The Goddard School franchise unit economics
The Goddard School franchisees run purpose-built schools that charge families tuition for early education and child care.
The Goddard School franchise at a glance
The Goddard School’s Item 19 reports 2025 revenue, operating costs and EBITDA for 620 mature schools, overall and by quartile.
The Goddard School franchisees averaged $2,507,631 of sales in 2025, with a median of $2,329,913, according to Item 19 of The Goddard School’s 2026 FDD, issued 30 April 2026. The 620 in that group are 93%* of The Goddard School’s 665 locations. Fees paid to The Goddard School come to about 11%* of sales.
- A Goddard School franchise costs $1,003,500 to $8,908,000 to open, including a $135,000 initial franchise fee, according to the brand's 2026 FDD.
- The Goddard School charges a royalty of 7% of sales, a 4% brand fund contribution and a $700 monthly technology fee.
- 44% of reporting Goddard School locations reached the average.
- The Goddard School’s 620 mature schools averaged EBITDA of 21.8% of revenue in 2025. The Goddard School’s FDD defines EBITDA as gross revenue less all school operating expenses, including payroll, rent and royalties, before interest, taxes, depreciation and amortization.
- At the average Goddard School location, wages took 40.1% and rent and space costs took 13.6% of sales.
- Work out The Goddard School's fees at your own sales with the minimum fee calculator.
These figures come from The Goddard School's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Averan The Goddard School Conversion Package →- Each extra dollar of revenue has 39.2 cents to profit. $2,217,148 of revenue and $869,256 of profit separate the top quartile from the bottom *, with wages taking 32.7 cents of that dollar and rent 8.0.
- The tenth of schools paying least for premises keeps 31.4% of sales; the tenth paying most keeps 3.0%. Building costs at 6.9% of revenue against 26.1% *, and the correlation between the two ratios is −0.69.
- Franchise fees take $284,239 a year at the average school, 52% of its profit. That is 7% royalty, 4% marketing fund and $8,400 of curriculum subscription against profit of $546,554 *.
- Twenty-five schools lost money last year and 113 kept under 10% of sales. Against 96 that kept over 30% *, on a worksheet whose lowest result is a loss of $411,723.
- A second school costs $60,000 instead of $135,000 and pays 2%, 4% then 6% royalty through its first year. That is $75,000 off the fee plus 2.5% of first-year receipts *.
How much does a Goddard School franchise make?
The average Goddard School unit reported $2,507,631 of revenue in the 2026 FDD, and the median reported $2,329,913. The brand’s disclosure document puts EBITDA at 21.8% of revenue. Fees come off the top first, at about 11% 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 Goddard School performers
The Goddard School splits its locations into groups instead of publishing one average. The top group averaged $3,739,843 a year. The lowest averaged $1,522,695. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $2,329,913. The average was $2,507,631. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 2.5× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Locations run 10,000 to 12,500 square feet. Capacity is the number of places the school's license allows, times the share of those places filled. The build sets how much you can sell.
- Opening cost range.Opening costs $1,003,500 to $8,908,000, an 8.9× range inside one brand.
- Lease cost.Occupancy cost ran 13.6% 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 40.1% of sales, against EBITDA of 21.8%. 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 13.6% 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 and the minimum.Fees run about 11.0% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
- Cash needed in the first year.This filing shows how a new location builds up: the month sales cover costs, and how much cash you fund before then.
Context you underwrite around
- Locations included.These figures cover 620 of 665 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard.
Top performers
How far apart the locations are
The Goddard School reports its locations in performance groups, from the highest-selling to the lowest. The group-by-group figures are in the tables on the Model and Finance tabs.
