What was the high EBITDAR for Creative World School company-owned schools in 2024?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
DAR YEAR 2023 COMPANY OWNED**
| • The high and low annual Gross Revenues for this category were $2,741,291 and $1,336,074, | |
|---|---|
| respectively. There were 2, or 40%, of the 5 Company-Owned Schools attained or surpassed the average Gross Revenues in 2024. • The high and low EBITDAR for these Schools in 2024 was $641,765 and $(18,859) respectively. Two, or 40%, of the 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 2024. | |
| 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 on the number of employees | |
| working for a specified time period as well as Retention grants to pay eligible employees based on time of service. |
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 high EBITDAR for company-owned schools in 2024 was $641,765. This data is based on 5 company-owned schools that are 12,000 square feet or larger. EBITDAR is defined as Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent.
It is important to note that only 40% (2 out of 5) of the company-owned schools attained or surpassed this high EBITDAR in 2024. This indicates a significant range in performance among the company-owned schools. Additionally, the company-owned schools received significant grant income from their respective states and/or counties, including ARPA funds, which were used for various purposes such as playground equipment, technology, payroll, and rent. The high and low annual grant income for these schools was $207,794 and $89,869, respectively.
A prospective franchisee should consider that these figures are based on company-owned schools and may not be directly transferable to franchised locations. Factors such as grant income, which may vary by location and year, can significantly impact financial performance. It is crucial for potential franchisees to conduct thorough due diligence and consider all factors that may affect their school's profitability.
Furthermore, the FDD indicates that the expense figures include items such as royalties, payroll, food, educational expenses, building expenses, advertising, insurance, utilities, and general/administrative costs. However, there may be other expenses that a franchisee will incur that are not included in this financial performance representation. Therefore, a potential franchisee should carefully review all potential expenses and revenue streams to develop a realistic financial projection for their Creative World School franchise.