How Much Does a Preschool Franchise Cost | Creative World School

Dollars and Sense

Numbers That Count

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. Keep reading for a high-level overview of what you can expect and contact us with any questions!


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).

CATEGORYAVERAGE $% OF AVERAGE
Gross Revenue$1,879,175100%
Royalties[1]$124,9116.6 %
Payroll - Salaries$771,20041%
Payroll Taxes and Other$83,5844.4 %
Food & Kitchen Supplies$72,6233.9 %
Educational Expenses$ 47,7442.5 %
Building Expenses$28,7981.5 %
Automobile Expenses$11,825.6%
Advertising$10,584.6%
Insurance$29,035

1.5 %
General & Administrative$49,2332.6 %
Total Expenses$1,273,67267.8 %

Net Income Before Interest, Taxes, Depreciation,
Amortization, and Rent (EBITDAR)
$605,50132.2 %

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).

CATEGORYAVERAGE $% OF AVERAGE
Gross Revenue$1,879,175100%
Royalties[1]$124,9116.6 %
Payroll - Salaries$771,20041%
Payroll Taxes and Other$83,5844.4 %
Food & Kitchen Supplies$72,6233.9 %
Educational Expenses$ 47,7442.5 %
Building Expenses$28,7981.5 %
Automobile Expenses$11,825.6%
Advertising$10,584.6%
Insurance$29,035

1.5 %
General & Administrative$49,2332.6 %
Total Expenses$1,273,67267.8 %

Net Income Before Interest, Taxes, Depreciation,
Amortization, and Rent (EBITDAR)
$605,50132.2 %

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 $450,000 in your school. The minimum for our larger option is $550,000. 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 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.

EXPENDITURE10,000 SQ. FT. SCHOOL13,000 SQ. FT. SCHOOL
Initial Franchise Fee$60,000$60,000
Building / Leasehold Improvements$2,600,000$3,200,000
Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing$150,000$260,000
Impact Fees and Utility Connection Fees$230,000$280,000
Land Costs$650,000
$900,000
Architectural/Engineering, Legal & Accounting Services$125,000$150,000
Opening FF&E$200,000$250,000
Opening Inventory and Supplies$20,000$25,000
Pre-Opening Expenses$25,000$40,000
Operating Capital - 3 Months$75,000$100,000
SBA & Bank Fees, Closing Costs$90,000$120,000
TOTAL ESTIMATED INITIAL INVESTMENT$4,225,000$5,385,000

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 $450,000 in your school. The minimum for our larger option is $550,000. 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 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.

EXPENDITURE10,000 SQ. FT. SCHOOL13,000 SQ. FT. SCHOOL
Initial Franchise Fee$60,000$60,000
Building / Leasehold Improvements$2,600,000$3,200,000
Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing$150,000$260,000
Impact Fees and Utility Connection Fees$230,000$280,000
Land Costs$650,000
$900,000
Architectural/Engineering, Legal & Accounting Services$125,000$150,000
Opening FF&E$200,000$250,000
Opening Inventory and Supplies$20,000$25,000
Pre-Opening Expenses$25,000$40,000
Operating Capital - 3 Months$75,000$100,000
SBA & Bank Fees, Closing Costs$90,000$120,000
TOTAL ESTIMATED INITIAL INVESTMENT$4,225,000$5,385,000
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