620 schools, rebuilt
Profit and loss by revenue quartile, 2025
| Group | Schools | Sales | Wages | Building costs | Miscellaneous | profit | margin |
|---|---|---|---|---|---|---|---|
| Top 25% | 156 | $3,739,843 | $1,367,956 (36.6%) | $439,854 (11.8%) | $896,187 (24.0%) | $1,035,846 | 27.7% |
| Second 25% | 155 | $2,641,939 | $1,026,077 (38.8%) | $333,333 (12.6%) | $718,054 (27.2%) | $564,475 | 21.4% |
| Third 25% | 155 | $2,118,097 | $834,819 (39.4%) | $281,177 (13.3%) | $585,954 (27.7%) | $416,147 | 19.6% |
| Bottom 25% | 155 | $1,522,695 | $643,618 (42.3%) | $263,504 (17.3%) | $448,983 (29.5%) | $166,590 | 10.9% |
| All, as the brand reported it | 620 | $2,507,631 | $968,761 (40.1%) | $329,645 (13.6%) | $662,671 (27.4%) | $546,554 | 21.8% |
| Median, as the brand reported it | n/a | $2,329,913 | $921,350 (40.6%) | $309,479 (13.6%) | $625,695 (27.6%) | $474,693 | 20.9% |
| Range, as the brand reported it | n/a | $716,896–$6,594,330 | n/a | n/a | n/a | n/a | n/a |
The last three rows are as the brand reported it; the quarter rows are marked *, rebuilt from the filed school-by-school worksheet.
| Outcome | Schools | Share |
|---|---|---|
| profit below zero | 25 | 4.0% |
| profit under 10% of revenue | 113 | 18.2% |
| profit over 30% of revenue | 96 | 15.5% |
| Reaching the filed average revenue of $2,507,631 | 271 | 43.6% |
| Reaching the filed average profit of $546,554 | 260 | 41.9% |
| Lowest result | −$411,723 | n/a |
We calculated these from the rebuilt worksheet.
Thirty-nine cents of every extra revenue dollar reaches the profit line *. That holds across the $2,217,148 that separates the top quartile from the bottom. Wages take 32.7 cents of it, miscellaneous 20.2 and rent 8.0.
Wages fall from 42.3% of sales to 36.6% as revenue rises. A school at $1,522,695 spends $643,618 on staff and one at $3,739,843 spends $1,367,956, 2.1 times the wages on 2.5 times the revenue. Licensed ratios set the minimum, and volume is what dilutes it.
Ninety-six schools keep over 30% of sales and 25 keep less than zero. *. The same brand, the same curriculum and the same fee schedule produce a range from a $411,723 loss to results above 30%. That is what makes the building and the roster the whole argument.
Under 44% of schools reach the system average. That is 270 of 620, as the brand reported it. The median school bills $2,329,913 against an average of $2,507,631, 93%. So the average is pulled by a top quartile running to $6,594,330.
What the occupancy cost
Results by occupancy cost, 2025
| Group | Schools | Building costs as a share of revenue | Average revenue | margin |
|---|---|---|---|---|
| Lowest occupancy cost tenth | 62 | 6.9% | $3,090,122 | 31.4% |
| All 620 schools | 620 | 13.6% | $2,507,631 | 21.8% |
| Highest occupancy cost tenth | 62 | 26.1% | $1,719,815 | 3.0% |
We ranked every school in the rebuilt worksheet by occupancy cost as a share of its own revenue and took the top and bottom tenths.
The tenth of schools paying least for premises keeps ten times the margin of the tenth paying most. That is 31.4% against 3.0% *. They also bill 80% more.
Rent rises $176,350 between the bottom and top quartiles while revenue rises $2,217,148. *. A building sized for 10,000 to 12,500 square feet costs roughly what it costs, and filling it is what changes the ratio from 17.3% to 11.8%.
Building cost predicts the profit line better than revenue does. That is a correlation of −0.69 against +0.55 *. For an owner weighing a renewal or a second site, the rent per square foot is a more reliable forecast than the market's population.
Wages share has a larger correlation with profit, at −0.72. Its correlation is −0.72 *. Staffing ratios are set by license, so the schools holding wages near 36.6% are doing it with occupancy cost. The full classrooms have the same teachers further.
