Ambrosio’s Take
The Goddard School is one of the most financially compelling franchises in the early childhood education space, with average gross revenue growing for five consecutive years to reach $2,507,631 in 2025 among 620 mature schools, and average EBITDA of $546,554, or 21.8% of revenue, after all operating expenses including royalties. The entry point matters significantly here: leasing the facility with the landlord constructing the improvements produces a sales-to-investment ratio of 2.0:1 and a payback of roughly two years, while purchasing the land and building drops the ratio to 0.3:1 and extends the payback timeline to over a decade, though in the latter case the real estate itself carries intrinsic value separate from the business.
Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.
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Section I – Estimated initial investment (franchise costs) for The Goddard School franchise, based on Item 7 of the company’s 2026 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for The Goddard School franchise, based on Items 5 and 6 of the company’s 2026 FDD
Section III – Number of franchised and company-owned The Goddard School outlets at the start of the year and the end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD
Section IV – News updates on The Goddard School franchise opportunity
Section V – Presentation and analysis of The Goddard School’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 FDD, including information on the:
- 2020, 2021, 2022, 2023, 2024, and 2025 average gross sales, payroll, occupancy costs, miscellaneous expenses, total expenses, EBITDA, and EBITDAR for the Goddard Schools that had been open and operating for over 18 months as of December 31, 2020, December 31, 2021, December 31, 2022, December 31, 2023, December 31, 2024, and December 31, 2025, respectively
Section VI – Key ratios, comparables, computations, and analyses for The Goddard School franchise opportunity (exclusive content for Platinum subscribers)
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- The Goddard School franchise costs (if you lease the school and landlord constructs the improvements), based on Item 7 of the company’s 2026 FDD:
- Initial License Fee: $135,000
- Initial Training and Opening Support Fee: $35,000 to $42,000
- Initial Marketing Fee: $55,000 to $75,000
- Site Development Fee: $35,000
- Background Check (up to four individuals): $1,500 to $6,000
- Lease Deposit: $25,000 to $50,000
- Project Management Fee: $0 to $75,000
- Furniture, Fixtures, and Equipment: $243,000 to $307,000
- Playground Equipment: $140,000 to $240,000
- Marketing Materials, Stationery, Forms, and Curricular Resources: $15,000
- Signs: $28,000
- Computer System, IT Security, Network Equipment/Wireless Access Point Devices, Installation, Telephone System, Interactive Flat Panel, and Digital Signage Package: $26,000 to $40,000
- Security System: $45,000
- Miscellaneous Opening Costs: $120,000 to $135,000
- Additional Funds – 3 Months: $100,000 to $275,000
- Total Estimated The Goddard School Franchise Costs: $1,003,500 to $1,503,000
Section II – The Goddard School’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- The Goddard School’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2026 FDD:
- Initial License Fee: $135,000
- Royalty Fee: 7% of Gross Receipts
- Marketing Fund/Marketing Fee: 4% of Gross Receipts, including the Gross Receipts derived from any Annex, per month
- Local Advertising, Marketing, and Promotion: your cost
Section III – Number of Franchised and Company-Owned The Goddard School Outlets
Franchised
2023
- Outlets at the Start of the Year: 598
- Outlets at the End of the Year: 627
- Net Change: +29
2024
- Outlets at the Start of the Year: 627
- Outlets at the End of the Year: 642
- Net Change: +15
2025
- Outlets at the Start of the Year: 642
- Outlets at the End of the Year: 665
- Net Change: +23
Company-Owned
2023
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2024
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2025
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- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on The Goddard School Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Goddard School Franchise (Item 19, 2026 FDD)
- The following is a report of mature schools open over 18 months as of December 31, 2025 (the “Mature Schools”), identifying the actual Gross Revenue, payroll, occupancy (representing rent plus property tax expense), and miscellaneous operating expenses prepared on a cash basis for the year ended December 31, 2025 for all The Goddard School businesses operating as of December 31, 2025.
- The net result of these items is “EBITDA” which is defined as Gross Revenue less all expenses directly related to operating the School excluding interest, taxes, depreciation, and amortization. EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization.
- The report also includes an average “EBITDAR,” which is defined as EBITDA excluding rent related expenses (occupancy expenses).
- The items included in the expense category identified as miscellaneous items include bank charges, office supplies, utilities, telephone, transportation, payroll taxes, employee costs, marketing, royalties, repairs and maintenance, school supplies, snacks, technology, marketing, and professional fees. The expenses reported may also include miscellaneous items that are subject to the discretionary spending of the individual franchisee.
- “Gross Revenue” is determined on an accrual basis and represents the amount billed by a School for all services or products of any nature rendered or sold at or from or as a result of the School, and without deduction of any kind. (School services are not currently subject to sales taxes or similar taxes.)
