What was the median total expenses 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 a |
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 total expenses for certain company-owned and franchised schools for the year ended December 31, 2024, was $1,838,219. This data is based on 18 schools with 12,000 square feet or larger that operated for a full 12 months. The expenses include royalties, payroll salaries, payroll taxes, benefits, food and kitchen supplies, educational expenses, building expenses, automobile expenses, advertising, insurance, utilities, and general and administrative expenses.
It's important to note that these figures are based on a specific subset of Creative World School locations (those 12,000 square feet or larger) and may not be representative of all franchise locations. Additionally, the FDD mentions that there are other expenses a franchisee will incur that are not included in this financial performance representation. Factors such as tuition charged, employee benefits chosen by the owner, and extras provided by the owner can affect these amounts and percentages.
A prospective franchisee should carefully consider these expenses when evaluating the potential profitability of a Creative World School franchise. While the FDD provides this historical data, individual results may vary, and there is no guarantee that a new franchisee will achieve the same level of financial performance. It is advisable to conduct thorough due diligence, including reviewing the complete Item 19 in the FDD and consulting with financial advisors, to assess the potential financial risks and rewards of investing in a Creative World School franchise.