How Much Does a Daycare Franchise Cost?
The first two questions we often hear from prospective franchisee candidates are, “How much can I make owning a preschool?” 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.
In addition to providing a much-needed service in your local community, our business model sets you up for long-term financial success. When it comes to new locations, we are extremely selective and carefully research area competition, population projections, transportation routes, and overall market growth. When you invest in our proven business model, all of the bells and whistles come together as a complete operations package. Industry experience isn’t required, only a desire to work with children and have fun every day! We guide and train new owners on all of the financial and management tools necessary for success.
How Much Can I Make?
Because we are so much more than a daycare, site selection is essential. For any new preschool franchise location, we are extremely selective and carefully research area competition (preschools and daycares), population projections, commuter routes, and projected growth. We want to ensure you have the best possible information as you select your school site. Our goal is to find a site that makes sense financially and personally as a franchise owner.
Certainly, there are many factors that will determine exactly how much money you will make in your business. School enrollment and budget management are obvious answers. However, our most successful owners are also engaged, great leaders, and believe in our educational philosophy.
The financial projections we provide are based on average profits and expenses of our larger, 13,000 sq/ft. franchised school locations achieved as represented in our most recent franchise disclosure document (FDD).
| CATEGORY | AVERAGE $ | % OF AVERAGE $ |
|---|---|---|
| Gross Revenue | $2,188,073 | 100% |
| Royalties | $147,110 | 6.7% |
| Payroll - Salaries | $894,373 | 40.9% |
| Payroll Taxes and Other | $102,878 | 4.7% |
| Benefits | $22,694 | 1.0% |
| Food & Kitchen Supplies | $81,627 | 3.7% |
| Educational Expenses | $67,283 | 3.1% |
| Building Expenses | $38,485 | 1.8% |
| Automobile Expenses | $8,295 | 0.4% |
| Advertising | $25,797 | 1.2% |
| Insurance | $39,263 | 1.8% |
| Telephone & Utilities | $38,777 | 1.8% |
| General & Administrative | $51,037 | 2.3% |
| Total Expenses | $1,514,128 | 69.2 % |
| Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR) | $673,946 | 30.80% |
How Much Can I Make?
Because we are so much more than a daycare, site selection is essential. For any new preschool franchise location, we are extremely selective and carefully research area competition (preschools and daycares), population projections, commuter routes, and projected growth. We want to ensure you have the best possible information as you select your school site. Our goal is to find a site that makes sense financially and personally as a franchise owner.
Certainly there are many factors that will determine exactly how much money you will make in your business. School enrollment and budget management are obvious answers. However, our most successful owners are also engaged, great leaders, and believe in our educational philosophy.
The financial projections we provide are based on average profits and expenses of our larger, 13,000 sq/ft. franchised school locations achieved as represented in our most recent franchise disclosure document (FDD).
| CATEGORY | AVERAGE $ | % OF AVERAGE $ |
|---|---|---|
| Gross Revenue | $2,188,073 | 100% |
| Royalties | $147,110 | 6.7% |
| Payroll - Salaries | $894,373 | 40.9% |
| Payroll Taxes and Other | $102,878 | 4.7% |
| Benefits | $22,694 | 1.0% |
| Food & Kitchen Supplies | $81,627 | 3.7% |
| Educational Expenses | $67,283 | 3.1% |
| Building Expenses | $38,485 | 1.8% |
| Automobile Expenses | $8,295 | 0.4% |
| Advertising | $25,797 | 1.2% |
| Insurance | $39,263 | 1.8% |
| Telephone & Utilities | $38,777 | 1.8% |
| General & Administrative | $51,037 | 2.3% |
| Total Expenses | $1,514,128 | 69.2 % |
| Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR) | $673,946 | 30.80% |
Invest in Your Future with a Child Care Franchise
Our preschool franchising model gives you 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 your school location is the perfect fit for area families! For a qualified daycare 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 $800,000 in your school. 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 Preschool
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.
Creative World School Development Budgets
Typical 2023
| School Size | Standard | Large | Large + Gym |
|---|---|---|---|
| Building square footage | 10,000 sq. ft. | 13,000 sq. ft. | 15,000 sq. ft. |
| Franchise fee | $80,000 | $80,000 | $80,000 |
| Land | $950,000 | $1,250,000 | $1,250,000 |
| Building construction @250/SF | $2,507,250 | $3,250,000 | $3,750,000 |
| Site work - parking, lights, etc | $600,000 | $750,000 | $750,000 |
| Opening Package - F, F, & E + toys & books | $245,000 | $325,000 | $335,000 |
| Playground equipment & turf | $245,000 | $245,000 | $245,000 |
| Wi-Fi, Telephone, camera & burglar | $30,000 | $40,000 | $45,000 |
| Architect & engineers, geotech, etc., | $180,000 | $180,000 | $180,000 |
| Impact,permit, utility fees | $50,000 | $60,000 | $65,000 |
| Operating capital | $75,000 | $100,000 | $100,000 |
| Pre-opening Expenses | $100,000 | $100,000 | $100,000 |
| Construction interest | $220,000 | $275,000 | $285,000 |
| SBA, Bank fees & closing costs | $186,000 | $232,000 | $266,000 |
| Total cost of project | $5,468,250 | $6,887,000 | $7,451,000 |
How Much Does it Cost?
Our preschool franchising model gives you 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 your school location is the perfect fit for area families! For a qualified daycare 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 $800,000 in your school. 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 Preschool
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.
Creative World School Development Budgets
Typical 2023
| School Size | Standard | Large | Large + Gym |
|---|---|---|---|
| Building square footage | 10,000 sq. ft. | 13,000 sq. ft. | 15,000 sq. ft. |
| Franchise fee | $80,000 | $80,000 | $80,000 |
| Land | $950,000 | $1,250,000 | $1,250,000 |
| Building construction @250/SF | $2,507,250 | $3,250,000 | $3,750,000 |
| Site work - parking, lights, etc | $600,000 | $750,000 | $750,000 |
| Opening Package - F, F, & E + toys & books | $245,000 | $325,000 | $335,000 |
| Playground equipment & turf | $245,000 | $245,000 | $245,000 |
| Wi-Fi, Telephone, camera & burglar | $30,000 | $40,000 | $45,000 |
| Architect & engineers, geotech, etc., | $180,000 | $180,000 | $180,000 |
| Impact,permit, utility fees | $50,000 | $60,000 | $65,000 |
| Operating capital | $75,000 | $100,000 | $100,000 |
| Pre-opening Expenses | $100,000 | $100,000 | $100,000 |
| Construction interest | $220,000 | $275,000 | $285,000 |
| SBA, Bank fees & closing costs | $186,000 | $232,000 | $266,000 |
| Total cost of project | $5,468,250 | $6,887,000 | $7,451,000 |