What was the median gross revenue for Creative World School franchises?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ployees based on time of service.
The high and low annual Grant income for this category was $691,235 and $223,000, respectively. There were 2, or 50%, of the 4 Company-Owned Schools that attained or surpassed the average grant income in 2023.
FRANCHISED 2023
| Median ($) | Average ($) | % of Avg. Gross Revenues | |
|---|---|---|---|
| Gross Revenues | $2,471,911 | $2,547,290 | 100% |
| Royalties[1] | $173,244 | $175,818 | 7.0% |
| Payroll - Salaries | $1,130,725 | $1,116,417 | 43.8% |
| Payroll Taxes and Other[2] | $116,688 | $116,791 | 4.6% |
| Benefits | $26,067 | $34,620 | 1.4% |
| Food & Kitchen Supplies[3] | $97,072 | $99,442 | 3.9% |
| Educational Expenses[4] | $66,168 | $61,649 | 2.4% |
| Building Expenses[5] | $58,372 | $53,809 | 2.1% |
| Automobile Expenses | $8,713 | $10,975 | 0.4% |
| Advertising | $16,362 | $19,489 | 0.8% |
| Insurance | $73,138 | $64,274 | 2.5% |
| Telephone & Utilities | $37,962 | $44,197 | 1.7% |
| General & Administrative[6] | $37,068 | $41,406 | 1.6% |
| Total Expenses | $1,838,219 | $1,838,885 | 72.2% |
| Net Income Before Interest, | $630,664 | $708,405 | 27.8% |
| Taxes, Depreciation, | |||
| Amortization, and Rent | |||
| (EBITDAR) | |||
| Grant Income | $20,000 | $44,166 | |
| The high and low annu |
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 median gross revenue for certain schools was $2,471,911 for the year ended December 31, 2024. This data is based on 18 schools with 12,000 square feet or larger that operated for a full 12 months. The reported figures include 5 company-owned schools and 13 franchised schools.
It's important to note that these figures are historical and may not be indicative of future performance. The FDD explicitly states that individual results may differ, and there is no assurance that a franchisee will achieve the same level of gross revenue. Factors such as tuition charged, employee benefits, and additional services offered can influence these amounts and percentages.
Prospective franchisees should also consider that the gross revenue information was not audited by independent certified public accountants. The reports are based on 'billings' for each period, regardless of cash funds put into the bank, and are used to calculate royalty payments. This means the actual cash flow might differ from the reported gross revenues. Creative World School also states that seasonality is a substantial factor with revenue being greater during the public school year than during the summer and breaks.
In addition to gross revenues, the FDD provides information on various expenses, such as royalties, payroll, food and kitchen supplies, and building expenses. Analyzing these expenses in conjunction with the gross revenue figures can provide a more comprehensive understanding of the potential profitability of a Creative World School franchise. The FDD also includes average gross revenues of $2,547,290 for the same period. Six, or 46%, of the 13 franchised schools attained or surpassed the average gross revenues in 2024.