What is the estimated total low initial investment for a Creative World School franchise?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1)(2) | $75,000 | $80,000 | Lump Sum | Signing Franchise Agreement | Us |
| Building / Leasehold Improvements, not including landscaping, irrigation, sidewalk, trail and fencing (4) | $3,500,000 | $6,000,000 | As Agreed | By agreement with provider | Lessors, Contractors, Subs |
| Landscaping, Irrigation, Sidewalk, Trail, Fencing, Playground Equipment, and Playground Surfacing (4) | $800,000 | $1,000,000 | Lump Sum or Installments | As Incurred | Third Parties |
| Impact Fees and Utility Connection Fees | $100,000 | $500,000 | Lump Sum | Prior to construction | City/County |
| Land Costs (5) | $750,000 | $1,500,000 | As Agreed | By agreement with provider | Sellers |
| Architectural/Enginee ring, Legal & Accounting Services (6) | $175,000 | $250,000 | As Agreed | By agreement with provider | Suppliers |
| Training Expenses | $10,000 | $20,000 | As Agreed | As Incurred | Suppliers |
| (lodging, food, travel) | |||||
| Opening Package Fee (3) | $275,000 | $500,000 | As Agreed | By agreement with us or our designee | Us, or our Affiliate |
| Accreditation Fee | $2,000 | $2,000 | Lump Sum | As Incurred | Us or Suppliers |
| Systems Standards | $1,050 | $1,500 | Lump Sum | Monthly | Us |
| Fee (3 months) | |||||
| Signage | $12,000 | $20,000 | Lump Sum | Within 60 days of opening School | Suppliers |
| Opening Inventory and Supplies (7) | $15,000 | $20,000 | Lump Sum | Within 60 days of opening School | Suppliers |
| Type of Expenditure (1) | Low Amount | High Amount | Method Of Payment | When Due | To Whom Payment is to be Made |
| Grand Opening Advertising | $15,000 | $50,000 | As Incurred | Within 60 days of opening School | Third Parties |
| Utility Deposits | $3,000 | $10,000 | As Incurred | Prior to opening | Third Parties |
| Insurance (8) | $9,000 | $40,000 | Lump sum | As Incurred | Third Parties |
| Additional Funds ‒ 3 | $25,000 | $150,000 | As Incurred | As Incurred | Third Parties |
| months(9) | |||||
| TOTAL ESTIMATED | $5,767,050 | $10,143,500 | |||
| INITIAL | |||||
| INVESTMENT | |||||
| UNDER THE | |||||
| FRANCHISE | |||||
| PROGRAM(9) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–21)
What This Means (2025 FDD)
According to Creative World School's 2025 Franchise Disclosure Document, the total estimated low initial investment to open a franchise is $5,767,050. This figure encompasses various expenses, with the initial franchise fee ranging from $75,000 to $80,000, depending on veteran status or if it is for each additional school. Building and leasehold improvements are estimated to be $3,500,000 to $6,000,000, while landscaping, irrigation, sidewalk, trail, fencing, playground equipment, and surfacing range from $800,000 to $1,000,000.
Additional costs include impact and utility connection fees ($100,000 to $500,000), land costs ($750,000 to $1,500,000), and architectural, engineering, legal, and accounting services ($175,000 to $250,000). Training expenses are estimated at $10,000 to $20,000, and the opening package fee ranges from $275,000 to $500,000. Other fees include the accreditation fee ($2,000), systems standards fee ($1,050 to $1,500 for three months), signage ($12,000 to $20,000), and opening inventory and supplies ($15,000 to $20,000).
Further, the initial investment includes grand opening advertising ($15,000 to $50,000), utility deposits ($3,000 to $10,000), and insurance ($9,000 to $40,000). The estimate also accounts for additional funds for the first three months of operation, ranging from $25,000 to $150,000. It is important to note that these are estimates, and actual costs may vary depending on factors such as the size of the school, local economic conditions, and management skills. Creative World School does not offer direct or indirect financing for the initial investment, but franchisees may be able to obtain financing from third-party lenders.