What was the average royalty paid by Creative World School franchised locations in 2024?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
The figures presented below represent the 2024 average and median actual income and expenses of 18 Schools with 12,000 square feet or larger that operated for a full 12 months as of December 31, 2024. This includes 5 Company-Owned Schools (owned and operated by our affiliates) and 13 Franchised Schools*.* There are no material financial and operational characteristics of the Company-Owned Schools that are reasonably anticipated to differ materially from future operational franchise Schools. Some Schools provided information that did not conform to generally accepted accounting principles, so the information was not included in the income and expense figures presented below. We have only included those Schools that meet this criteria and provided expense information to us. The expense figures presented include royalties, payroll salaries, payroll taxes and other, benefits, food and kitchen supplies, educational expenses, building expenses, automobile expenses, advertising, insurance, utilities, and general and administrative expenses. There are other expenses you will incur in operating a Creative World School® Business, but we do not present them in this Financial Performance Representation. A combination of factors, including, but not limited to, tuition charged, whether an owner chooses benefits for employees, extras provided by owners specific to their school, etc., may affect these amounts and percentages.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–75)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, Item 19 provides financial performance representations for the year 2024. It includes average income and expenses for certain company-owned and franchised schools. The document mentions that the expense figures presented include royalties, among other expenses such as payroll, salaries, taxes, food, educational expenses, and building expenses.
However, the specific average royalty amount paid by Creative World School franchisees in 2024 is not explicitly stated in Item 19. While royalties are listed as part of the expenses included in the financial performance representation, the FDD does not break out the royalty expenses as a separate line item.
Therefore, a prospective franchisee would need to request further clarification from Creative World School regarding the average royalty expenses for franchised locations. This information would be essential to understanding the financial obligations and potential profitability of a Creative World School franchise.