What was the lowest EBITDAR for Creative World School company-owned schools in 2022?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Median ($) | Average ($) | % of Avg. Gross Revenues | |---|---|---|---| | Gross Revenues | $1,538,574 | $1,688,737 | 100% | | | | | | | Royalties[1] | $102,863 | $115,776 | 7.0% | | Payroll - Salaries | $799,129 | $828,709 | 49.1% | | Payroll Taxes and Other[2] | $86,571 | $90,642 | 5.4% | | Benefits | $27,482 | $30,034 | 1.8% | | Food & Kitchen Supplies[3] | $101,686 | $105,832 | 6.3% | | Educational Expenses[4] | $46,625 | $37,514 | 2.2% | | Building Expenses[5] | $44,350 | $43,198 | 2.6% | | Automobile Expenses | $13,948 | $15,078 | 0.9% | | Advertising | $22,835 | $21,958 | 1.3% | | Insurance | $32,001 | $42,358 | 2.5% | | Telephone & Utilities | $46,812 | $49,589 | 2.9% | | General & Administrative[6] | $39,965 | $41,360 | 2.4% | | Total Expenses | $1,361,901 | $1,431,426 | 84.8% | | Net Income Before Interest, Taxes, | $176,673 | $257,310 | 15.2% | | Depreciation, Amortization, and Rent | | | | | (EBITDAR) | | | | | Grant Income | $335,064 | $393,591 | | | | | | | The high and low annual Gross Revenues for this category were $2,170,612 and $1,161,872 respectively. Two, or 40%, of 5 Company-Owned Schools attained or surpassed the average Gross Revenues in 2022.
The high and low EBITDAR for these Schools in 2022 was $469,509 and $-30,873, respectively. Two, or 40%, of 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 2022.
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
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 2022 was reported as -$30,873. This data is based on 5 company-owned schools that are 12,000 square feet or larger. EBITDAR represents Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent. Two of the five company-owned schools attained or surpassed the average EBITDAR in 2022.
It's important to note that these company-owned schools also 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. Missouri schools also received grants based on the number of employees working for a specified time period. The high and low annual grant income for these company-owned schools ranged from $223,235 to $207,297, with 80% of the schools surpassing the average grant income in 2022.
For a prospective franchisee, this information highlights the potential variability in financial performance among Creative World School locations. While some company-owned schools experienced negative EBITDAR, others performed much better. The availability and utilization of grant income also appear to play a significant role in the financial outcomes of these schools. A potential franchisee should investigate the factors that contributed to the lower EBITDAR in some locations and understand how grant opportunities and local economic conditions might impact their own school's performance.