How to Finance a Doodle Bugs! Franchise: Child Care Center Costs
By Anthony Cornella
A Doodle Bugs! franchise loan usually funds a full-size early learning center: a building of several thousand square feet, a large playground, classroom furnishings and the working capital needed while enrollment grows. Doodle Bugs! Children’s Learning Academy serves children from infancy to age 12, and its real estate choices, whether to lease or own the facility, drive most of the financing decisions.
US Professional Funding is not affiliated with, sponsored by or endorsed by Doodle Bugs! Children’s Learning Academy; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice; review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Doodle Bugs! Franchise Loan at a Glance
- Initial fees: a $25,000 Preliminary Agreement (site selection assistance) fee, a $5,500 background check fee and a $65,000 franchise fee payable once an approved location is identified, according to the franchisor’s franchising website.
- Royalty: 6% of gross revenue, or 7% in a market with a regional manager.
- Local marketing: 1% of gross revenue.
- Estimated initial investment, leased facility: $428,875 to $1,035,500.
- Estimated initial investment, franchisee-owned facility: $1,928,875 to $4,978,000.
- Net worth: the company’s franchising page lists a minimum net worth of $1,500,000; confirm current liquidity requirements with the franchisor.
- System size: the company reported 17 locations as of 2024.
- SBA Franchise Directory: listed under code S0515, with two directory notes explained below.
What Is Doodle Bugs!?
Doodle Bugs! was founded in 1992 by siblings Anthony, Anna and Clarine Insinna, who opened the first center in East Amherst, New York. The company opened its first franchise location in 2012 and says it is seeking owner-operators for new franchise opportunities. Its 2024 franchising page reported 17 locations, more than 600 teachers and more than 3,500 children enrolled.
The concept is an education-based child care center built around a proprietary curriculum called Bravo!, which is designed to support learning through play. Centers serve infants, toddlers, preschoolers and school-age children up to age 12.
A large-format center. The franchisor’s site criteria call for a single- or two-story building of 8,000 to 14,000 square feet on 1 to 2 acres, with 25 to 45 parking spaces and a level playground of 15,000+ square feet adjacent to the building. That scale is why lenders treat a Doodle Bugs! project much like a commercial real estate and construction deal, not just a business loan.
Doodle Bugs! Franchise Costs
Initial fees. According to the franchisor’s franchising website, a new owner pays a $25,000 Preliminary Agreement Fee for site selection assistance and a $5,500 background check fee. The $65,000 franchise fee is payable only once an approved location is identified. Together, the initial fees total $95,500.
Real estate: lease or own. The franchisor publishes two investment ranges. A leased facility runs $428,875 to $1,035,500, while a franchisee-owned facility runs $1,928,875 to $4,978,000. The difference reflects land acquisition and construction of a purpose-built center. Facility size and local land costs move the numbers within each range.
Equipment and furnishings. Classroom furniture, cribs, learning materials, playground equipment, kitchen equipment, security systems and technology are part of the investment, though the site does not publish separate figures for them.
Working capital. The ranges include initial working capital. Child care centers often operate below capacity while enrollment builds, so this cushion matters.
Total investment. The franchisor says its ranges include the following:
- Initial fees: $95,500 ($25,000 Preliminary Agreement Fee, $5,500 background check fee and $65,000 franchise fee)
- Landlord lease deposits (leased facility) or real estate development costs (owned facility)
- Equipment purchases
- Initial working capital
- Total: $428,875 to $1,035,500 leased, or $1,928,875 to $4,978,000 owned
Read the Item 7 table in the current FDD for the exact line items and the period the working capital is meant to cover.
Ongoing Fees and How They Affect Your Loan
Royalty. The royalty is 6% of gross revenue, rising to 7% in a market served by a regional manager. Because it is a percentage of revenue, it scales with enrollment.
Local marketing. Owners must spend 1% of gross revenue on local marketing to support enrollment.
Occupancy and staffing. Rent or mortgage payments and teacher payroll are the largest costs in a child care center. State staffing ratios set a floor on labor regardless of how full each classroom is.
How lenders factor these costs in. Lenders deduct the royalty, marketing spend, payroll and occupancy cost from projected tuition revenue and then test whether the center can cover debt service during the enrollment ramp-up, not just at full capacity.