- The first grouping in the report, Mature Schools, includes averages for the data reported for all Schools open more than 18 months as of December 31, 2025 for the year ended December 31, 2025. The report has not been audited.
- As of December 31, 2025, there were 665 Schools in operation, all of which were owned by franchisees. Of these 665 Schools, 628 Schools are Mature Schools. Eight of the 628 Mature Schools were determined to have insufficient data for reporting purposes and are not included in this report. The Mature School reporting class is based on the remaining 620 Schools.
- One Mature School closed during 2025; it had been open for at least 12 months before closing. As a result, information regarding this Mature School is not included in the report.
- The figures in the report have been compiled from operating reports supplied under the Franchise Agreement by franchisees. All of the Schools report financial information to the franchisor or Goddard Manager based upon a uniform reporting system. Neither the franchisor nor Goddard Manager has audited these figures.
- The franchisor offered substantially the same services to all of the Schools described in the report. The Schools offer substantially the same services to the public.
Average Gross Revenue, Payroll, Occupancy, Miscellaneous Operating Expenses, Total Expenses, and EBITDA for Mature Goddard School Businesses
2025 Average – 620 Mature Franchise Schools
- Gross Revenue: $2,507,631 (100.0%)
- Payroll: $968,761 (40.1%)
- Occupancy: $329,645 (13.6%)
- Miscellaneous Items: $662,671 (27.4%)
- Total Expenses: $1,961,077 (81.1%)
- EBITDA: $546,554 (21.8%)
- EBITDAR: $876,198 (34.9%)
- 2025 Median Gross Revenue: $2,329,913
- 2025 Highest Gross Revenue: $6,594,330
- 2025 Lowest Gross Revenue: $716,896
2024 Average – 596 Mature Franchise Schools
- Gross Revenue: $2,417,129 (100.0%)
- Payroll: $943,752 (39.0%)
- Occupancy: $315,124 (13.0%)
- Miscellaneous Items: $636,266 (26.3%)
- Total Expenses: $1,895,142 (78.4%)
- EBITDA: $521,987 (21.6%)
- EBITDAR: $837,111 (34.6%)
- 2024 Median Gross Revenue: $2,267,646
- 2024 Highest Gross Revenue: $6,411,013
- 2024 Lowest Gross Revenue: $574,494
2023 Average – 589 Mature Franchise Schools
- Gross Revenue: $2,282,039 (100.0%)
- Payroll: $887,051 (38.9%)
- Occupancy: $298,423 (13.1%)
- Miscellaneous Items: $598,550 (26.2%)
- Total Expenses: $1,784,024 (78.2%)
- EBITDA: $498,015 (21.8%)
- EBITDAR: $796,438 (34.9%)
- 2023 Median Gross Revenue: $2,131,739
- 2023 Highest Gross Revenue: $6,408,844
- 2023 Lowest Gross Revenue: $369,395
2022 Average – 563 Mature Franchise Schools
- Gross Revenue: $2,095,670 (100.0%)
- Payroll: $791,608 (37.8%)
- Occupancy: $284,025 (13.6%)
- Miscellaneous Items: $554,982 (26.5%)
- Total Expenses: $1,630,615 (77.8%)
- EBITDA: $465,055 (22.2%)
- EBITDAR: $749,081 (35.7%)
- 2022 Median Gross Revenue: $1,955,971
- 2022 Highest Gross Revenue: $6,440,975
- 2022 Lowest Gross Revenue: $452,285
2021 Average – 532 Mature Franchise Schools
- Gross Revenue: $1,798,771 (100.0%)
- Payroll: $680,493 (37.8%)
- Occupancy: $267,854 (14.9%)
- Miscellaneous Items: $476,582 (26.5%)
- Total Expenses: $1,424,929 (79.2%)
- EBITDA: $373,842 (20.8%)
- EBITDAR: $641,696 (35.7%)
- 2021 Median Gross Revenue: $1,669,054
- 2021 Highest Gross Revenue: $6,257,269
- 2021 Lowest Gross Revenue: $213,171
2020 Average – 504 Mature Franchise Schools
- Gross Revenue: $1,336,520 (100.0%)
- Payroll: $579,551 (43.4%)
- Occupancy: $236,803 (17.7%)
- Miscellaneous Items: $389,825 (29.2%)
- Total Expenses: $1,206,179 (90.2%)
- EBITDA: $130,341 (9.8%)
- EBITDAR: $367,144 (27.5%)
- 2020 Median Gross Revenue: $1,291,314
- 2020 Highest Gross Revenue: $5,052,878
- 2020 Lowest Gross Revenue: $207,178
- Some Schools have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.
Section VI – The Goddard School Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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