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Description
Investment Icon

What Are the Initial Investment Requirements for a Goddard School Franchise?

To open a Goddard School franchise, you should be prepared for a significant initial investment. The total investment ranges from $902,500 to $8,514,000, which includes a franchise fee of $135,000. Additionally, you will need to have liquid cash available between $263,500 and $295,000, along with a net worth of $500,000 to $1,000,000. These financial prerequisites ensure that franchisees are equipped to successfully launch and operate a school.

Fees Icon

What Are the Financial Performance Metrics for Goddard School Franchisees?

Goddard School franchisees can expect an average annual revenue of approximately $2,082,786 per unit. The financial performance varies significantly, with the lowest annual revenue reported at $369,395 and the highest reaching $6,408,844. The breakeven time is about 12 months, and franchisees typically see their investment payback in around 24 months, making it a potentially lucrative opportunity for investors committed to quality education.

Revenue Icon

What Are the Ongoing Fees Associated with a Goddard School Franchise?

Owning a Goddard School franchise comes with ongoing financial commitments. Franchisees are required to pay a royalty fee of 7% on their gross revenue, along with a marketing fee of 4%. These fees contribute to the brand’s overall marketing efforts and support systems, which can enhance the visibility and success of each franchise location. Understanding these costs is crucial for maintaining profitability.

Breakeven Icon

How Does the Goddard School Franchise Support Its Franchisees?

Goddard School provides extensive support to its franchisees, which is key to its operational success. Franchisees benefit from a comprehensive training program that covers everything from day-to-day operations to marketing strategies. The franchise network also offers ongoing assistance, helping owners navigate challenges and optimize their business performance. This level of support can be invaluable, especially for those new to the education sector.

The Goddard School Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$135,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

7%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

4%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$902,500 - $8,514,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$263,500 - $295,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$2,133,388
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$2,082,786
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$6,408,844
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$369,395
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Children’s Franchises
Category icon A more specific division within the broader industry.

i Category:

Education & Tutoring
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Chris Baker
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

1016 West Ninth Avenue, King of Prussia, Pennsylvania 19406-3107
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2002
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Goddard Systems, Inc.

The Goddard School Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

627
The number of locations owned by independent franchisees.

Franchised Units i

627
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 553 575 598
Net Change YoY 22 23
Franchised Units 553 575 598
Net Change YoY 22 23
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Investment Overview

The Goddard School franchise presents a significant investment opportunity with initial costs ranging from $902,500 to $8,514,000. The initial franchise fee is set at $135,000, and franchisees can expect ongoing royalty and marketing fees of 7% and 4% of gross sales, respectively. A cash reserve between $263,500 and $295,000 is also required to ensure operational stability in the early stages.

Potential About

Financial Performance

Franchisees can anticipate strong financial returns, with average annual revenue per unit reported at $2,133,388. The median revenue stands at $2,082,786, showcasing the potential for profitability. While the lowest annual revenue recorded is $369,395, the highest reaches an impressive $6,408,844, indicating a wide range of performance based on location and management.

Metrics About

Breakeven and Payback

The Goddard School franchise offers a promising financial outlook, with a breakeven period of just 12 months. Investors can expect to recover their initial investment within approximately 24 months, making it an attractive option for those seeking a relatively quick return on investment in the education sector.

Fees About

Franchise Growth

The Goddard School has shown consistent growth in its franchise network, increasing from 553 units in 2021 to 598 units in 2023. This upward trend reflects the brand's strength and appeal in the market, providing potential franchisees with confidence in the system's stability and growth prospects.

Breakeven About

Operational Expenses

Understanding operational costs is crucial for franchise success. The average annual operating expenses for a Goddard School unit total approximately $1,784,024, with payroll accounting for the largest share at $887,051. Other significant expenses include occupancy costs and miscellaneous items, which together underscore the importance of effective cost management.

Units About

Company Background

The Goddard School has established itself as a leading early childhood education provider, focusing on nurturing children in a safe and engaging environment. With a commitment to high-quality education, the franchise has built a strong reputation among parents and communities, making it a sought-after opportunity for aspiring franchisees in the education sector.

Frequently Asked Questions

The initial investment for a Goddard School franchise ranges from $902,500 to $8,514,000, which includes the franchise fee, equipment, and other startup costs.