What was the high and low EBITDAR for Creative World School franchised schools in 2024?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Median ($) | Average ($) | % of Avg. Gross Revenues | |---|---|---|---| | Gross Revenues | $1,716,547 | $1,843,779 | 100% | | | | | | | Royalties[1] | $121,656 | $129,151 | 7.0% | | Payroll - Salaries | $921,186 | $912,529 | 49.5% | | Payroll Taxes and Other[2] | $97,738 | $97,839 | 5.3% | | Benefits | $27,735 | $34,796 | 1.9% | | Food & Kitchen Supplies[3] | $93,392 | $105,964 | 5.7% | | Educational Expenses[4] | $75,054 | $79,148 | 4.3% | | Building Expenses[5] | $43,958 | $39,056 | 2.1% | | Automobile Expenses | $13,157 | $14,946 | 0.8% | | Advertising | $32,644 | $31,902 | 1.7% | | Insurance | $50,746 | $53,203 | 2.9% | | Telephone & Utilities | $47,899 | $52,605 | 2.9% | | General & Administrative[6] | $43,281 | $43,270 | 2.3% | | Total Expenses | $1,579,193 | $1,594,409 | 86.5% | | Net Income Before Interest, Taxes, | $141,557 | $249,370 | 13.5% | | Depreciation, Amortization, and Rent | | | | | (EBITDAR) | | | | | Grant Income | $199,174 | $179,336 | | | | | | | The high and low annual Gross Revenues for this category were $3,486,051 and $1,267,343, respectively. Six, or 46%, of the 13 Franchised Schools attained or surpassed the average Gross Revenues in 2024.
The high and low EBITDAR for these S
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 and low EBITDAR (Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent) for franchised schools in 2024 was $1,250,870 and $165,332, respectively. This data is based on 13 franchised schools that were 12,000 square feet or larger. The FDD indicates that 38% of these schools, specifically five out of the thirteen, achieved or surpassed the average EBITDAR during the 2024 calendar year.
EBITDAR is a financial metric used to assess a company's operating performance. It gives prospective franchisees insight into the potential profitability of Creative World School franchises by providing a range of earnings before considering factors like interest, taxes, depreciation, amortization, and rent. This can be useful for comparing the earnings potential of different franchise locations or assessing the overall financial health of existing franchises.
It is important to note that these figures represent the performance of a specific subset of Creative World School franchises (those 12,000 square feet or larger) and that individual results may vary. Factors such as location, management skills, local economic conditions, and the ability to manage expenses can significantly impact a franchisee's financial performance. The FDD also mentions that some schools received grant income and Employee Retention Tax Credits (ERTC), which could have influenced their EBITDAR. A prospective franchisee should consider these factors and conduct thorough due diligence before investing in a Creative World School franchise.
Creative World School states that they have written substantiation to support the information in this financial performance representation, which will be made available to you upon reasonable request.