Celebree School franchise unit economics
Celebree School franchisees run early education and child care schools with an outdoor playground, billing families weekly tuition.
Celebree School in the news
- Celebree School Celebrates Opening of 50th Franchise Location, Marking Major Growth Milestone · Franchising.com ·
- Celebree School Awards New Franchise Agreement in Phoenix, Marking First Arizona Location · Franchising.com ·
Each Celebree School headline above is the publisher's own and links to the publisher. Averan Advisors checked these Celebree School links on 11 October 2026. Franchise news lists news on 95 brands, including Celebree School. Celebree School is in the Early Education and Child Care franchise guide.
Celebree School franchise at a glance
Eighteen mature franchised schools averaged $2,190,264 of net revenue and kept 15.2% at profit, against 26 mature company-operated schools at $2,261,682 and 24.5%.
Celebree School franchisees averaged $2,190,264 of sales in 2025, with a median of $2,260,904, according to Item 19 of Celebree School’s 2026 FDD, issued 2 April 2026. The 18 in that group are 41%* of Celebree School’s 44 locations. Fees paid to Celebree School come to about 9.79%* of sales. A Celebree School franchise costs $1,023,550 to $1,404,100 to open.
- A Celebree School franchise costs $1,023,550 to $1,404,100 to open, including a $75,000 initial franchise fee, according to the brand's 2026 FDD.
- Celebree School charges a royalty of 7% of sales, a 2% brand fund contribution and a $1,450 monthly technology fee.
- Celebree School reported 44 franchised locations in its 2026 FDD.
- Celebree School’s 18 mature franchised schools averaged EBITDA of 15.2% of net revenue in 2025. Celebree School’s FDD defines EBITDA as net revenue less employee, facility and other operating costs, including the royalty and brand fund, before interest, taxes, depreciation and amortization.
- At the average Celebree School location, wages took 48.6% and rent and space costs took 15.6% of sales.
- Work out Celebree School's fees at your own sales with the minimum fee calculator.
These figures come from Celebree School's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- Brand charges account for the 9.3-point margin gap to within half a point. Company profit of 24.5% less $220,952 of brand charges gives 14.7% *, against a franchised actual of 15.2%.
- Other operating costs are 17.4% of revenue at a franchised school and 7.8% at a company one. A 9.7-point difference *, because royalty, brand fund and system fees sit inside that line for a franchisee and vanish for the company.
- Franchised schools spend 2.7 points less on wages. That is 48.6% of revenue against 51.3%, $59,898 a year at the same revenue *.
- And they pay 3.6 points more for the building. Rent, common area charges and property tax at 15.6% of revenue against 11.9%, $79,137 a year at the same revenue *.
- Local advertising costs $65,000 a year until weekly revenue passes $28,000, then 2%. $43,805 at the mature franchised average *, so the obligation falls $21,195 as the school fills.
How much does a Celebree School franchise make?
The average Celebree School unit reported $2,190,264 of revenue in the 2026 FDD, and the median reported $2,260,904. The brand’s disclosure document puts EBITDA at 15.2% of revenue. Fees come off the top first, at about 9.8% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Top performers
What separates the top Celebree School performers
Celebree School publishes a range for its schools instead of grouped averages. The highest-selling of the 18 mature Celebree School franchised schools had $3,927,382 of net revenue in 2025. The lowest-selling Celebree School in that group had $995,283. Both run the same brand, on the same agreement, paying the same fees.
Decided before you open
- Site and trade area.The highest-selling Celebree School sells 3.9× the lowest-selling one. Catchment, daytime population and neighboring businesses affect where a location falls.
- Opening cost range.Opening costs $1,023,550 to $1,404,100, a 1.4× range inside one brand.
- Lease cost.Occupancy cost ran 15.6% of sales in this filing. Rent stays the same when sales fall, so it takes a larger share of sales at lower-selling locations.
Live operating levers
- Wages.Wages take 48.6% of sales, against EBITDA of 15.2%. The levers are staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission.
- Occupancy cost.Rent and building costs take 15.6% of sales here. The rent is fixed when the lease is signed, so this share falls only as sales per square foot rise.
- Enrollment.The license sets the number of places. Track how many are filled, the price of each, and how long families stay.
- Fees.Celebree School’s fees run about 9.8% of sales, and Celebree School sets no minimum royalty.
