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FDD Talk 2016: The Goddard School Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on December 29, 2016

in Child-Related Franchises, Childcare Franchise, Education Franchise, FDD Talk 2017: Children's Franchises, Franchise Earnings



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Goddard School Interior Photo by Anne Atkinson

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Goddard School franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Goddard School franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of the Goddard School’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 average gross sales, payroll, occupancy costs, miscellaneous expenses, total expenses, and EBITDA for the 406 Goddard Schools that had been open and operating for over 18 months as of December 31, 2015
  • 2015 average gross sales, payroll, occupancy costs, miscellaneous expenses, total expenses, and EBITDA for the 406 Goddard Schools that had been open and operating for over 18 months as of December 31, 2015, grouped by occupancy level (less than 70%, 70% to 80%, 80% to 90%, 90% to 100%, and greater than 100%)
  • actual average monthly EBITDA and actual average EBITDA for the first full year of operations for all 14 Goddard Schools that had their first full month of operation in 2014

Section I – Background Information

The Goddard School is a year-round educational childcare program geared towards children from six weeks to six years of age. Founded in 1986, it celebrates its 30th anniversary in 2016. It aims to make learning fun so that children are better prepared for academic success through after-school and summer programming.

Each location is a licensed childcare facility whose owner is on-site and employs both an Education Director and a team of teachers all trained in Early Childhood Education or Childhood Development.

The company provides continuing education for all of its faculty, and also uses a rigorous quality assurance program.



It currently serves more than 50,000 students at 450 locations – a figure that has more than doubled in the last 10 years.

Headquartered in King of Prussia, Pennsylvania and franchising since 1986, here’s how the Goddard School keeps kids coming back for more in the competitive educational childcare industry:

Preparation for School and Life

The chain’s motto is Learning for fun. Learning for life. Kids in Goddard School programs have plenty of fun even while gaining the skills they need for success not only in school but also in life. It focuses on respect, confidence, and joy.

Its FLEX (Fun Learning Experience) Learning Program is a well-rounded play-based curriculum created by early childhood education experts to provide top-notch preparation for social and academic success.

A Franchise on the Move

Entrepreneur magazine has named Goddard the number-one childcare franchise for fifteen consecutive years. Franchise Times has ranked Goddard in the top 200 franchise systems worldwide based on sales for the past nine years.

Can Learning Really Be Fun?

The answer to this question appears to be yes. A play-based curriculum is the key because children are far more likely to remember something they’ve learned when it’s a fun and enjoyable activity. In fact, research has shown that kids who learn through play are better at making decisions, standing up for themselves, and solving problems creatively.

A Comprehensive Curriculum

The kids are deeply engaged in play, but through the expert guidance of highly trained teachers, they also end up meeting learning goals across seven different domains, including personal and social development, language and literacy, mathematical thinking, scientific thinking and technology, social studies, creative expression, and physical development.

Accreditation and Quality Assurance

The quality assurance program and team at Goddard is focused on five primary outcomes: Respect for the individual needs of every child; a safe, nurturing atmosphere; open and daily communication with families; a professional faculty committed to early childhood development; and a learning environment with opportunities for creativity and exploration.

The company’s commitment to excellence has resulted in it achieving both AdvancED and Middle States accreditation.

Section II – Estimated Costs

  • Please click here for detailed estimates of the Goddard School franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



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