Franchisor Requirements for New Owners
Doodle Bugs! looks for owner-operators. The company’s franchising page lists a minimum net worth of $1,500,000. Its franchise development site and franchising page give different figures for minimum liquid capital, so confirm the current requirement directly with the franchisor and in the FDD.
Training and timeline. The franchisee and the center director train for at least three weeks at company-operated centers. The franchisor says opening a center takes 12 to 30 months, reflecting site selection, permitting, construction and licensing. Plan financing for that full period.
Site selection. The franchisor’s real estate team helps analyze market demographics and evaluate sites, and each franchisee receives a protected territory based on population, traffic patterns and income levels.
Ways to Own a Doodle Bugs!
A new center in a leased building. Leasing lowers the up-front investment. The loan generally covers the fees, leasehold improvements, furnishings and working capital. See our educational center start-up financing page.
A new center the franchisee owns. Buying land and building a center requires far more capital but gives the owner a real estate asset. Our educational center real estate financing page explains how these projects are funded.
Buying an existing center. If a franchised center is offered for sale, a buyer can step into an enrolled operation with staff and a license history, subject to franchisor approval and state licensing. See our educational center acquisition loans and our article on licensing, ratios and inspections when buying a childcare center.
Financing Options for a Doodle Bugs! Franchise
SBA 7(a) loans. The franchisor says it does not offer financing and points owners toward SBA lending. An SBA 7(a) loan can fund leasehold improvements, equipment, fees and working capital, and can also include real estate.
SBA 504 loans. For an owner-occupied, purpose-built center, the SBA 504 program is designed for land, construction and long-lived equipment, and is often paired with a 7(a) loan for working capital.
Conventional loans. Experienced operators with strong collateral may consider a conventional business loan for construction, real estate or a second center.
Equipment financing. Classroom furniture, playground structures, commercial kitchen equipment, security and check-in systems and vans can be financed separately to preserve cash.
Working capital and lines of credit. A center may run at a loss in its early months while classrooms fill. A working capital line can cover payroll during that period. See our educational center working capital options.
Seller financing on resales. On the purchase of an existing center, a seller may carry part of the price. A seller note must be acceptable to the senior lender, is typically subordinate to it and may be limited by program rules.
SBA Loans for Doodle Bugs! Franchisees
SBA lenders rely on the SBA Franchise Directory to confirm that a brand’s franchise documents have been reviewed for SBA eligibility. A listing does not approve any borrower.
The directory listing and its notes. Doodle Bugs! Children’s Learning Academy appears on the directory under code S0515 with two notes. In plain English:
- Note 1: When the real estate where the center is located will secure the SBA-guaranteed loan, the brand’s Lease Conditional Assignment Agreement may not be executed. That document is designed for leased sites; if the borrower owns the property and pledges it as collateral, the lease assignment does not apply and should not be signed as part of the loan.
- Note 2: The lender (or, for a 504 loan, the Certified Development Company) must obtain the correct lien position on all collateral as required by SBA rules. In practice, the lender confirms where its liens on the real estate, equipment and other assets rank before closing.
These notes are handled by the lender and attorneys, but they can affect closing documents and timing, so raise them early. Our article on SBA loans for educational businesses covers more of the process.
SBA application tips. The SBA 7(a) program maximum is currently $5 million (program rules can change), so an owned-facility project at the top of the range may need a 504 loan or a combined structure. Prepare a personal financial statement, tax returns, a resume showing management or education experience, the franchise agreement, construction budgets and enrollment-based projections. Our SBA loan calculator can help with early planning; estimates are not an offer or approval.
How Lenders Evaluate a Doodle Bugs! Deal
Personal credit and financial history. Expect a full review of credit, tax returns and a personal financial statement, with personal guarantees.
Net worth and liquidity. With a minimum net worth of $1,500,000 set by the franchisor and a long pre-opening period, lenders look closely at post-closing reserves.
Industry and management experience. Business management experience and a qualified center director strengthen the request, as does completion of the franchisor’s training.
Business plan and projections. Projections should start from local demographics, tuition rates, licensed capacity by age group and a realistic enrollment ramp. Infant rooms require more staff per child, so the age mix affects margins.
The FDD and franchise agreement. Lenders review the franchise term, renewal and transfer terms, the territory and Item 19 to see what financial performance information the FDD includes.
Site, construction and licensing. Lenders review the lease or purchase contract, construction budget, contractor and the path to a state child care license.
