Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Same Year-Over-Year Enrollment Growth for Great Play Units (2013 FDD)

by Franchise Chatter on July 22, 2013

in Child-Related Franchises, Franchise Earnings



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Highlights of Great Play’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

  • Tables 2, 3, and 4 summarize class enrollment information. Class enrollment has generally accounted for the majority of revenue at each Unit. The information for Tables 2, 3, and 4 was taken directly from the company’s customer enrollment system, or “portal”.
  • Great Play Photo from courantblogs.comWhile the data entries should match to actual customer enrollments at each site, the company has not independently verified each entry.
  • Table 2 presents information about year-over-year class enrollment growth rates. While financial results (including the information in Table 1) are reported on a calendar year basis, the company refers in Table 2 to the “program year.” This is the period from roughly August to June, which matches the local school year calendar in each location and is the main session for classes.
  • Typically, sessions run continuously during that period, other than Christmas/New Year’s break, during which most Units hold camps.
  • Great Play tracks enrollment trends for a given program year versus the prior program year to compare Same-Unit Growth, an important metric it believes indicates local market acceptance and customer satisfaction, and that becomes a primary driver of long-term financial performance.
  • The Units represented in Table 2 include all franchised and affiliate-owned units that were open for at least a portion of the 2010-2011 program year (beginning August 2010) and therefore have same-unit data to compare to the 2011-2012 program year.
  • The business operations of these six units are substantially similar to the business operations of the franchise system generally, but franchisee results can vary dramatically.
  • The growth figure for each Unit compares the total number of student-weeks of enrollment in classes a Unit had during the program year. For those Units that opened during the 2010-2011 program year, only data for the matching partial year in 2011-2012 is included.
  • Class enrollment is not the only revenue producing activity for Great Play units. Other activities include parties, camps, and clinics, summer classes, etc. However, class enrollment during the program year generally represents the majority of revenue and the company considers it to be a primary driver of overall Unit success


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