How is the Occupancy Rate determined for a Casa De Corazon center?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
Occupancy Rate was determined as of December 31, 2024 by dividing the student enrollment number applicable to the Center by the Center's enrollment capacity, which is set by the Center's childcare license.
The Occupancy Rate for Affiliate Centers 2 and 3 was affected due to the completion of construction adding additional classrooms during 2024 leading to an increase in capacity before the end of 2024.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 43–48)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the Occupancy Rate is determined as of December 31, 2024. It is calculated by dividing the student enrollment number applicable to the Casa De Corazon center by the center's enrollment capacity. The enrollment capacity is specifically set by the center's childcare license.
It's important to note that the Occupancy Rate for Affiliate Centers 2 and 3 was affected due to construction that added additional classrooms during 2024. This construction led to an increase in capacity before the end of 2024, which could temporarily lower the occupancy rate as the center fills the new spaces.
For a prospective franchisee, understanding how occupancy rate is calculated is crucial because it directly impacts revenue potential. A higher occupancy rate generally translates to higher tuition revenue. However, franchisees should also consider factors like the timing of capacity expansions and local market conditions, which can influence occupancy rates. Reviewing the historical occupancy rates of existing Casa De Corazon centers, as presented in the FDD, can provide valuable insights, but it's essential to understand the context behind those numbers.