Historical financials for resales. For an existing center, provide enrollment reports, tuition rolls, profit and loss statements and tax returns, plus licensing inspection history.
Building and Equipping a Child Care Center
A center of 8,000 to 14,000 square feet needs classrooms sized for each age group, restrooms and diapering areas, a kitchen, offices, secure entry systems and a large outdoor play area. Construction must meet building and fire codes as well as state child care licensing standards, which can add review steps and time. Coordinate construction draws with the lender.
Multi-Unit Growth and Development
Once a first center reaches stable enrollment, its results can support a second. Lenders typically underwrite the existing center’s cash flow alongside the new project. Our article on multi-unit franchise financing explains how growth is usually structured.
Real-World Scenarios
A first-time owner leasing a building. A former corporate manager leases a new building, uses an SBA 7(a) loan for fees, improvements, furnishings and working capital, and hires an experienced director.
An investor-operator building and owning. A buyer with strong net worth acquires land and builds a center with an SBA 504 loan, adds a 7(a) loan for working capital and equipment, and ensures the lender handles the directory notes on lease assignment and lien position.
A buyer of an operating center. A buyer acquires an existing franchised center, and the lender underwrites tuition history and licensing records, with a subordinate seller note covering part of the price.
Common Mistakes to Avoid
- Underestimating the 12 to 30 month path to opening and the cash needed before the first tuition payment
- Projecting full enrollment too soon
- Ignoring staffing ratios, especially for infant rooms
- Skipping a construction contingency
- Overlooking the SBA directory notes on lease assignment and lien position
- Assuming the lowest end of the investment range applies to every market
For more pitfalls, read the educational business loan mistakes that cost owners the most.
Next Steps to Finance Your Doodle Bugs! Franchise
Step 1: Confirm the requirements. Verify the current net worth and liquid capital requirements with the franchisor.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 3: Decide whether to lease or own. Compare the two investment ranges and how each affects collateral and loan structure.
Step 4: Talk with a financing specialist. Discuss Doodle Bugs! franchise loan options, including 7(a), 504 and combined structures, before committing to a site.
Step 5: Build your loan package. Prepare financial statements, tax returns, a resume, demographics, construction budgets and projections.
Step 6: Close and open. Coordinate construction draws, licensing and training so the center opens on schedule.
Doodle Bugs! Franchise Loan FAQs
How much does a Doodle Bugs! franchise cost?
The franchisor lists $428,875 to $1,035,500 for a leased facility and $1,928,875 to $4,978,000 for a franchisee-owned facility.
What is the Doodle Bugs! franchise fee?
The franchise fee is $65,000, payable once an approved location is identified, plus a $25,000 Preliminary Agreement Fee and a $5,500 background check fee.
What royalty does Doodle Bugs! charge?
The royalty is 6% of gross revenue, or 7% in a market with a regional manager, and owners spend 1% of gross revenue on local marketing.
How much net worth do I need?
The company’s franchising page lists a minimum net worth of $1,500,000. Confirm the current liquid capital requirement with the franchisor.
Is a Doodle Bugs! franchise loan eligible for SBA financing?
Yes. The brand is on the SBA Franchise Directory under code S0515, with notes on lease assignment and lien position that the lender must follow.
Does Doodle Bugs! offer financing?
No. The franchisor says it does not offer financing and works with owners on third-party and SBA lending. Check Item 10 of the current FDD.
Can I own the building?
Yes. The franchisor publishes a separate investment range for franchisee-owned facilities, which can be financed with SBA 504, 7(a) or conventional real estate loans.
How long does it take to open?
The franchisor says 12 to 30 months, depending on site selection, construction and licensing.
Do I need child care experience?
The franchisor looks for owner-operators and provides at least three weeks of training for the owner and center director. Lenders also value management experience.
Does the FDD include financial performance information?
The franchisor says historical financial information is in the FDD. Review Item 19 of the current document.
Final Thoughts
A Doodle Bugs! franchise loan is shaped by real estate: leasing keeps the investment well below the owned-facility range, while owning the building adds a real estate asset and a much larger loan. Buyers who plan for the long path to opening, model enrollment carefully and address the SBA directory notes early give themselves the best chance at a smooth closing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, real estate and working capital. Learn more about our franchise financing and educational services financing solutions.