Context you underwrite around
- Locations included.These figures cover 18 of 44 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- The franchisor reports its own locations too.The franchisor reports its own locations alongside the franchised ones. Treat them as a guide to what is possible. They do not represent the system: they are operated by the franchisor, usually mature, and usually few.
Two profit and losses
Revenue and expenses, franchised and company schools, 2025
| Line | Franchised, 18 schools | Share of revenue | Company, 26 schools | Share of revenue | Difference in points * |
|---|---|---|---|---|---|
| Net revenue | $2,190,264 | 100.0% | $2,261,682 | 100.0% | n/a |
| Employee costs | $1,063,621 | 48.6% | $1,160,154 | 51.3% | −2.7 |
| Facility costs | $413,028 | 18.9% | $373,075 | 16.5% | +2.4 |
| Other operating costs | $381,460 | 17.4% | $175,434 | 7.8% | +9.7 |
| Total operating expenses | $1,858,109 | 84.8% | $1,708,663 | 75.5% | +9.3 |
| EBITDA | $332,155 | 15.2% | $553,019 | 24.5% | −9.3 |
| Rent, common area charges and property tax | $340,869 | 15.6% | $270,266 | 11.9% | +3.6 |
| EBITDAR | $673,023 | 30.7% | $823,285 | 36.4% | −5.7 |
| Median net revenue | $2,260,904 | n/a | $2,213,293 | n/a | n/a |
| Range of net revenue | $995,283–$3,927,382 | n/a | $1,225,829–$3,077,948 | n/a | n/a |
| Schools at or better than the revenue average | 10 (55.6%) | n/a | 12 (46.2%) | n/a | n/a |
| Schools at or better than the profit average | 10 (55.6%) | n/a | 15 (57.7%) | n/a | n/a |
Both statements are as the brand reported it; the difference column and the franchised total-expense percentage are marked *.
Franchised schools have the wider range at both ends. That is $995,283 to $3,927,382 against $1,225,829 to $3,077,948, 4.0 times against 2.5 *. The top franchised school out-bills every company school and the lowest-selling sits $230,546 below the company minimum.
The franchised median sits above its own average. $2,260,904 against $2,190,264, while the company's median sits $48,389 below its average. So the franchised group's mean is dragged by a small number of low schools.
Rent alone is 15.6% of a franchised school's revenue. That is $340,869 a year, against profit of $332,155. The occupancy cost more than the school earns after everything else. So EBITDAR at 30.7% and EBITDA at 15.2% tell such different stories.
Ten of 18 franchised schools beat their own revenue average. That compares with 12 of 26 company schools. The same 10 beat the profit average, so revenue and margin travel together in this group.
Where the gap goes
Brand charges at company school revenue
| Charge | Amount | Share of net revenue * |
|---|---|---|
| Average net revenue, 26 company schools | $2,261,682 | 100.00% |
| Royalty fees | $158,318 | 7.00% |
| Brand fund contributions | $45,234 | 2.00% |
| Centralized system fees | $17,400 | 0.77% |
| Total | $220,952 | 9.77% |
As the brand reported it; the percentage column is marked *.
| Step | Amount | Share of revenue |
|---|---|---|
| Company schools' profit | $553,019 | 24.5% |
| Less the brand charges above | −$220,952 | −9.8 |
| Company schools adjusted to a franchisee's cost base | $332,067 | 14.7% |
| Franchised schools' actual profit | $332,155 | 15.2% |
| Franchisees ahead by | $88 | 0.5 points |
We applied the filed franchisee charge table to the filed company profit line.
| Line | Points of revenue | At the franchised revenue of $2,190,264 |
|---|---|---|
| Franchisees spend less on staff | −2.7 | +$59,898 |
| Franchisees spend more on the building | +2.4 | −$51,734 |
| Franchisees pay the brand | +9.7 | −$211,566 |
| Net effect on profit | −9.3 | −$203,402 |
We restated each company cost line at the franchised group's revenue and compared it with the franchised figure.
Staff, building and brand charges add to the 9.3-point gap. Staff, building and brand charges add to 9.3 points *, which is exactly the profit difference. The operating penalty to being a franchisee here is the fee alone.
Franchisees save $59,898 a year on staff. 48.6% of revenue against 51.3% *, on a line that is nearly half of all spending. That is an owner in the building.
They spend $51,734 more on the building. That is 18.9% against 16.5% *. Company schools were sited earlier and on different terms, and the difference is close to what the staffing advantage produces.