Fees and what it costs to open
Royalty and brand charges
| Level | total sales | Royalty at 7% | Marketing fund at 4% | Curriculum subscription | Total | Share of receipts |
|---|---|---|---|---|---|---|
| Highest school | $6,594,330 | $461,603 | $263,773 | $8,400 | $733,776 | 11.1% |
| Top quartile | $3,739,843 | $261,789 | $149,594 | $8,400 | $419,783 | 11.2% |
| System average | $2,507,631 | $175,534 | $100,305 | $8,400 | $284,239 | 11.3% |
| Bottom quartile | $1,522,695 | $106,589 | $60,908 | $8,400 | $175,896 | 11.6% |
| Lowest school | $716,896 | $50,183 | $28,676 | $8,400 | $87,259 | 12.2% |
We applied the published rates to rebuilt revenue.
| Item | Low | High |
|---|---|---|
| Furniture, fixtures and equipment | $243,000 | $307,000 |
| Playground equipment | $140,000 | $240,000 |
| Initial license fee | $135,000 | $135,000 |
| Miscellaneous opening costs | $120,000 | $135,000 |
| Additional funds, three months | $100,000 | $275,000 |
| Initial marketing fee | $55,000 | $75,000 |
| Security system | $45,000 | $45,000 |
| Initial training and opening support | $35,000 | $42,000 |
| Site development fee | $35,000 | $35,000 |
| Signs | $28,000 | $28,000 |
| Computer, network, telephone and digital signage | $26,000 | $40,000 |
| Lease deposit | $25,000 | $50,000 |
| Marketing materials and curricular resources | $15,000 | $15,000 |
| Background checks | $1,500 | $6,000 |
| Project management fee | $0 | $75,000 |
| Total | $1,003,500 | $1,503,000 |
As the brand reported it, reordered here by size; both columns add to their stated totals exactly *.
Franchise fees take 52% of the average school's profit. That is $284,239 against profit of $546,554 *. It is 11.3% of receipts, and because the curriculum subscription is flat it costs the lowest-selling school 12.2% and the highest-selling 11.1%.
Brand charges are 43% of the whole miscellaneous line. That is $284,239 of $662,671 *. The other 57% covers utilities, payroll taxes, repairs, supplies, snacks, technology, insurance and professional fees. So the line an owner can actually influence is closer to $378,000 than to $663,000.
The low-end build costs $1,003,500 and repays in 1.8 years at the average profit line. *. At the top quarter's $1,035,846 it repays inside a year, and at the bottom quarter's $166,590 it takes six.
A second school saves $75,000 on the fee and 2.5% of first-year receipts. That is $60,000 against $135,000, with royalty stepping 2%, 4% then 6% across the first twelve months *. The saving is repayable if the school changes hands inside two years.
New schools
Results for new schools by opening quarter, 2025
| Opened | Schools | Average revenue | Average profit | Margin |
|---|---|---|---|---|
| Second quarter 2024 | 2 | $3,165,950 | $883,252 | 27.9% |
| Third quarter 2024 | 4 | $2,352,632 | $459,710 | 19.5% |
| Fourth quarter 2024 | 6 | $2,078,415 | $184,713 | 8.9% |
| First quarter 2025 | 6 | $1,266,541 | $5,882 | 0.5% |
| Third quarter 2025 | 7 | $402,816 | $1,039 | 0.3% |
| Fourth quarter 2025 | 6 | $109,543 | −$46,171 | −42.1% |
| All 31 published | 31 | $1,267,391 | $144,489 | 11.4% |
We rebuilt these from the new-school worksheet.
A school opened in mid-2024 was already running at 27.9% by 2025. That is $3,165,950 of revenue on two schools *, above the mature system average of $2,507,631 and its 21.8% margin. Two schools is far too small a group to rely on, and it is the only sign available of how fast a site in high demand fills.
The fourth-quarter 2024 group reached $2,078,415 and 8.9%. That group is six schools, roughly 14 months old *. They are at 83% of the mature average revenue and 41% of its margin. That is the shape of the build-up. Volume arrives first and margin follows.
