Celebree School franchise unit economics
Celebree School franchisees run early education and child care with a large outdoor playground attached. 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%. Take the $220,952 of brand charges off the company figure and it lands at 14.7%. The whole gap is the fee.
- Primary source
- Celebree Enterprises, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 18 of 44 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
The company’s 26 mature schools keep 24.5% at profit. Eighteen mature franchised schools keep 15.2%. Deduct the royalty, brand fund and system fee ($220,952) and the company figure lands at 14.7%, so the entire ownership gap is the fee, and franchisees are running half a point ahead of it.
- The 9.3-point margin gap is the fee, almost exactly. 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 run 2.7 points leaner on wages. 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 the profit line at 15.2% of revenue. Fees come off the top first, at about 12% 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 splits its locations into groups instead of publishing one average. The best group averaged $3,927,382 a year. The worst averaged $995,283. Both run the same brand, on the same agreement, paying the same fees.
Decided before you open
- Trade area and site.A 3.9× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- What you spend to open.Opening costs $1,023,550 to $1,404,100, a 1.4× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
- Lease economics.Occupancy cost ran 15.6% of sales in this filing. The rent does not fall when sales do, so the same lease is a far heavier line at the bottom of the system than at the top. That is how a weak site compounds into a weak profit line.
Live operating levers
- Wages, the dominant line.Wages take 48.6% of sales, against 15.2% kept at the end. Staff productivity, scheduling against demand hour by hour, and the balance of base pay to commission are where this is won. Small movements here move the result more than anything else, because nothing else in the structure is that large.
- Occupancy, the line that does not flex.Rent and building costs take 15.6% of sales here. Sales per square foot and the hours the space is earning are the only two ways to move it, because the rent itself is fixed at signing.
- Enrolment, the operating driver.This model bills on enrolment. The licence fixes how many places exist, so what is left is how many are filled, what each is priced at, and how long a family stays. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Fees, and where the minimum bites.Fees run about 12.0% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
Context you underwrite around
- The reporting screen.18 of 44 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- Brand-owned locations.The franchisor reports its own locations alongside the franchised ones. Treat them as indicative rather than representative: they are operated by the franchisor, usually mature, and usually few.
Two profit and losses
The same statement, twice.
| 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 |
| profit | $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. $995,283 to $3,927,382 against $1,225,829 to $3,077,948, 4.0 times against 2.5 *. The best 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. $340,869 a year, against profit of $332,155. The occupancy cost more than the school earns after everything else. That is why EBITDAR at 30.7% and profit at 15.2% tell such different stories.
Ten of 18 franchised schools beat their own revenue average. Against 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
Nine point three points, itemized.
| 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 |
Ours, applying 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 |
Ours, restating each company cost line at the franchised group's revenue and comparing it with the franchised figure.
Every point of the gap is explained. 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 give $51,734 of it back on the building. 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
Twelve percent, and a million-dollar build.
| 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 |
| Total | n/a | $258,329 |
| Share of net revenue | n/a | 11.8% |
| With a regional cooperative at 0.5% | n/a | $269,280 (12.3%) |
Ours, applying 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 *.
The playground is 18.6% of the cost of opening. $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. $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. 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. 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
Thirteen to forty-four in three years.
| 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. Which is why 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. 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.
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 a franchised school, employee costs took 48.6% of net revenue, facility costs 18.9% and other operating costs 17.4%, leaving profit 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 profit and 36.4% at EBITDAR. Both figures sit before interest, tax, depreciation and amortization, and the franchised figure already has the royalty, brand fund and system fees inside other operating costs.
Why do company schools keep more?
Because of the fee, almost entirely. Royalty, brand fund and system fees come to $220,952 on the company schools&rsquo. 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. Nets to the 9.3-point profit difference exactly.
What does the brand take?
A royalty of 7% of net revenue collected weekly, waived for the first 12 weeks and halved to 4% for weeks 13 to 24. A brand fund contribution currently 2%, which may rise by half a point at a time to a 3% ceiling. A local advertising spend of at least $1,250 a week until net revenue in a week passes $28,000, then 2%. A centralized system fee of $1,450 a month. And a 0.5% cooperative contribution where a regional cooperative exists, credited against local advertising. At the mature franchised average that is $258,329 a year, or 11.8% of net revenue, which is marked *.
Who does bookkeeping for a Celebree School franchise?
Three things shape the close here. Royalty and brand fund are collected weekly on net revenue. So the revenue figure has to be right every week. Net revenue is billed, 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. 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, is 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?
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- 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 Finance Diagnostic 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. 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?
A structured review of your unit economics, cash forecast. Reporting, built around other operating costs split into contractual and controllable, a running local advertising tally. Weekly revenue that drives weekly fees.
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