Creative World School
Bottom line
- Total investment $5.8M – $10.1M including a $80K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.5M/year (median $2.5M). Estimated payback in 11.2 years.
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Creative World School unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Creative World School units return on equity?
Equity IRR · 5-yr
27.0%
3.31× MOIC
Year-1 DSCR
3.03×
EBITDA ÷ debt service
Equity required
$12.8M
on $25.5M purchase
Total debt
$12.6M
SBA $5.0M + senior + seller note
Overview
About
Creative World School franchisees operate early childhood education centers (preschool/pre-K) offering curriculum-based childcare, parent engagement programs, and enrichment activities (arts, STEM, language). Day-to-day responsibilities include staffing/hiring, regulatory compliance (child safety, teacher licensing), parent communication, facility management, and revenue generation through tuition collection.
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 · 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 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
Creative World School presents moderate-to-cautionary risk: corporate going concern issues, stagnant growth, unverified financials, and capital-intensive model with extended ROI timelines warrant thorough franchisee financial validation.
Score breakdown · what drove the 59 / 100 rating
- 01HIGHGoing Concern issue flagged — indicates potential financial instability at corporate level despite disclosed profitability
- 02MINORAnemic unit growth of 4.3% YoY with only 29 locations suggests weak system expansion and franchisee recruitment challenges
- 03MINORHigh investment ceiling ($10.1M) paired with modest average net income ($708K) yields 7-10 year payback horizon under ideal conditions
- 04MEDNo Item 19 (Financial Performance Representation) disclosed — cannot independently verify the $2.5M revenue and $708K net income claims
- 05MINORWide royalty band (5-7%) and 'Adjusted Gross Revenues' definition may obscure actual take-home profitability
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Creative World School · FDD (2025) PDF