Casa de Corazon Franchise Cost, Revenue & Review 2026
- Investment
- $916K – $4.3M
- Disclosed sales
- $2.4M
- gross sales, not profit
- SBA charge-off
- Limited · 13 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Casa de Corazon is an early education franchise operating Spanish-immersion preschools and daycare centers with organic meals. Franchisees run the schools, managing bilingual teachers, curriculum, and enrollment.
FranchiseVerdict summary · 2026
A Casa de Corazon franchise requires a total initial investment of $916K – $4.3M, including a $70K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.4M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $916K – $4.3M
- 72nd pct Education
- Avg gross sales
- $2.4M
- Incl. company outlets32nd pct Education
- Royalty
- 7.0%
- 21st pct Education
- Units
- 8
- 25th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $916K – $4.3M including a $70K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.4M/year (median $2.7M) (includes company-owned outlets).
- RISKVerdict B (Above average), verdict score 59/100 (higher is better).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Casa Franchising, LLC
- Predecessor
- Casa de Corazon, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- Natalie Standridge
- Incorporated in
- MN
- HQ
- 6301 Wayzata Blvd, St. Louis Park, MN 55416
- Auditor
- TDHCD CPAs (Stephen D. Helle et al)
- Audited financials
- Franchisor revenue
- $1.2M
- vs $832K prior year
Overview
About
- CEO
- Natalie Standridge
- Headquarters
- MN
- Founded
- 2016
- FDD year
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 1234% above the typical education franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $150K | $250K |
| Equipment, build-out, other | $696K | $3.9M |
| Total initial investment | $916K | $4.3M |
Source: Casa de Corazon 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $916K – $4.3M
- Bottom third — review vs category
- Liquid capital req'd
- $150K – $250K
- Bottom third — review vs category
- Franchise fee
- $70K – $70K
- Bottom third — review vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $705 |
| Transfer fee | $70K |
| Renewal fee | $8K |
| Inventory (initial) | $44K – $55K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 491% above the education norm.
Includes company-owned outlets
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Casa de Corazon until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$2.8M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Casa de Corazon unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $2.4M
- Per unit, per year
- Median gross sales
- $2.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 8 outlets
- vs category median 16
- Range (low → high)
- $1.2M→$3.3MCited, not corroborated — printed on page 44 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.4M/year in gross sales. Median ($2.7M) exceeds the average — distribution is bottom-heavy but most units perform well. Revenue-to-investment ratio: 0.9x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 9.0% (near the Education median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
Net unit growth of +33.3% over 3 years (1 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education medians
How Casa de Corazon Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Net growth (3-yr)
- +33.3%
- Net unit change over 3 years
- 3-yr CAGR
- +33.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 13
- Loan volume
- $16.9M
- Median loan
- $1.5M
- 50th percentile
- Charge-off rate
- Limited · 13 loans
- Limited SBA coverage: 13 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 13 loans
- 5-yr charge-off
- Limited · 13 loans
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 9.0%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- n=2,945 loans
- Jobs supported
- 308
- 2.5 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 67% went to startups / new businesses, 33% to established operators
Franchise vs independent — in child day care services, franchised businesses charge off at 5.3% vs 13.0% for independents — franchising is associated with 59% lower SBA default risk in this category.
Top lenders financing Casa de Corazon franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Casa de Corazon from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 8.97%
- Lender concentration
- 33.3%
- Job velocity
- 2.5 per $100K
- NAICS benchmark
- 2.3%
- NAICS 624410
- Jobs supported
- 308
Top SBA lendersTop lender holds 33% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Byline Bank | 3 | $5.0M | N/A |
| 2 | Platinum Bank | 2 | $4.4M | N/A |
| 3 | Frandsen Bank and Trust | 1 | $1.1M | N/A |
| 4 | Old National Bank | 1 | $350K | N/A |
| 5 | Drake Bank | 1 | $1.5M | N/A |
| 6 | First Children's Finance | 1 | $50K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MNMinnesota | 6 | 0 | -- |
| WIWisconsin | 3 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Nicholas Kamp et al v. Natalie Standridge, Casa Franchising LLC et al (Hennepin County). Kamp filed Nov 2025 seeking to void 2023 settlement agreement, alleging defamation, malicious prosecution, MN Franchise Act violations, and claiming ownership interest in franchisor. Defendants deny all allegations.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · TDHCD CPAs (Stephen D. Helle et al)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 total revenues $1,172,795 comprised of royalty fees $747,189, brand fund fees $386,181, franchise fees $24,747, technology fees $10,000, training fees $4,678. Audited by TDH&CD per Independent Auditor's Report dated March 8, 2025.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 59 / 100 verdict
- 01HIGHActive litigation by former franchisee alleging defamation, duress, and Franchise Act violations creates legal and reputational risk
- 02MINOR33.3% YoY unit growth from extremely small base (8 units) is not statistically meaningful and suggests inconsistent franchisee recruitment
- 03MINOR7% royalty on $2.4M average revenue extracts $168K annually; combined with overhead, franchisee profitability claims are unverifiable
- 04MINORLawsuit alleging settlement agreement nullification and CEO misconduct suggests potential franchisor credibility and governance issues
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 10,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Hennepin County, MN (litigation); mediation in metro area 250k+ pop not within 200 miles of Center or franchisor office |
| Jury trial waiver | Yes |
| Governing law | MN |
| Litigation count | 1 |
View Item 3 litigation summary
Nicholas Kamp et al v. Natalie Standridge, Casa Franchising LLC et al (Hennepin County). Kamp filed Nov 2025 seeking to void 2023 settlement agreement, alleging defamation, malicious prosecution, MN Franchise Act violations, and claiming ownership interest in franchisor. Defendants deny all allegations.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- Minnesota (corporate offices or specified location)
- Ongoing training
- Required
- Time to open
- 13 mo
- From signing to launch
- Site selection
- Franchisor approves site; supplier provides market analysis and site selection services at no additional charge
- Franchisor financing
- Offered
- Item 10
- POS system
- SmartCare, QuickBooks Online (Emerge)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SmartCare, QuickBooks Online (Emerge)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Casa de Corazon franchise?
The total investment to open a Casa de Corazon franchise ranges from $916K – $4.3M, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Casa de Corazon franchise owners earn?
According to Item 19 of the Casa de Corazon FDD, the average gross sales per unit is $2.4M. The median is $2.7M. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Casa de Corazon?
Casa de Corazon is franchised by Casa Franchising, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Casa de Corazon FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Casa de Corazon FDD and qualifies whose outlets they describe.
What is Casa de Corazon's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Casa de Corazon (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Casa de Corazon franchise locations are there?
As of their most recent FDD filing, Casa de Corazon has 8 total units in the United States, including 4 franchised units and 4 company-owned units. 1 new units were opened in the latest reporting year.
Is Casa de Corazon a good franchise to buy?
FranchiseVerdict rates Casa de Corazon as a B-grade franchise with a verdict score of 59 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.