Frequently Asked Questions
You do not need previous preschool or childcare experience to own a Creative World School®. Most franchisees hire a qualified Director; however, we do recommend that you become certified by your state to be a Director in case of emergency.
Our franchise fee is $60,000, which is one of the lowest in our industry. We offer a tiered royalty program to assist in your initial profitability, whereby you pay no royalties until you have 75 children enrolled, then the first year’s royalty is 5% of gross revenue, the second year’s royalty is 6%, and the third year and beyond is 7%.
Our smaller school is a 10,000 square foot building and licenses for 180 children. The total cost of project with typical construction costs and land prices for our smaller school is currently about $3.5 million*. Our larger school is a 13,000 square foot building and licenses for 250 children. The total cost of project with typical construction costs and land prices for our larger school is currently about $4.5 million*. The cost of projects above are total costs of everything and include our $60,000 franchise fee, which is our only up-front fee. We do not charge a real estate fee or development fee, nor charge for either of our prototype building plans. *Land prices and construction costs might be higher in your geographical area.
An excellent way to finance your school is to take advantage of the long-term, fixed-interest rates of SBA 504 and 7A loan programs available through banks in your area. Creative World School franchisees are eligible for expedited and streamlined SBA loan processing through the SBA’s Franchise Registry Program, www.franchiseregistry.com. The SBA requires a minimum of 10 – 15% cash down payment, so the current minimum cash required for our smaller school is about $350,000 – $525,000 and the larger school will require at least $450,000 – 685,000 cash. Sometimes IRA retirement funds, home equity, another family member, or partner can be utilized to meet the equity requirements. Wondering if you qualify? Call us to help you evaluate your financial status for school ownership!
The profitability of your franchise business all depends on you. The gross revenue and net income of our franchise schools varies widely from franchisee to franchisee; however, the Average Gross Revenue of our large franchised schools in 2016 was $ 1,615,974 and the Net Income (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent: EBITDAR) was $452,333, or 28.0%, profit before rent or mortgage payments. Full disclosure of our Financial Performance Representations is in Item 19 of our Federal Disclosure Document (FDD), which is available upon request.
It usually takes 12 to 14 months to complete a school construction project. Zoning, permitting and weather conditions can require additional time.
Absolutely. You will have a 5 mile radius of protection around your school where no other Creative World School may be located.
Yes, we will help you analyze the demographics of available sites in your market and evaluate them in terms of price, location, access and zoning. We also offer a full set of construction plans and specifications to adapt to your site and will assist you in all phases of construction.
Our affiliate, Discount Preschool, contracts for large quantities of equipment and supplies at reduced prices. For your initial order of equipment and supplies, we not only deliver, but also set up everything in place so your school is ready to go on opening day.
We will conduct initial operations management training for you and one or two management personnel at our training facility and/or at a designated school for approximately three weeks. In addition, we will provide approximately three weeks of employee/staff training at your school prior to opening. Your entire staff will receive periodic, ongoing training as continued support from Creative World School.
Our Creative World School® marketing department, including an in-house graphic design team, will guide and assist you in utilizing our inventory of proven direct mail and advertising materials which will be tailored to your school and its opening activities. Creative World School will also help you decide how to spend the required $5,000 on your grand opening advertising with local media.
Just call our franchise department at (800) 362-5940. We look forward to working with you to achieve your dream!