What is the low end of the estimated 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 initial investment to open a franchise ranges from $5,767,050 to $10,143,500. This substantial investment covers a multitude of expenses, with the low end representing costs associated with remodeling an existing building.
The initial investment encompasses various categories, including the initial franchise fee, which ranges from $75,000 to $80,000, building and leasehold improvements (excluding landscaping) estimated at $3,500,000 to $6,000,000, and landscaping, irrigation, and playground costs ranging from $800,000 to $1,000,000. Other significant 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).
Additional expenses include training ($10,000 to $20,000), the opening package fee ($275,000 to $500,000), accreditation fees ($2,000), system standards fees ($1,050 to $1,500 for three months), signage ($12,000 to $20,000), opening inventory and supplies ($15,000 to $20,000), grand opening advertising ($15,000 to $50,000), utility deposits ($3,000 to $10,000), insurance ($9,000 to $40,000), and additional funds for the first three months of operation ($25,000 to $150,000).
Prospective franchisees should carefully consider these costs and review them with a business advisor, as the actual expenses may vary. Creative World School does not offer direct or indirect financing, so franchisees must explore financing options through external sources, with the availability and terms depending on their creditworthiness and available collateral.