The brand line is $211,566. The published charge table prices royalty, brand fund and system fees at $220,952 on a slightly larger revenue base, so the two measures agree within 4% * and confirm that the other-operating-cost gap is the fee.
Fees and what it costs to open
Royalty and brand charges
| Charge | Rate | At $2,190,264 of net revenue |
|---|---|---|
| Royalty | 7% of net revenue, weekly | $153,318 |
| Brand fund | 2% of net revenue, ceiling 3% | $43,805 |
| Local advertising | $1,250 a week, then 2% above $28,000 of weekly revenue | $43,805 |
| Centralized system fee | $1,450 a month | $17,400 |
| Paid to the brand (all but local advertising) | n/a | $214,523 |
| Share of net revenue | n/a | 9.8% |
| Regional cooperative, where one exists, credited against local advertising | 0.5% of net revenue | $10,951 |
We applied the published rates to the filed franchised average.
| Item | Low | High |
|---|---|---|
| Furniture, fixtures, equipment and toys | $200,000 | $235,000 |
| Outdoor playground equipment and surfacing | $190,000 | $225,000 |
| Additional funds, three months | $125,000 | $200,000 |
| Initial franchise fee | $75,000 | $75,000 |
| Pre-opening enrollment and grand opening marketing | $60,000 | $80,000 |
| Financing costs | $56,000 | $79,000 |
| Pre-opening working capital | $50,000 | $75,000 |
| Information technology equipment and software | $45,000 | $65,000 |
| Professional fees | $40,000 | $50,000 |
| Site development assistance fee | $30,000 | $30,000 |
| Training assistance and opening support fee | $30,000 | $30,000 |
| Lease security deposit | $26,000 | $52,000 |
| Exterior and interior signs | $23,800 | $30,600 |
| Security and electronic access system | $20,000 | $40,000 |
| Start-up supplies and inventory | $19,000 | $25,000 |
| Centralized system initial fee | $15,000 | $15,000 |
| Pre-opening temporary welcome center | $6,500 | $10,000 |
| Insurance, three months | $4,250 | $13,500 |
| Licenses and permits | $4,000 | $25,000 |
| Lease, three months | $0 | $40,000 |
| Utility deposits | $2,000 | $4,000 |
| Training expenses | $2,000 | $5,000 |
| Total | $1,023,550 | $1,404,100 |
As the brand reported it, reordered here by size; both columns add to their stated totals exactly *.
Discounts available
- Celebree School takes $20,000 off the first school's initial franchise fee for honorably discharged veterans who hold at least 51% and serve as Operating Principal.
- Celebree School charges $70,000 for a second school and $65,000 for a third school developed under a Development Agreement.
From Item 5 of the Celebree School 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The playground is 18.6% of the cost of opening. That is $190,000 to $225,000 *, close to the furniture and equipment line. It is the single item that separates this format's build cost from a classroom-only model.
Opening repays in 3.1 years at the franchised profit line. That is $1,023,550 against $332,155 *, or 1.9 years at the company schools' $553,019. Rent sits below both figures, so both describe earnings before the building is paid for.
The royalty holiday is worth 2.3% of first-year revenue. The royalty is zero for 12 weeks and 4% for 12 more *. Against a minimum local advertising charge of $65,000 running from the first week, the net effect in year one still leans against the new school.
A second school costs $50,000 at signing against $75,000. That is a $70,000 fee less a $20,000 development fee already paid. The third costs $45,000 the same way, so three schools have $210,000 of fees against $225,000 bought one at a time *.
The network of locations
Units opened and closed, 2023 to 2025
| Measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Franchised at start | 13 | 20 | 29 |
| Opened | n/a | 9 | 16 |
| Terminations | n/a | 0 | 0 |
| Non-renewals | n/a | 0 | 0 |
| Reacquired by franchisor | n/a | 0 | 1 |
| Franchised at end | 20 | 29 | 44 |
| Company-operated at end | 26 | 26 | 28 |
| Total outlets at end | 46 | 55 | 72 |
As the brand reported it; 2024 and 2025 reconcile exactly *.
Twenty-five of the 44 franchised schools opened inside 24 months. So the mature franchised group is 18 schools while the company's is 26. The published franchised profit line describes the older 41% of the estate.
Zero terminations and zero non-renewals in three years. Across a system that went from 39 outlets to 72. The single franchised school that left went back to the franchisor.
