What was the high and low EBITDAR for Creative World School franchised schools in 2023?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ls attained or surpassed the average Gross Revenues in 2024. | | | | The high and low annual Gross Revenues for this category were $3,075,238 and $1,427,271, respectively. Six, or 46% of 13 Franchised Schools attained or surpassed the average Gross Revenues in 2023.
The high and low EBITDA
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 highest EBITDAR for franchised schools in 2023 was $1,166,308, while the lowest was $44,478. EBITDAR represents Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent. The data is based on 13 franchised schools that were 12,000 square feet or larger. It is important to note that only 38% of these schools, specifically five out of the thirteen, achieved or surpassed the average EBITDAR during that year.
These figures provide a glimpse into the potential earnings for Creative World School franchisees, but it's essential to understand the context. The document mentions that some schools received significant grant income and Employee Retention Tax Credits (ERTC) during this period, which could have influenced their EBITDAR. These additional income sources may not be available or consistent in the future, so prospective franchisees should not rely solely on these past figures.
Furthermore, the FDD explicitly states, "Some Schools have sold or earned these amounts. Your individual results may differ. There is no assurance that you'll sell or earn as much." This disclaimer highlights the inherent risks and uncertainties in any franchise investment. Factors such as location, competition, management skills, and local economic conditions can significantly impact a franchisee's financial performance. Therefore, while the high and low EBITDAR figures offer a benchmark, they should be considered alongside other factors and a thorough business plan.
Prospective franchisees should carefully review the complete Item 19 of the FDD, consult with existing franchisees, and conduct their own independent financial analysis to determine the potential profitability of a Creative World School franchise. Understanding the factors that contributed to the high and low EBITDAR results in 2023, as well as the potential impact of grants and tax credits, is crucial for making an informed investment decision.