Kung Fu Kids Opens Franchise Territories Nationwide on an “Executive Ownership” Model. What a Buyer Should Check First
Kung Fu Kids, a San Jose children’s martial arts and development brand founded in 2003, announced on November 4, 2026, that it has opened franchise territories nationwide. Two coaches who grew up in its program are opening Bay Area franchises this month. The brand sells an “executive ownership” model in which, its co-founder says, “you do not need a martial arts background to own a Kung Fu Kids.” That is a legitimate model, and a growing one. It is also the model that drew the Federal Trade Commission’s attention in the Premier Martial Arts case, which is why buyers should read the disclosure document, not the press release.
What was announced?
The release, distributed by EIN Presswire from San Jose, says Kung Fu Kids has opened territories nationwide. Its franchise program itself is not new: the company launched franchising in September 2025 with a California focus, according to an October 2025 release. The first franchise, in Mountain View, “has been operating successfully for the last 12 months,” the company says. The two new franchisees are:
- Kyle Chang, 21, opening in Newark, California, on November 3; and
- Archies Kulkarni, 20, opening in Cambrian Park, San Jose, on November 14.
Both trained and coached in the system. The company also operates five schools of its own, in the Coleman, Palo Alto, Berryessa, Pleasanton and Capitol Expressway areas.
Kung Fu Kids was co-founded by David Chang, its CEO, and Liz Chang, its COO. It says it began “in a garage with a single student” and has served more than 10,000 students since 2003, a cumulative figure the company supplies. Reporting in 2025 put current enrolment at more than 1,200. The brand was previously known as Wushu Central.
What is “executive ownership”?
In the company’s words, owners “lead the business” and focus on “community relationships, team leadership, marketing oversight and financial performance,” while “a Head Coach and a small team of two to four instructors” deliver classes. Schools run 2,000 to 3,000 square feet, and revenue comes mainly from recurring memberships. The company’s franchise development partner is BrandONE.
“Parents don’t come to us because they want a future martial arts champion,” David Chang said. The release does not use the phrase “semi-absentee,” and one franchise directory lists absentee ownership as not allowed and part-time ownership as allowed.
What does the announcement leave out?
The November release contains no franchise fee, investment range, royalty, territory terms, financial performance figures or reference to a Franchise Disclosure Document. Figures published elsewhere conflict:
- Franchise Times (October 2025) reported an initial investment of $213,550 to $396,800 and, citing the FDD, that the first three company locations generated $2.8 million in 2024.
- Entrepreneur’s franchise directory lists a $60,000 franchise fee, a $223,550 to $410,300 investment, an 8% royalty and a 2.5% advertising fund over a 10-year term, on a page whose update date we could not reconcile.
We could not confirm which figures are current. A buyer should rely only on the current FDD.
Why the Premier Martial Arts case matters here
Martial Arts Professional covered the FTC’s case against Premier Martial Arts in Buying a Martial Arts Franchise? What to Verify Before You Sign. The lesson for buyers of any owner-operator-optional model is the same: an executive owner depends entirely on the head coach, the instructor team and the franchisor’s enrolment system. If any of those fail, the owner who cannot teach has no fallback. Nothing in this announcement suggests Kung Fu Kids has made improper claims. The point is that the model puts more weight on the numbers in the disclosure document, so those are what to test.
Seven things to verify before buying a non-teaching martial arts franchise
- Get the current FDD and read Item 19. If the franchisor makes financial performance representations, they must be there, with their basis. Company-owned results are not franchisee results.
- Check state registration. California and roughly a dozen other states require franchise registration before sale. Confirm the brand is registered in your state with the regulator, such as California’s DFPI.
- Call the existing franchisees. Item 20 lists them. With one or two units open, ask how long they took to reach breakeven and who actually teaches.
- Price the head coach. Your model only works if you can hire, pay and keep one. Ask what the franchisor’s recruiting and training support costs and what happens if the coach leaves.
- Model the full investment. Build in rent, build-out, working capital and the months before the school is full.
- Read the exit terms. Non-competes, transfer fees and de-identification obligations bind you if it doesn’t work. See our report on the Tampa franchise injunction.
- Have a franchise attorney review it. This article is not legal or financial advice.
Frequently asked questions
Is Kung Fu Kids a new franchise?
No. It began franchising in September 2025 in California. The November 2026 announcement opened territories nationwide.
Do Kung Fu Kids owners have to teach?
No, according to the company. Owners run the business while a head coach and two to four instructors teach classes.
How much does a Kung Fu Kids franchise cost?
The announcement does not say. Published figures conflict, with investment ranges around $213,000 to $410,000. Use the current Franchise Disclosure Document.
How many locations does Kung Fu Kids have?
Five company-owned schools in the Bay Area, a franchise in Mountain View, and franchises opening in Newark and Cambrian Park in November 2026.
Sources, and what we could not confirm
Kung Fu Kids release via EIN Presswire, San Jose, November 4, 2026; GlobeNewswire release, October 8, 2025; Franchise Times, October 28, 2025; Entrepreneur franchise directory listing. The “10,000 students” figure is the company’s own. We could not confirm the company’s current FDD, its issue date, its state registrations, or which published investment figures are current. Kung Fu Kids has not been contacted; any response will be added here.