The company still runs more schools than it has mature franchisees. That is 28 against 18. That is unusual at this stage and it is what makes the two profit statements directly comparable on similar revenue.
Sixteen schools opened during 2025 against nine the year before. Each one has a $65,000 minimum local advertising charge and a royalty holiday for 24 weeks. So the system's cash profile is weighted toward schools still filling.
Questions we get asked
Questions owners ask.
How much does a Celebree School franchise make?
Celebree School franchisees averaged $2,190,264 of sales in 2025, with a median of $2,260,904, according to Item 19 of Celebree School’s 2026 FDD, issued 2 April 2026. The 18 in that group are 41%* of Celebree School’s 44 locations. Fees paid to Celebree School come to about 9.79%* of sales. A Celebree School franchise costs $1,023,550 to $1,404,100 to open.
What should a Celebree School be billing?
Across 18 mature franchised schools, net revenue averaged $2,190,264 in 2025 with a median of $2,260,904, ranging from $995,283 to $3,927,382. 10 of the 18 reached the average. The 26 mature company-operated schools averaged $2,261,682 with a median of $2,213,293, ranging from $1,225,829 to $3,077,948. A mature school is one open at least 24 months.
What is left after costs at Celebree School?
At a franchised school, employee costs took 48.6% of net revenue, facility costs 18.9% and other operating costs 17.4%, leaving EBITDA of $332,155 or 15.2%. Adding back rent, common area charges and property tax of $340,869 gives EBITDAR of $673,023 or 30.7%. At a company-operated school the same lines read 51.3%, 16.5% and 7.8%, leaving 24.5% at EBITDA and 36.4% at EBITDAR. EBITDA and EBITDAR both sit before interest, tax, depreciation and amortization, and the franchised EBITDA already has the royalty, brand fund and system fees inside other operating costs.
Why do company schools keep more at Celebree School?
The difference at Celebree School comes almost entirely from the fee. Royalty, brand fund and system fees come to $220,952 on the company schools’ average revenue. Deducting that from their $553,019 of profit gives $332,067, against a franchised actual of $332,155, which is marked *. Broken out, franchisees spend 2.7 points less of revenue on staff, 2.4 points more on the building and 9.7 points more on other operating costs. That nets to the 9.3-point profit difference exactly.
What fees does Celebree School charge?
Celebree School charges a royalty of 7% of net revenue, collected weekly, waived for the first 12 weeks and halved to 4% for weeks 13 to 24. The Celebree brand fund contribution is currently 2% and may rise by half a point at a time to a 3% ceiling. Local advertising must be at least $1,250 a week until net revenue in a week passes $28,000, then 2%. The centralized system fee is $1,450 a month, and a 0.5% cooperative contribution applies where a regional cooperative exists, credited against local advertising. At the mature franchised average the royalty, brand fund and system fee come to $214,523 a year, or 9.8% of net revenue, which is marked *, and local advertising adds $43,805.
Who does bookkeeping for a Celebree School franchise?
Three things shape the close at a Celebree School. First, royalty and brand fund are collected weekly on net revenue, so the revenue figure has to be right every week. Net revenue is billed revenue, so a school with families in arrears is paying fees on money it has yet to receive. Second, the local advertising obligation switches from a flat $1,250 a week to 2% of revenue the first week net revenue passes $28,000. A shortfall is either spent the following quarter or paid to the brand fund. That makes a running annual tally of local spend a real liability. Third, other operating costs have the brand charges alongside food, materials, utilities and insurance (at the published averages the fees are 9.8 points of the 17.4, an Averan calculation marked *) so splitting that line into contractual and controllable is what makes it usable against the published benchmark. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
Questions worth putting to Celebree School
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- Is the profit figure in Item 19 before or after owner pay, and how many locations sit below it?
- Which factors does Celebree School see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many Celebree School locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →How does your school read against both statements at Celebree School?
We review your unit economics and cash forecast and build your reporting around other operating costs split into contractual and controllable, a running local advertising tally and weekly revenue, which drives weekly fees.
Talk to AveranWhere these figures come from.
Every figure here comes from Celebree Enterprises, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Celebree School® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Celebree Enterprises, LLC, 2026 Franchise Disclosure Document, issued 2 April 2026.
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Celebree School reads against the rest of the early education and child care group: Kiddie Academy · Lightbridge Academy · Primrose Schools · Soccer Shots · The Goddard School · The Learning Experience. The early education and child care guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.