What was the low EBITDAR for Creative World School company-owned 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 - | $921,186 | $912,529 | 49.5% |
| Salaries | |||
| 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 $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
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 lowest EBITDAR for company-owned schools in 2024 was $(18,859). 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's important to note that while most of the company-owned Creative World School locations were profitable, one location experienced a loss when considering EBITDAR. This figure provides a potential downside scenario for prospective franchisees. It is important to investigate the factors that contributed to this lower performance and understand how to mitigate similar risks in their own franchise.
Furthermore, the company-owned schools received significant grant income from their respective states and/or counties, including ARPA funds. These funds were used for purposes such as playground and classroom equipment, technology replacement, or to supplement payroll, rent, and additional supplies. The high and low annual Grant income for this category was $207,794 and $89,869, respectively. This grant income could significantly impact the overall financial performance of the schools and should be considered when evaluating the EBITDAR figures.