Childrens Lighthouse vs Kids R Kids
Childrens Lighthouse vs Kids R Kids: Childrens Lighthouse costs $940K–$1.2M to open; Kids R Kids costs $595K–$5.0M. Childrens Lighthouse has 73 units, Kids R Kids has 199. SBA loan history: Childrens Lighthouse = 111 loans (0.0% default); Kids R Kids = 326 loans (4.0% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet — see the comparison below.
Childrens Lighthouse vs Kids R Kids — Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Kids R Kids requires the lower minimum capital commitment ($595K vs $940K for Childrens Lighthouse), a 58% spread. Ongoing royalty load is 7% for Childrens Lighthouse and 6% for Kids R Kids, giving Kids R Kids the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Kids R Kids operates 199 units to Childrens Lighthouse's 73 — roughly 3× the system size. Kids R Kids has been operating 41 years (founded 1985) versus 29 for Childrens Lighthouse (founded 1997) — a 12-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Kids R Kids has the deeper SBA lending track record with 326 historical 7(a) approvals versus 111 for Childrens Lighthouse. Childrens Lighthouse's peak SBA year was 2020 (9 loans); Kids R Kids's peak was 2019 (19 loans). Childrens Lighthouse's more recent peak generally indicates fresher lender appetite. Both systems concentrate the most SBA-funded units in TX — borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded Childrens Lighthouse deals is $1.9M vs $2.6M for Kids R Kids — useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 0.0% for Childrens Lighthouse and 4.0% for Kids R Kids — Childrens Lighthouse has the cleaner historical loss profile by 4.0 points. PeerSense FPI scores come in at 61 (Moderate) for Childrens Lighthouse and 51 (Moderate) for Kids R Kids, giving Childrens Lighthouse the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 61/100 | 51/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 111 | 326 |
SBA Volume | — | — |
Default Rate | 0.0% | 4.0% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $940K – $1.2M | $595K – $5.0M |
Franchise Fee | $85K | N/A |
Royalty Rate | 7% | 6% |
Ad Fund | 0.5% | N/A |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 73 | 199 |
Franchised Units | 73 | 199 |
Company-Owned | — | — |
Term Length | 20 yrs | 25 yrs |
Brand Information
Year Founded | 1997 | 1985 |
Franchising Since | 1960 | 1960 |
Years Franchising | 66 yrs | 66 yrs |
Headquarters | Fort Worth, TX | Cypress, TX |
Category | Child Day Care Services | Child Day Care Services |
Website | ||
FDD Year | 2023 | N/A |
Which Is Better — Childrens Lighthouse or Kids R Kids?
Lower upfront capital required
Kids R Kids
Childrens Lighthouse: $940K starting · Kids R Kids: $595K starting
More SBA lender confidence
Kids R Kids
Childrens Lighthouse: 111 SBA loans · Kids R Kids: 326 SBA loans
Lower historical default rate
Childrens Lighthouse
Childrens Lighthouse: 0.0% · Kids R Kids: 4.0%
Larger system & brand presence
Kids R Kids
Childrens Lighthouse: 73 units · Kids R Kids: 199 units
Lower ongoing royalty load
Kids R Kids
Childrens Lighthouse: 7% · Kids R Kids: 6%
More lender financing options
Kids R Kids
Childrens Lighthouse: 46 unique lenders · Kids R Kids: 77 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation — your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Childrens Lighthouse vs Kids R Kids: Franchise Funding Comparison
Comparing Childrens Lighthouse and Kids R Kids is about more than brand preference — it's about which franchise fits your financial profile and funding strategy. Investment ranges from $595K to $5.0M.
Both brands have active SBA lending histories — Childrens Lighthouse with 111 SBA loans and Kids R Kids with 326. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands — not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice — consult with a lending professional before making investment decisions.