In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for The Goddard School franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Goddard School franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned The Goddard School outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on The Goddard School franchise opportunity

Section V – Presentation and analysis of The Goddard School’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2019, 2020, 2021, 2022, and 2023 average gross sales, payroll, occupancy costs, miscellaneous expenses, total expenses, EBITDA, and EBITDAR for the Goddard Schools that had been open and operating for over 18 months as of December 31, 2019, December 31, 2020, December 31, 2021, December 31, 2022, and December 31, 2023, respectively

Section VI – Key ratios, comparables, computations, and analyses for The Goddard School franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Goddard School Franchise Costs

• Initial License Fee:  $135,000
• Initial Training and Opening Support Fee; Satellite Location Assistance Fee:  $35,000 to $42,000
• Initial Marketing Fee:  $55,000 to $75,000
• Site Development Fee:  $35,000
• Background Check (up to four individuals):  $1,500 to $6,000
• Convention Deposit:  $2,000
• Lease Deposit:  $20,000 to $50,000
• Furniture, Fixtures, and Equipment:  $214,000 to $259,000
• Playground Equipment:  $140,000 to $240,000
• Marketing Materials, Stationery, Forms, and Curricular Resources:  $6,000 to $7,000
• Signs:  $20,000
• Computer System, IT Security, Network Equipment/Wireless Access Point Devices, Installation, Telephone System, Interactive Flat Panel, and Digital Signage Package:  $26,000 to $40,000
• Security System:  $15,000
• Miscellaneous Opening Costs:  $98,000 to $108,000
• Additional Funds – 3 Months:  $100,000 to $275,000
• Total Estimated The Goddard School Franchise Costs:  $902,500 to $1,309,000

Section II – The Goddard School’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial License Fee:  $135,000
• Royalty Fee:  7% Gross Receipts
• Marketing Fund/Marketing Fee:  4% of Gross Receipts, including the Gross Receipts derived from any Satellite Location or Annex, per month
• Local Advertising, Marketing, and Promotion:  your cost

Section III – Number of Franchised and Company-Owned The Goddard School Outlets

Franchised

2021

• Outlets at the Start of the Year:  553
• Outlets at the End of the Year:  575
• Net Change:  +22

2022

• Outlets at the Start of the Year:  575
• Outlets at the End of the Year:  598
• Net Change:  +23

2023

• Outlets at the Start of the Year:  598
• Outlets at the End of the Year:  627
• Net Change:  +29

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on The Goddard School Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Goddard School Franchise (Item 19, 2024 FDD)

• The following is a report of mature The Goddard Schools open over 18 months as of December 31, 2023 (the “Mature Schools”), identifying the actual Gross Revenue, payroll, occupancy (representing rent plus property tax expense), and miscellaneous operating expenses prepared on a cash basis for the year ended December 31, 2023 for all Mature Schools operating as of December 31, 2023.

• The net result of these items is “EBITDA” which is defined as Gross Revenue less all expenses directly related to operating the School excluding interest, taxes, depreciation, and amortization. EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization.

• The report also includes an average “EBITDAR,” which is defined as EBITDA excluding rent related expenses (occupancy expenses).

• The items included in the expense category identified as miscellaneous items include bank charges, office supplies, utilities, telephone, transportation, payroll taxes, employee costs, marketing, royalties, repairs and maintenance, school supplies, snacks, technology, marketing, and professional fees. The expenses reported may also include miscellaneous items that are subject to the discretionary spending of the individual franchisee.

• “Gross Revenue” is determined on an accrual basis and represents the amount billed by a School for all services or products of any nature rendered or sold at or from or as a result of the School, and without deduction of any kind. (School services are not currently subject to sales taxes or similar taxes.)

• The report includes averages for the data reported for all Mature Schools (open more than 18 months as of December 31, 2023) for the year ended December 31, 2023. The report has not been audited.

• As of December 31, 2023, there were 627 Schools in operation, all of which 627 Schools were owned by franchisees. Of these 627 Schools, 589 Schools are Mature Schools and 38 are New Schools.

• One Mature School closed during 2023. As a result, information regarding this Mature School is not included in the report.

• The figures in the report have been compiled from operating reports supplied under the Franchise Agreement by franchisees. All of the Schools report financial information to the franchisor or Goddard Manager based upon a uniform reporting system. Neither the franchisor nor Goddard Manager has audited these figures.

• The franchisor offers substantially the same services to all of the Schools described in the report. The Schools offer substantially the same services to the public.

Average Gross Revenue, Payroll, Occupancy, Miscellaneous Operating Expenses, Total Expenses, and EBITDA for Mature Goddard School Businesses

2023 Average – 589 Mature Franchise Schools

• Gross Revenue:  $2,282,039 (100.0%)
• Payroll:  $887,051 (38.9%)
• Occupancy:  $298,423 (13.1%)
• Miscellaneous Items:  $598,550 (26.2%)
• Total Expenses:  $1,784,024 (78.2%)
• EBITDA:  $498,015 (21.8%)
• EBITDAR:  $796,438 (34.9%)

• 2023 Median Gross Revenue:  $2,131,739
• 2023 Highest Gross Revenue:  $6,408,844
• 2023 Lowest Gross Revenue:  $369,395

2022 Average – 563 Mature Franchise Schools

• Gross Revenue:  $2,095,670 (100.0%)
• Payroll:  $791,608 (37.8%)
• Occupancy:  $284,025 (13.6%)
• Miscellaneous Items:  $554,982 (26.5%)
• Total Expenses:  $1,630,615 (77.8%)
• EBITDA:  $465,055 (22.2%)
• EBITDAR:  $749,081 (35.7%)

• 2022 Median Gross Revenue:  $1,955,971
• 2022 Highest Gross Revenue:  $6,440,975
• 2022 Lowest Gross Revenue:  $452,285

2021 Average – 532 Mature Franchise Schools

• Gross Revenue:  $1,798,771 (100.0%)
• Payroll:  $680,493 (37.8%)
• Occupancy:  $267,854 (14.9%)
• Miscellaneous Items:  $476,582 (26.5%)
• Total Expenses:  $1,424,929 (79.2%)
• EBITDA:  $373,842 (20.8%)
• EBITDAR:  $641,696 (35.7%)

• 2021 Median Gross Revenue:  $1,669,054
• 2021 Highest Gross Revenue:  $6,257,269
• 2021 Lowest Gross Revenue:  $213,171

2020 Average – 504 Mature Franchise Schools

• Gross Revenue:  $1,336,520 (100.0%)
• Payroll:  $579,551 (43.4%)
• Occupancy:  $236,803 (17.7%)
• Miscellaneous Items:  $389,825 (29.2%)
• Total Expenses:  $1,206,179 (90.2%)
• EBITDA:  $130,341 (9.8%)
• EBITDAR:  $367,144 (27.5%)

• 2020 Median Gross Revenue:  $1,291,314
• 2020 Highest Gross Revenue:  $5,052,878
• 2020 Lowest Gross Revenue:  $207,178

2019 Average – 478 Mature Franchise Schools

• Gross Revenue:  $1,812,739 (100.0%)
• Payroll:  $671,104 (37.0%)
• Occupancy:  $255,686 (14.1%)
• Miscellaneous Items:  $472,324 (26.1%)
• Total Expenses:  $1,399,114 (77.2%)
• EBITDA:  $413,625 (22.8%)
• EBITDAR:  $669,311 (36.9%)

• 2019 Median Gross Revenue:  $1,700,221
• 2019 Highest Gross Revenue:  $6,028,893
• 2019 Lowest Gross Revenue:  $226,260

• Some Schools have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – The Goddard School Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️