37 Substantial Fees Every The Goddard School Franchisee Needs to Know

Detailed Information on The Goddard School’s Initial Franchise Fee, Royalty Fee + 35 Other Fees (Items 5 and 6, 2026 FDD)

1. Initial License Fee: $135,000

You must pay an initial license fee of $135,000 for the School you will develop under the Franchise Agreement. The initial license fee consists of an initial deposit of $30,000, which you must pay when you sign the Preliminary Agreement. The remaining $105,000 is payable when you receive a statement from The Goddard School showing the status of your account (the “Opening Invoice”) at approximately the same time that a Certificate of Occupancy, Temporary Certificate of Occupancy, or Use and Occupancy Certificate (“Certificate of Occupancy”) is issued for the School.

If, for any reason, you sign a Franchise Agreement without signing a Preliminary Agreement, you must pay $30,000 when you sign the Franchise Agreement and $105,000 when you receive the Opening Invoice.

The initial deposit of $30,000 is not refundable in whole or in part after you sign a Franchise Agreement, nor if you request to terminate the Preliminary Agreement or if it expires. The initial license fee of $135,000 is not refundable once you sign a Franchise Agreement.

2. Royalty Fee: 7% of Gross Receipts of the School. If you are an existing franchisee purchasing an additional (new) franchise for a reduced initial license fee, the royalty fee is reduced during the first year of operation of the new School to 2% of Gross Receipts for months 1-3, 4% for months 4-6, and 6% for months 7-12.

Due Date: Payable monthly on 3rd business day of each month on Gross Receipts for the preceding month.

If you initially qualify and participate in The Goddard School’s incentive program for existing franchisees purchasing an additional franchise for a new School, the reduced royalty fee is personal to you. If, at any time during the first 2 years of the new School’s operation, the condition for the discount no longer exists, you will pay the regular royalty rate of 7% going forward, as well as pay The Goddard School the difference between the 7% rate and the discounted rate you paid.

3. TGS Marketing Fund/Marketing Fee: 4% of Gross Receipts, including the Gross Receipts derived from any Annex, per month; or lesser rates The Goddard School may assess for certain time periods

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Due Date: Payable monthly at same time monthly Royalty Fee is due.

You will pay a continuing monthly marketing fee to the TGS Marketing Fund.

The Goddard School may designate an affiliate to administer the TGS Marketing Fund marketing and promotional programs for it.

4. Proprietary Curriculum Fee: then-current fee; currently $700 per month, plus taxes

Due Date: Payable monthly at same time monthly Royalty Fee is due.

You must pay The Goddard School a monthly subscription fee to use its proprietary curriculum (called Wonder of Learning), which currently includes access to an online platform that also serves as a parent communication application.

5. Local Advertising, Marketing, and Promotion: your cost

Due Date: As incurred, payable to The Goddard School or the vendor.

6. Telephone Charges: cost of telephone services

Due Date: As incurred, payable to The Goddard School or the vendor.

7. Audit Expenses: cost of audit, such as the charges of any independent accountant and the travel expenses, including food, transportation and lodging, and compensation of The Goddard School’s employees, or $10,000, whichever is greater

Due Date: Upon receipt of audit report.

Payable only if the audit or inspection discovers underpayments of more than 3%.

8. Late Notification of Adverse Action or Order Fee: $50 for each and every failure and/or refusal to comply, plus $25 per day beginning on the third day

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Due Date: Payable following each failure or refusal to comply with notification requirements; at The Goddard School’s request, within 30 days following notice of the fee, The Goddard School may withdraw the amount from your operating account pursuant to your pre-authorized draft forms.

Payable if you fail to timely notify The Goddard School and/or deliver copies to it of any adverse action or order which may adversely affect any permit, certificate or license, the operation of the School, or your financial condition.

9. Late Submission of Forms, Financial Reports, Other Reports, Information, and Data: $50 for each and every failure and/or refusal to comply, plus $25 per day beginning on the third day

Due Date: Payable following each failure or refusal to comply with reporting requirements; at The Goddard School’s request, it may withdraw the amount from your operating account pursuant to your pre-authorized draft forms.

Payable if you fail to timely submit to The Goddard School any of the forms, financial reports, reports, records, information, and/or data you are required to submit to it.

10. Transfer Initial License Fee: $40,000

Due Date: Before effective date of transfer.

Payable by buyer upon signing the Franchise Agreement; the buyer’s Franchise Agreement will have an initial term equal to the initial term then being offered by The Goddard School to franchisees purchasing a franchise to develop a new School.

11. Initial Training and Transfer Support Fee (on-site field and technical): then-current initial training and transfer support fee (currently $25,000). If you are The Goddard School’s existing franchisee and you purchase an existing School, the fee is $15,000.

Due Date: Before effective date of transfer.

Payable by buyer upon signing the Franchise Agreement for initial training and on-site field and technical training.

