine motor skills. Once early skills are mastered, infants are
introduced to new challenges which enhance and foster skills at the next level.
2.
The
"Discovering Me" Toddler Program: The Toddler Program promotes
social/emotional, physical and language development. Fun and educational
materials are provided to encourage children to explore, experiment and gain an
understanding of the world around them. Individualized and group activities are
included in the Program.
3.
The
"Exploring My World" Two-Year-Old Program: Two-year-olds are encouraged
to develop their language skills through interactive communication and other
activities. Daily activities may include story time, learning games and
independent choice activities. All activities in this Program are designed to
accommodate the short attention spans and developmental needs of two-year-olds.
4.
The
"I Can Do It" Three-Year-Old Program: The Three-year-old Program
promotes the development of imagination and language. Three-year-olds are
encouraged to speak in full sentences, listen to short stories, identify shapes
and colors, and begin to recognize individual letters of the alphabet. The
Program further promotes independence, cooperation and mutual respect.
5.
The
"Ready, Set, Go!" Four-Year-Old Program: The Four-year-old Program
focuses on the development of pre-reading and writing skills. Motor skills are
continuously developed through indoor and outdoor activities. Emphasis is
placed on each child''s readiness for school.
6.
The
"On My Way" Five-Year-Old Program: Activities in the Five-year-old
Program enable the children to apply concepts, thought processes and skills
during planned learning experiences. Emphasis is placed on recognizing upper
and lower case letters, developing phonetics awareness and recognizing letters
by their sounds. Emphasis is also placed on preparing the children for
elementary school.
7.
The
"Creative Explorers" School Age Program: The primary emphasis of the
School Age Program is to provide a safe, secure and enjoyable learning
environment for the children. The program includes activities in arts and
crafts, science and discovery, dramatic play and constructive building.
Further, the Program permits children to socialize in an age-appropriate
setting.
8.
The
"Camp Adventure " Summer Program: The Summer Program portion of
The Kiddie Academy Curriculum focuses on recreation and socialization through
outdoor activities and interactive field trips. The goal of this Program is to
foster learning in a creative, relaxed and fun atmosphere.
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9. Character Education: Children should be exposed to
Character Education on a regular basis and The Kiddie Academy Curriculum does
just that. We encourage teachers and assistant teachers to build upon themes of
ethical responsibility, cultural awareness, empathy and positive social
relationships on a daily basis. The Character Education portion of the Kiddie
Academy Curriculum has been designed to interact with and support the ideas and
skills the children are already learning.
phi Id care centers are
subject to many state and local governmental regulations and licensing
requirements. These regulations and requirements concern, for example: the
fitness and adequacy of buildings and equipment; the appropriateness of
materials and supplies; qualifications of staff; the ratio of staff to children
in each classroom; staff training; records-keeping; dietary requirements; daily
curriculum; and health, fire and safety standards. You, as the academy
owner/operator, must obtain a child care license before you open for business.
This license must be maintained as long as you own and operate your Kiddie
Academy Franchise. Your Kiddie Academy Franchise will be managed by a Director
who, in most cases, is required by law to have a degree in education and a
certificate in early childhood education. In addition, you will hire qualified
staff and teachers as required by your state''s licensing authority and Kiddie Academy. If your academy operates a Kindergarten program or other educational
programs that are regulated by your state''s Department or Board of Education,
you may be required to obtain accreditation or approval from that entity. We
provide advice and support to our franchisees in obtaining such accreditation
and/or approval. Construction of child care centers must also comply with local
zoning requirements, which vary from jurisdiction to jurisdiction.
Our real estate, construction
and operations departments will work closely with you to make sure your academy
represents the highest quality physical plant, operational condition and
educational status in the industry.
Kiddie Academy Features. All Kiddie Academy Franchises incorporate a number of features that are designed to promote child
safety and support The Kiddie Academy Curriculum-Kiddie Academy Franchises
include a variety of systems and features that permit greater visibility
throughout the academy and provide for enhanced security for the children. All
academies contain interactive educational toys, supplies and equipment,
including educational carpets and wall decorations. Our programs also emphasize
continuous communication between teachers and parents concerning each child''s
development. Kiddie Academy believes that this communication is
critical to maintaining high levels of parental confidence and satisfaction.
The Kiddie Academy Reference and Electronic Support System. As a supplement to the on site and interpersonal
support provided to our Franchisees, we utilize a web-based Intranet site (the
"Kiddie Academy Reference and Electronic Support System" or the
"KARES System") that allows you, as a Kiddie Academy franchisee, to
obtain support from us electronically twenty-four hours a day. The KARES System
includes Kiddie Academy System news, industry news, group discussion forums,
private question and answer (Q & A) sessions and an e-mail system.
Moreover, the KARES System provides every Franchisee access to System-wide
statistics and an extensive electronic library that includes a wide array of
standard forms and manuals, marketing materials, and the latest version of the
Kiddie Academy Curriculum.
The Competition
Deleted: Our Education Department is
located at the Kiddie Academy Corporate Offices in Abingdon, Maryland. The
Education Department, working in conjunction with our Curriculum Advisory
Committee (which is comprised of individuals from inside and outside the Kiddie Academy System who have extensive experience in education and/or child care), maintains
and continually updates the Kiddie Academy Curriculum. The Education Department
establishes developmental milestones for each age group attending Kiddie Academy Franchises and develops curriculum related materials, including supportive
activities and child assessment practices for the Kiddie Academy Curriculum.
