Gymboree Play Programs, Inc Franchise Cost and Profit

Gymboree Play Programs, Inc requires a total initial investment of $120K to $277K (midpoint approximately $199K), with an initial franchise fee of $300. The ongoing fee burden is 11% (6% royalty plus 5% advertising fund). This is below the industry average of approximately 18.1%, leaving more margin for the operator.

Gymboree Play Programs, Inc does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.

Gymboree Play Programs, Inc operates approximately 178 franchised units. However, the brand has been contracting with a 7.2% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 12.5% is above the franchise industry average of approximately 3.8%, suggesting elevated financial risk for franchisees relying on debt financing.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.