12. Transfer Marketing Fee: then-current transfer marketing fee (currently $15,000) or a different amount based on The Goddard School’s review of your proposed plan and assessment of the School’s needs

Due Date: Before effective date of transfer.

Payable by buyer upon signing the Franchise Agreement and is paid to The Goddard School to fund marketing and promotion support for the School.

13. Transfer Fee: $5,000 transfer assignment fee

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Due Date: Before effective date of transfer.

Transfer fee is payable by the seller when the Franchise Agreement or any interest in the franchise is transferred to cover The Goddard School’s reasonable legal and accounting fees, credit and investigative charges, travel, and other expenses.

The transfer fee is in addition to the background check fee, which is payable by either the seller or the buyer.

14. Transfer Deposit: $2,500

Due Date: Before you sign Termination of Franchise Agreement and Mutual Release.

Payable by you in connection with the transfer. The Goddard School will hold the security deposit and apply it to pay your obligations if you do not. The Goddard School will refund any excess remaining after 105 days.

15. Franchisee Add-on Fee: $10,000

Due Date: When you request permission to add persons as individual franchisees.

Payable by you in connection with your request to add persons as individual franchisees to the Franchise Agreement and/or or the Assignment and Assumption Agreement in a transaction The Goddard School does not determine in its sole business judgment to constitute a transfer of the Franchise Agreement, the franchise (including any interest in a business entity that owns the franchise), or the assets of the School.

16. Renewal License Fee: $10,000

Due Date: When you provide notice of intent to renew.

17. Background Check Fee: $1,500 per person

Due Date: You will pay The Goddard School the amount in advance if it requests before (1) effective date of transfer in the event of a transfer, or (2) addition of individual franchisees in the event of a franchisee change if background checks are required for more than two people, or (3) renewal in the event of renewal if background checks are required for more than two people, or (4) as incurred if The Goddard School deems additional background checks are necessary or desirable during the term of the franchise, including if you develop an Annex.

18. Director’s Initial Training Fee: $500 to $5,000

Due Date: Upon registration for the Director Initial Training Cohort Program.

The Goddard School currently charges a $500 fee for the Director Initial Training Program, but it may increase this fee if its costs increase. You must also pay for your directors’ salary and expenses during training, including all travel costs, including food, transportation, and lodging, if in-person training is required as part of The Goddard School’s then-current Director Initial Training Program.

19. Designated On-Site Operator Training Fee: $3,500

Due Date: As incurred.

The Goddard School will provide initial training to your Designated On-Site Operator if you hire a new or replacement Designated On-Site Operator during the Franchise Agreement’s term. You must pay The Goddard School a $3,500 fee for this training for each individual who attends.

20. Conventions: reasonable registration fee, currently $2,000 per person

Due Date: As incurred.

You must also pay the travel expenses, including food, transportation, and lodging for in-person conventions.

Attendance is required according to The Goddard School’s then-current policy. For each convention, if neither you nor your required personnel attend, you must still pay The Goddard School a registration fee for 1 individual.

21. Failure to Obtain Accreditation Fee: $1,000

Due Date: As incurred.

Failure to maintain accreditation will be a basis for enforcement action under the Franchise Agreement, including imposition of a penalty fee.

22. Retraining for Failure to Cure Default Fee: $500/day, plus The Goddard School’s personnel’s expenses

Due Date: As incurred.

The Goddard School may provide on-site training, at your cost, if you fail to timely cure a default (in addition to The Goddard School’s other rights and remedies).

23. Additional Quality Assurance Health & Safety Review Fee: currently, $500 per visit plus The Goddard School’s personnel’s expenses

Due Date: As incurred.

If you fail to satisfy The Goddard School’s requirements in 2 quality assurance inspections or evaluations within any 12-month period, The Goddard School may charge a reasonable fee for any additional inspections or evaluations.

24. Interest on Late Payments: 1 1/2% per month or the maximum rate permitted by law

Due Date: As incurred.

Any payment or other amount owed The Goddard School or its affiliates under the Franchise Agreement or other agreement or account with The Goddard School or its affiliates will bear interest, compounded monthly after the due date.

25. Insufficient Funds Fees, ACH, and Other Financial Institution Charges: the greater of $30 or the amount imposed by the financial institution for an unsuccessful or late payment and any replacement payment; up to $20 if your failure to timely report your Gross Receipts results in an additional ACH transaction

Due Date: As incurred.

26. Insurance; Insurance Reimbursement: policy cost, plus reasonable fee for The Goddard School’s services, including its costs and expenses, if it obtains insurance

Due Date: As incurred.

You must obtain and maintain the insurance coverages The Goddard School specifies. If you do not obtain the required insurance coverage, The Goddard School may secure coverage for you and charge you for its services, including its costs and expenses.

The Goddard School estimates the cost of insurance to be approximately $13,300 to $65,800 per year (not including workers’ compensation).