The Education Department also establishes guidelines for the entire Kiddie Academy System so that high quality, developmentally appropriate programs are
established and maintained at all Kiddie Academy Franchises. The most recent early
childhood education research and trends are used to maintain and update the Kiddie Academy Curriculum. 1| 1
The preschool and kindergarten portions of the Kiddie Academy Curriculum have been accredited by the Departments of Education of Maryland and Pennsylvania. Further, the Kiddie Academy Curriculum you will be using in your
academy is the same one used in our corporate academies. Accreditation is a
widely accepted goal among child care center operators and Kiddie Academy strongly encourages our franchisees to obtain, with the Education Department''s
assistance, accreditation from national, regional and state accreditation
agencies such as NAEVC, NACCP, CITA. NECPA and the various state Departments of
Education for their early childhood programs. The costs associated with such
accreditation are the responsibility of the Franchisee.^ 1
Kiddie Academy Features. All Kiddie Academy Franchises incorporate a
number of features that are designed to promote child safety and support The Kiddie Academy Curriculum. Kiddie Academy Franchises include a variety of systems and features
that permit greater visibility throughout the academy and provide for enhanced
security for the children. All academies contain interactive educational toys,
supplies and equipment, including educational carpets and wall decorations. Our
programs also emphasize continuous communication between teachers and parents
concerning each child''s development. Kiddie Academy believes that this
communication is critical to maintaining high levels of parental confidence and
satisfaction.! H
tire J) pcumme ni .2008.California......................................... _____ 4
Deleted: OffcringCircular.2007
The child care industry
consists of both profit oriented entities and non-profit entities. Your academy
will be a profit oriented entity and may compete against both types. Profit
oriented child care centers can be large or small and may be locally based or
part of national chains. Non-profit child care centers may be sponsored by
local community groups or be based in public schools. Further, many non-profit
child care centers are affiliated with places of worship and/or may offer a
specialized focus that make them attractive to certain segments of the
population. Your Kiddie Academy Franchise will offer programs through trained,
state-qualified personnel in a well-equipped, clean, safe, state-of-the-art
facility that is licensed by applicable state and local authorities. You will
also have Kiddie Academy and its more than 25 years of experience supporting
you every step of the way.
The Market
TTodav the child care
industry generates an estimated $60 billion in annual revenue and direptly
employs more people than the public secondary school system. Moreover. 65% of
mothers with children six years ,of age and under are in the labor force and more
than 70% of single mothers have jobs outside the home. Bv 2010 it is
anticipated that parents will make up more than 85% of the labor force and the
number of working women will exceed working men. (National Child Care
Associalion. National Economic Impacts of the Child Care Sector. 2002). According to an
April. 2005 study entitled, Early Childhood Education for All. A Wise Investment, approximately 900.000
people work in the United Slates as licensed child care providers and teachers.
A May, 2002 publication from
the Urban Institute entitled Primary Child Care Arrangements of Employed Parents reported that three-quarters
of children under the age of five whose parents were employed outside of the
home received daily care from people other than their parents. The most common
child care arrangement among this segment of the population was center-based
child care. According to ^ study published by the National Child Care
Association, entitled The National Economic Impacts of the Child Care Sector,
by 2010,
another 1.2 million children under the age of five will be added to the
population.
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Studies show that children who receive high quality,
center-based child care receive ! many long-term benefits. For
example, a 1996 report from the National Institute of Child Health and Human
Development states that children in center-based child care tended to score
higher in intellectual and verbal skills than children left at home with relatives,
nannies or sitters. By further example, a study of economically underprivileged
children completed in 1999 by the Abecedarian Project concluded that children
who received high quality child care consistently outperformed their peers who
did not receive high quality care. Finally, a long-term study conducted by the
High/Scope Educational Research Foundation, which was released in November,
2004, shows that among forty year olds, those who participated in preschool
programs as young children earn more money, are more likely to have a job, are
less likely to commit a crime and are more likely to have earned a high school
diploma. Each study proves that high quality early childhood education programs
have a positive influence on the children in our society.
There is a huge, national
market for center-based child care and preschool programs. However, jhe market
is a highly demanding one; Accordingly, entry into such a market requires
detailed knowledge and training, as well as specialized assistance.
Kiddie Academy and its affiliates
employ approximately 180 people at the Kiddie Academy Corporate Offices in Abingdon, Maryland and in the six company-owned academies (See Item 2 of this
Offering Circular).� Kiddie Academy and its affiliates have been in the
business of operating child care learning centers since
1981 and, as of December 31. �007. own _,.---{Deleted: 2006 ] and operate six academies in Maryland and Pennsylvania.�� Five of the six company-owned academies are located in Maryland, where child care regulations are among the strictest in the
nation. During the past�7
years. Kiddie Academy and its affiliates have developed superlative���� ���Deleted: 26 ]
training programs, administrative and operational
techniques and policies, a developmental I y
appropriate curriculum, business management systems,
advertising and promotional programs,
business forms, and design plans and specifications for
use in the establishment and operation of
academies. A Kiddie Academy Franchise will operate jin
a manner that is similar to that of the
corporate-owned academies. Kiddie Academy and its
affiliates have helped to design, develop
and open Kiddie Academy Franchises since 1992.
We do not engage in and do not
offer franchises in any other line of business, but we may establish such
businesses at a future date. .
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