Little Diggers Franchise
Cost, fees, owner earnings, closure rate and litigation for a Little Diggers franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Little Diggers discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Two company-owned facilities (12+ months): Gross sales $469K-$483K; EBITDA $97K-$120K after imputed royalty/ad fees. Cherry-picking risk: only 2 outlets, all company-owned, no franchisee data.
What a Little Diggers franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $50,000 | Item 5 — paid up front, before you open |
| Royalty | 8% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $349,760 – $495,425 | Item 7 — franchisor's own low/high estimate |
8% royalty minimum $500/week; 2% ad fund minimum $125/week; numerous compliance fees ($400-$50K); Illinois/Minnesota fee deferral required.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Little Diggers system size and owner turnover
| Total outlets | 3 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
Zero franchised outlets; brand acquired recently; only 3 company-owned; early stage system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Little Diggers worth it? — how it compares to 60 similar franchises
| Ongoing fees | 10% of sales | steeper than 64% of children's education & childcare franchises |
| Startup cost | from $349,760 | about average (median $191,992) |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 1.4%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every children's education & childcare franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Little Diggers
The franchisor's framing: Two company-owned facilities (12+ months): Gross sales $469K-$483K; EBITDA $97K-$120K afte… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Little Diggers franchise — frequently asked
- How much does a Little Diggers franchise cost?
- The FDD lists a total initial investment of about $349,760–$495,425, including a $50,000 initial franchise fee.
- How much do Little Diggers franchise owners make?
- Two company-owned facilities (12+ months): Gross sales $469K-$483K; EBITDA $97K-$120K after imputed royalty/ad fees. Cherry-picking risk: only 2 outlets, all company-owned, no franchisee data. We grade this disclosure D for honesty.
- What are the Little Diggers franchise fees?
- Little Diggers' FDD discloses a $50,000 initial franchise fee, a 8% royalty on gross sales, a 2% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. 8% royalty minimum $500/week; 2% ad fund minimum $125/week; numerous compliance fees ($400-$50K); Illinois/Minnesota fee deferral required.
- What is the Little Diggers franchise profit margin?
- Little Diggers does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Two company-owned facilities (12+ months): Gross sales $469K-$483K; EBITDA $97K-$120K after imputed royalty/ad fees. Cherry-picking risk: only 2 outlets, all company-owned, no franchisee data. Recurring fees alone take about 10% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Little Diggers franchise failure rate?
- Zero franchised outlets; brand acquired recently; only 3 company-owned; early stage system.
- How many Little Diggers locations are there?
- Little Diggers' FDD reports 3 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Little Diggers have complaints or lawsuits?
- Little Diggers discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Little Diggers franchise worth it?
- It depends on the numbers, not the pitch. Little Diggers scores D on disclosure honesty, carries about 10% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Little Diggers to similar franchises
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Source: MN CARDS 36591-202605-03 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Little Diggers or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.