27. Rent for Premises of School: will vary under circumstances

Due Date: Monthly.

Although The Goddard School and its affiliates generally do not lease or sublease the School premises to you, if it does so, you may be required to pay The Goddard School or its affiliate rent under a lease or sublease.

If you sublease the School premises from The Goddard School or its affiliate, your rent may exceed the rent paid by The Goddard School or its affiliate to the prime landlord.

28. Maintenance/Refurbishing: as specified

Due Date: Maintenance as needed; refurbishing at The Goddard School’s request but not more than once every 3 years.

Maintenance may include periodic repainting, repairs, and replacement of impaired or obsolete existing improvements, indoor and outdoor equipment, and signs.

Refurbishing may include structural changes, remodeling, redecorating, replacements, modifications, and additions to existing improvements, indoor and outdoor equipment, and signs to conform to The Goddard School’s then-current standards and trade dress.

29. Site Development Fee – Annex, Relocation, Expansion: up to The Goddard School’s then-current site development fee offered for new franchises for any relocation, expansion, Annex, and material alterations of the School

Due Date: When you receive the Opening Invoice for the Annex, or at The Goddard School’s request, as applicable with respect to the School.

The Goddard School may charge you a reasonable fee for its services in connection with any relocation, expansion, Annex, and material alterations of the School, including with regard to any development or relocation, expansion, and material alterations of any Annex.

30. Proprietary Software Fee: reasonable license fee

Due Date: At The Goddard School’s request, if it implements the fee, within 30 days following notice of the fee and The Goddard School may withdraw the amount

At this time, The Goddard School does not charge a fee for use of its proprietary software (currently called Franchise Management System (FMS)), but it reserves the right to do so.

31. Computer System, IT Security, Network Equipment/Wireless Access Point Devices, and Telephone System Modifications, Enhancements, and Installation: as specified

Due Date: At The Goddard School’s request, within 30 days following notice of the fee and The Goddard School may withdraw the amount from your operating account pursuant to your pre-authorized draft forms.

The Goddard School may charge a reasonable systems fee for use of its computer system that it may provide or require you to use, for modifications, enhancements, and installations made to its computer system, network equipment/wireless access point devices, telephone systems, and its proprietary software.

32. De-Identify Premises: costs, plus reasonable administrative fee

Due Date: As incurred.

If you don’t de-identify the School premises following expiration or termination of the Franchise Agreement (if The Goddard School doesn’t elect to lease the premises), it may re-enter the premises and do so at your expense and charge you a fee.

33. Litigation Expenses: The Goddard School’s attorneys’ fees, court costs, expert fees, and litigation expenses

Due Date: As incurred.

The Goddard School may recover its costs in any action to enforce or defend its rights under the Franchise Agreement, the Preliminary Agreement, and the Development Agreement.

34. Taxes: amount of taxes

Due Date: As incurred.

If any taxing authority imposes any sales, use, gross receipts, or other tax, levy, or assessment on any payments you make to The Goddard School, you must pay the amount assessed, or reimburse The Goddard School if it must pay the taxes directly.

35. Late Crisis Notification Fee: $2,500 for each and every failure to notify, plus $500 per day beginning on the second day

Due Date: As incurred.

Because of the potential damage to the System and the goodwill associated with the Proprietary Marks, if you fail to alert The Goddard School immediately of any potential crisis situation, including any allegation or occurrence of abuse, neglect, or mistreatment of a child; any allegation or discovery that a child has been released to an unauthorized person; any occurrence of unlawful conduct in the School; any allegation or discovery of any hazardous substance associated with the School; or any outbreak of serious illness associated with the School, after you know or should reasonably know of the existence of the potential crisis, you will pay The Goddard School a late crisis notification fee to compensate for its added crisis-management efforts resulting from the late notification.

36. Indemnification: amount of loss or damages, plus costs

Due Date: As incurred.

You must indemnify The Goddard School, its subsidiaries and affiliates, and its/their respective officers, directors, managers, members, partners, shareholders, employees, and independent contractors against all claims arising from your ownership, development, construction, operation, or occupation of the School, as well as all costs, including attorneys’ fees, of defending against them.

37. Developer Add-On Fee: $10,000

Due Date: As incurred.

You must request The Goddard School’s consent to add 1 or more persons to the Development Agreement or as your owners. If The Goddard School determines or deems that the transaction does not constitute a transfer under the Development Agreement and The Goddard School consents to the transaction, you must pay The Goddard School a nonrefundable add-on fee equal to $10,000 to cover the background check fee for up to 2 persons and administrative and other expenses related to the add-on.

If more than 2 persons are to be added, you must also pay The Goddard School’s costs to obtain background checks (including credit and criminal) on those additional persons in the amount The Goddard School then estimates.

If the cost of the background check is less than the amount The Goddard School estimates and collects from you for any such additional person, The Goddard School will apply the difference as a credit to the amounts you owe it.