Celebree SchoolFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Celebree School franchise requires a total initial investment of $838K – $3.0M, including a $75K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.7M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 40 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $838K – $3.0M
- 63rd pct Education
- Avg gross sales
- $1.7M
- 38th pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 46
- 47th pct Education
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 40 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 26 to 20 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $838K – $3.0M including a $75K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.7M/year (median $1.6M), with an estimated 14% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 21/100. SBA loan charge-off rate of 0.0% across 40 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 566.7% CAGR over 3 years with 46 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Celebree Enterprises, LLC
- Incorporated in
- MD
- HQ
- 8029 Corporate Drive, Nottingham, Maryland 21236
- Auditor
- EisnerAmper LLP
- Audited financials
- Franchisor revenue
- $1.2M
- vs $2.8M prior year
Overview
About
Celebree School franchisees operate early childhood education and care centers serving infants through preschool-age children. Daily operations include classroom instruction, curriculum implementation, staff management, parent communication, facility maintenance, and regulatory compliance with childcare licensing standards. Revenue derives from tuition fees, with potential ancillary services like extended hours or summer camps.
- CEO
- Richard Huffman
- Headquarters
- MD
- Founded
- 2018
- FDD year
- 2024
- States available
- 4
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $175K | $250K |
| Equipment, build-out, other | $588K | $2.7M |
| Total initial investment | $838K | $3.0M |
Source: Celebree School 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$242K
14.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
8.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $838K – $3.0M
- Near category avg vs category
- Liquid capital req'd
- $175K – $250K
- Near category avg vs category
- Franchise fee
- $75K – $75K
- Near category avg vs category
- Royalty
- 7.0%
- Net Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 7.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- $1.6M
- Avg p&l bottom line
- $266K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 13.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Average for 13 franchised schools
- Sample size
- 13 units
- vs category median 14
- Range (low → high)
- $820K→$3.7M
- Cohort dispersion (min → max)
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 237 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.
vs Education averages
How Celebree School Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 46
- Opened
- 7
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 26
- Corporate units in the system
- % franchised
- 44%
- vs corporate-owned
- Net growth (yr3)
- +53.8%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
- 40
- Loan volume
- $75.3M
- Median loan
- $1.7M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Celebree School's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 40 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid expansion with unvalidated unit economics and limited financial transparency creates execution risk despite absence of litigation.
Audited financials (Item 21)
Yes · EisnerAmper LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 21 / 100 rating
- 01MINORExplosive 53.8% YoY unit growth suggests rapid expansion that may outpace operational support infrastructure and quality control
- 02MEDWide investment range ($838k-$3.0M) with 258% spread indicates high variability in startup costs and potential hidden expenses not disclosed
- 03MINORNet income margin of 15.4% is modest for a childcare/education franchise requiring significant labor and facility costs
- 04MINORNo Item 19 financial performance representations (going_concern: False) limits ability to validate franchisor claims about profitability
- 05MEDRelatively small franchisee base (46 units) offers limited peer network for troubleshooting and reduces bargaining power with franchisor
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 38 hrs
- On-the-job training
- 40 hrs
- POS system
- DayCare Works
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DayCare Works
Item 20 · call current owners
Franchisee Contacts
70 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Celebree School · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Celebree School franchise?
The total investment to open a Celebree School franchise ranges from $838K – $3.0M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Celebree School franchise owners earn?
According to Item 19 of the Celebree School FDD, the average gross sales per unit is $1.7M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Celebree School's franchise failure rate?
Based on SBA 7(a) loan data, Celebree School has a charge-off rate of 0.0% across 40 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Celebree School franchise locations are there?
As of their most recent FDD filing, Celebree School has 46 total units in the United States, including 26 franchised units and 26 company-owned units. 7 new units were opened in the latest reporting year.
Is Celebree School a good franchise to buy?
FranchiseVerdict rates Celebree School as a A-grade franchise with a risk score of 21 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.