Celebree School Franchise Cost, Revenue & Review 2026
- Investment
- $1.0M – $1.4M
- Disclosed sales
- $2.2M
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 40 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Celebree School is an early childhood education and childcare franchise serving infants through school-age kids. Franchisees run the centers, managing teachers, curriculum, enrollment, and licensing compliance.
FranchiseVerdict summary · 2026
A Celebree School franchise requires a total initial investment of $1.0M – $1.4M, including a $75K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.2M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 40 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
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 scored6 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.0M – $1.4M
- 75th pct Education
- Avg gross sales
- $2.2M
- Net sales31st pct Education
- Royalty
- 7.0%
- 21st pct Education
- Units
- 72
- 59th pct Education
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
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 $1.0M – $1.4M including a $75K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.2M/year (median $2.3M).
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 0.0% across 40 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +15 franchised outlets in the latest year (16 opened, 1 closed); 63 signed but not yet open (Item 20).
- GROWTHSystem growing at 120.0% CAGR over 3 years with 72 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Celebree Enterprises, LLC
- CEO title
- Chief Executive Officer and Director
- Richard Huffman
- Incorporated in
- MD
- HQ
- 8029 Corporate Drive, Nottingham, Maryland 21236
- Auditor
- EisnerAmper LLP
- Audited financials
- Franchisor revenue
- $5.1M
- vs $2.8M prior year
Overview
About
- CEO
- Richard Huffman
- Headquarters
- MD
- Founded
- 2018
- FDD year
- 2026
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 525% above the typical education franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $125K | $200K |
| Equipment, build-out, other | $824K | $1.1M |
| Total initial investment | $1.0M | $1.4M |
Source: Celebree School 2026 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
- $1.0M – $1.4M
- Bottom third — review vs category
- Liquid capital req'd
- $125K – $200K
- Bottom third — review vs category
- Franchise fee
- $75K – $75K
- 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 net sales |
| Marketing / ad fund | 2.0% of net sales |
| Technology fee | $1K |
| Training fee | $30K |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $19K – $25K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 437% above the education norm.
Reported as net sales, not gross sales
Source: FDD 2026 · 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 Celebree School 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
$1.4M
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 Celebree School 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: 2026 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $2.2M
- Per unit, per year
- Median gross sales
- $2.3M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- net sales
- Sample size
- 18 outlets
- vs category median 16
- Range (low → high)
- $995K→$3.9MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
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 $2.2M/year in gross sales. Revenue-to-investment ratio: 1.8x.
Fee burden
Total ongoing fee load of 9.0% (near the Education median).
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 120.0% CAGR over 3 years across 72 units — operators are staying and new ones are joining.
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 Celebree School 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 72
- Opened
- 16
- Last reporting year
- Closed
- 1
- Turnover rate
- 1.4%
- Company-owned
- 28
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Net growth (3-yr)
- +120.0%
- Net unit change over 3 years
- 3-yr CAGR
- +120.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 63
- 0.88 per open outlet · Item 20 Table 5
- Projected new
- 12
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
70 current owners across 16 states.
- MD 13
- TX 12
- VA 12
- NJ 7
- PA 7
- FL 5
- GA 3
- NC 3
- DE 1
- IL 1
- KY 1
- MA 1
- +4 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 40 loans · 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
- Typical loan rate
- 8.2%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- brand beats franchise avg ↓
- Jobs supported
- 1,093
- 1.4 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 95% went to startups / new businesses, 5% 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 Celebree School franchisees
Showing 3 of 12 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 Celebree School from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 8.18%
- Lender concentration
- 32.5%
- Job velocity
- 1.4 per $100K
- NAICS benchmark
- 2.3%
- NAICS 624410
- Jobs supported
- 1,093
Top SBA lendersTop lender holds 33% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Bank of the Lake | 13 | $22.3M | 0.0% |
| 2 | The Bancorp Bank National Association | 9 | $22.7M | N/A |
| 3 | Manufacturers and Traders Trust Company | 3 | $2.7M | 0.0% |
| 4 | Atlantic Union Bank | 3 | $4.4M | 0.0% |
| 5 | Texas Capital Bank | 3 | $5.2M | N/A |
| 6 | Pinnacle Bank | 2 | $7.2M | N/A |
| 7 | Wilmington Savings Fund Society FSB | 2 | $2.1M | N/A |
| 8 | Celtic Bank Corporation | 1 | $2.7M | N/A |
| 9 | Community Bank & Trust-West Georgia | 1 | $3.0M | N/A |
| 10 | JPMorgan Chase Bank, National Association | 1 | $400K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MDMaryland | 9 | 0 | 0.0% |
| PAPennsylvania | 8 | 0 | 0.0% |
| TXTexas | 7 | 0 | -- |
| VAVirginia | 5 | 0 | -- |
| FLFlorida | 3 | 0 | -- |
| GAGeorgia | 3 | 0 | -- |
| SCSouth Carolina | 2 | 0 | 0.0% |
| MAMassachusetts | 1 | 0 | -- |
| NJNew Jersey | 1 | 0 | -- |
| TNTennessee | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 40 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Rapid expansion with unvalidated unit economics and limited financial transparency creates execution risk despite absence of litigation.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · EisnerAmper LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited statements for Celebree Enterprises, LLC, FY ended Dec 31, 2024 (yr1) and 2023 (yr2). Total revenues comprise royalty fees, franchise fees, site selection assistance fees, training and opening support fees, centralized system fees, brand fund fees. Company reports a member's deficit (negative net worth).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 79 / 100 verdict
- 01MINORExplosive 53.8% YoY unit growth suggests rapid expansion that may outpace operational support infrastructure and quality control
- 02MINORNet income margin of 15.4% is modest for a childcare/education franchise requiring significant labor and facility costs
- 03MEDRelatively 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 4 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 39 hrs
- On-the-job training
- 40 hrs
- Training location
- Online, Nottingham Maryland office, and a Celebree School chosen by franchisor
- Ongoing training
- Required
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- 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
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 $1.0M – $1.4M, 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 $2.2M. The median is $2.3M. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Celebree School?
Celebree School is franchised by Celebree Enterprises, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Celebree School 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 Celebree School FDD and qualifies whose outlets they describe.
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 72 total units in the United States, including 44 franchised units and 28 company-owned units. 16 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 verdict score of 79 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
Are you the franchisor?
If you represent Celebree School, you can request corrections or provide updated information.
Other Education franchises
Compare similar franchise opportunities in the Education category
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.