Numbers That Count

For a child education franchise school to work for you, certainly the financial numbers need to make sense for your financial picture and goals. The first two questions we always hear from a prospective franchise candidate are, “How Much Can I Make?” and “How Much Does it Cost?”

Both questions are very important and we don’t hide this information behind a salesperson or make you jump through hoops to get a better understanding of our business model. Keep reading for a high level overview of what you can expect and contact us with any questions!

 

How Much Can I Make?  

For any new school location, we are extremely selective and carefully research area competition, population projects, transportation routes, and overall market health. This is all to ensure you have the best possible path to success at your school, both financially and personally as franchise owner.

Certainly there are many factors that will determine exactly how much money you will make in your business. The ability to enroll your school to capacity, management of your expenses, and management of your payroll will all be a factor in overall profits. Luckily for you, we provide training and ongoing support to make this all line up for you!

The financial projections we provide are based on true average profits and expenses of our larger, 12,000 sq/ft. franchised school locations achieved in 2018. 

CATEGORY

AVERAGE $

% OF AVERAGE

Gross Revenue

$1,702,153

100.0%

 

 

 

Royalties

$118,426

7.0%

Payroll - Salaries

$702,856

41.3%

Payroll Taxes and Other

$76,496

4.5%

Medical Insurance

$3,693

.2%

Food & Kitchen Supplies

$67,761

4.0%

Educational Expenses

$34,705

2.0%

Building Expenses

$42,117

2.5%

Automobile Expenses

$9,753

.6%

Advertising

$7,652

.4%

Insurance

$25,747

1.5%

General & Administrative

$78,365

4.6%

Total Expenses

$1,167,570

68.6%

 

 

 

Net Income Before Interest, Taxes, Depreciation,
Amortization, and Rent (EBITDAR)

$534,584

31.4 %

How Much Does it Cost?

Our franchising model for you to own a beautiful early education school is focused on a complete ownership of your land, building, and everything inside. We do not offer or recommend leasing a building for your school, as this does not provide you with long-term financial growth. Your Creative World School will be an amazingly beautiful, brand new building, equipped with everything inside to welcome families and children!

You may be thinking, “This sounds like a big commitment to invest in.” It is, and that is why we want to make sure we are the right fit for you, you are the right fit for us, and you school location is the perfect fit for area families! For a qualified franchisee, the financial path to ownership may be easier than you think! 

Let’s start with the basics. We have two school models: a standard 10,000 sq/ft. building and a larger option 13,000 sq/ft. building. Depending on state licensing regulations, your school will have a capacity of 180-250 children. For our standard school model, you will be required to invest a minimum of $400,000 in your school. The minimum for our larger option is $500,000. This cash initial requirement cannot be financed, however it may come from a variety of sources which we can explain to you.


Financing Options for your School

An excellent way to finance your school is to take advantage of the long-term, fixed-interest rates of Small Business Association (SBA) 504 and 7A loan programs available through banks in your area. Creative World School franchisees are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program, www.franchiseregistry.com. 

Wondering if you qualify? Contact us to help you evaluate your financial status for school ownership.

EXPENDITURE

AMOUNT LOW

AMOUNT HIGH

Initial Franchise Fee

$60,000

$60,000

Building / Leasehold Improvements

$1,500,000

$3,000,000

Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing

$75,000

$200,000

Impact Fees and Utility Connection Fees

$100,000

$500,000

Land Costs

$400,000

$900,000

Architectural/Engineering, Legal & Accounting Services

$40,300

$80,000

Training Expenses (lodging, food, travel)

$3,000

$8,000

Opening Package

$200,000

$250,000

System Standards Fee

$750

$750

Signage

$12,000

$20,000

Opening Inventory and Supplies

$9,000

$14,000

Grand Opening Advertising

$7,000

$15,000

Utility Deposits

$3,000

$8,000

Insurance

$9,000

$14,000

Accreditation Fee

$1,250

$1,250

Additional Funds - 3 Months

$25,000

$125,000

TOTAL ESTIMATED INITIAL INVESTMENT $2,445,300 $5,206,000