What was the average gross revenue for Creative World School company-owned schools in 2022?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Median ($) | Average ($) | % of Avg. Gross Revenues | |---|---|---|---| | Gross Revenues | $1,538,574 | $1,688,737 | 100% | | | | | | | Royalties[1] | $102,863 | $115,776 | 7.0% | | Payroll - Salaries | $799,129 | $828,709 | 49.1% | | Payroll Taxes and Other[2] | $86,571 | $90,642 | 5.4% | | Benefits | $27,482 | $30,034 | 1.8% | | Food & Kitchen Supplies[3] | $101,686 | $105,832 | 6.3% | | Educational Expenses[4] | $46,625 | $37,514 | 2.2% | | Building Expenses[5] | $44,350 | $43,198 | 2.6% | | Automobile Expenses | $13,948 | $15,078 | 0.9% | | Advertising | $22,835 | $21,958 | 1.3% | | Insurance | $32,001 | $42,358 | 2.5% | | Telephone & Utilities | $46,812 | $49,589 | 2.9% | | General & Administrative[6] | $39,965 | $41,360 | 2.4% | | Total Expenses | $1,361,901 | $1,431,426 | 84.8% | | Net Income Before Interest, Taxes, | $176,673 | $257,310 | 15.2% | | Depreciation, Amortization, and Rent | | | | | (EBITDAR) | | | | | Grant Income | $335,064 | $393,591 | | | | | | | The high and low annual Gross Revenues for this category were $2,170,612 and $1,161,872 respectively. Two, or 40%, of 5 Company-Owned Schools attained or surpassed the average Gross Revenues in 2022.
The high and low EBITDAR for these Schools in 2022 was $469,509 and $-30,873, respectively. Two, or 40%, of 5 Company-Owned Schools, 12,000 SF or larger attained or surpassed the average EBITDAR (Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent) in calendar year 2022.
The Company-Owned Schools received significant grant income from their respective states and/or counties, including ARPA funds distributed based on capacity. Depending on the State and County guidelines, the funds were to be used for either eligible playground and classroom equipment, technology replacement or to supplement payroll, rent, and additional supplies. Missouri schools also received Grants based
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–75)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the Item 19 provides financial performance representations for the year 2022. This includes data from 5 company-owned schools that are 12,000 square feet or larger and operated for a full 12 months as of December 31, 2022. The FDD does not explicitly state the average gross revenues for these company-owned schools. However, it does state that the high and low annual Gross Revenues for this category were $2,170,612 and $1,161,872 respectively. It also notes that two, or 40%, of the 5 company-owned schools attained or surpassed the average Gross Revenues in 2022.
For a prospective franchisee, this information is useful for understanding the range of potential gross revenues for company-owned Creative World School locations. While the exact average is not provided, knowing the high and low figures gives an idea of the variability in performance. The fact that 40% of company-owned schools exceeded the average suggests that achieving or surpassing the average is possible, but not guaranteed.
It's important to note that these figures pertain to specific company-owned schools meeting certain criteria (size and operational duration). Additionally, the schools received significant grant income from their respective states and/or counties, including ARPA funds distributed based on capacity. These grants were used for purposes such as playground and classroom equipment, technology replacement, or to supplement payroll, rent, and additional supplies. The high and low annual Grant income for this category was $223,235 and $207,297, respectively. There were 4, or 80%, of the 5 Company-Owned Schools that attained or surpassed the average grant income in 2022.
Prospective franchisees should consider these factors and request further clarification from Creative World School regarding the specific average gross revenues for company-owned schools in 2022. Understanding the factors that contribute to revenue variations and the impact of grant income is crucial for making informed investment decisions.