Celebree School
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). Estimated payback in 7.2 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 86 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Celebree School unit return on the cash you put in?
Unlevered ROIC · per unit
11%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Celebree School units return on equity?
Equity IRR · 5-yr
40.3%
5.44× MOIC
Year-1 DSCR
2.11×
EBITDA ÷ debt service
Equity required
$3.5M
on $12.1M purchase
Total debt
$8.6M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 44 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
69 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Celebree School · FDD (2024) PDF