What is the range for 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 variety of expenses, with the most significant being building and leasehold improvements, which are estimated between $3,500,000 and $6,000,000, not including landscaping, irrigation, sidewalk, trail and fencing. Land costs are also a major factor, ranging from $750,000 to $1,500,000. These figures assume the franchisee will build a new facility to house the school.
Other significant costs include landscaping, irrigation, sidewalk, trail, fencing, playground equipment, and playground surfacing, estimated between $800,000 and $1,000,000. Impact fees and utility connection fees can range from $100,000 to $500,000. The initial franchise fee is $75,000 to $80,000, and the opening package fee, which covers interior items and equipment, ranges from $275,000 to $500,000. Architectural, engineering, legal, and accounting services are estimated to cost between $175,000 and $250,000.
Additional expenses include training expenses ($10,000 to $20,000), signage ($12,000 to $20,000), opening inventory and supplies ($15,000 to $20,000), grand opening advertising ($15,000 to $50,000), and utility deposits ($3,000 to $10,000). Insurance costs are estimated between $9,000 and $40,000. Furthermore, the estimate includes $25,000 to $150,000 for additional funds to cover the first three months of operation. Prospective franchisees should carefully consider these extensive costs and consult with business advisors to assess their financial readiness.
It is important to note that these are estimates, and actual costs may vary depending on factors such as the size of the school, the amount and variety of products and supplies needed, and local economic conditions. The FDD advises franchisees to review these figures carefully with a business advisor before making any decision. Creative World School does not offer direct or indirect financing for any part of the initial investment, and the availability and terms of financing will depend on the franchisee's creditworthiness and the lending policies of financial institutions.