Fourteen of 31 new schools lost money at profit *. Almost all of them opened during 2025. A school opening in the fourth quarter shows a full year of set-up against a quarter of fees. That is what produces the −42.1% at that group.
The system added 24 schools in 2025 and lost one. That is 642 to 665, with zero terminations across three years and 51 agreements signed and unopened. Sixty-five schools changed hands over the same period.
Questions we get asked
Questions owners ask.
How much does The Goddard School franchise make?
The Goddard School franchisees averaged $2,507,631 of sales in 2025, with a median of $2,329,913, according to Item 19 of The Goddard School’s 2026 FDD, issued 30 April 2026. The 620 in that group are 93%* of The Goddard School’s 665 locations. Fees paid to The Goddard School come to about 11%* of sales.
What should a Goddard School be billing at The Goddard School?
Across mature schools open more than 18 months, sales averaged $2,507,631 with a median of $2,329,913, ranging from $716,896 to $6,594,330. 270 of the 620 reached the average. Rebuilding the published worksheet gives quartile averages of $3,739,843, $2,641,939, $2,118,097 and $1,522,695, which is marked *.
What is left after costs at The Goddard School?
Goddard School profit averaged $546,554, or 21.8% of revenue, with a median of $474,693 at 20.9%. Wages took 40.1%, occupancy cost 13.6% and miscellaneous items 27.4%. By quartile the margin runs 27.7%, 21.4%, 19.6% and 10.9%, which is marked *. Twenty-five schools finished below zero, 113 kept under 10% and 96 kept over 30%. Profit here excludes interest, taxes, depreciation and amortization, and before rent the same figure is 34.9%.
How much does the building matter at The Goddard School?
Building costs move the margin more than anything else. Rank every school by occupancy cost as a share of its own revenue and the lowest tenth pays 6.9% and keeps 31.4% of sales while the highest tenth pays 26.1% and keeps 3.0%, both marked *. The correlation between occupancy cost share and profit share across all 620 schools is minus 0.69, against plus 0.55 for revenue itself. In dollars, rent rises only $176,350 between the bottom and top revenue quartiles while revenue rises $2,217,148. So the ratio falls from 17.3% to 11.8% on volume alone.
What fees does The Goddard School charge?
The royalty is 7% of total sales, drawn electronically on the third business day of each month. A marketing fund fee of 4% of total sales, which the franchisor may charge at a lesser rate for a period without waiving the full rate. The Goddard School charges a proprietary curriculum subscription of $700 a month plus taxes. Local advertising is a further obligation at the franchisee's own cost. Together that is $284,239 a year at the average school, 11.3% of receipts and 52% of its profit, both marked *. An existing franchisee opening an additional school pays $60,000 against $135,000 and a royalty of 2%, 4% then 6% across the first year.
Who does bookkeeping for a Goddard School franchise at The Goddard School?
Three things shape the close here. Royalty and marketing fee are withdrawn electronically on the third business day on reported receipts. A late report lets the franchisor estimate receipts and withdraw its own estimate. So the monthly revenue report is a cash control. Second, the whole margin turns on occupancy cost as a share of revenue. So rent, common area charges and property tax belong in one line tracked monthly against sales. Third, the miscellaneous line at 27.4% of revenue has the brand charges at 42.9% of it. That is marked *, alongside utilities, payroll taxes, repairs, supplies and professional fees, splitting the controllable part from the contractual part is what makes that line usable. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
Questions worth putting to The Goddard 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 The Goddard 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 Goddard 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. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Where does your school sit in the 620 at The Goddard School?
We review your unit economics and cash forecast and build your reporting around occupancy cost as a share of revenue, wages against licensed ratios. A miscellaneous line split into contractual and controllable.
Talk to AveranWhere these figures come from.
Every figure here comes from Goddard Franchisor 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. The Goddard 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: Goddard Franchisor LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.
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The Goddard School reads against the rest of the early education and child care group: Celebree School · Kiddie Academy · Lightbridge Academy · Primrose Schools · Soccer Shots · 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.