Creative World School Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Creative World School is an early childhood education franchise offering preschool and childcare with an enrichment-based curriculum. Franchisees run the centers, managing teachers, enrollment, and licensing compliance.
FranchiseVerdict summary · 2026
A Creative World School franchise requires a total initial investment of $5.8M – $10.1M, including a $80K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.5M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 23 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $5.8M – $10.1M
- 79th pct Education
- Avg gross sales
- $2.5M
- Outlet subset33rd pct Education
- Royalty
- 5.0%
- 2nd pct Education
- Units
- 29
- 47th 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 avg · 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 $5.8M – $10.1M including a $80K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.5M/year (median $2.5M) (reported for a subset of outlets rather than the whole system), with an estimated 5% cash-on-cash return (based on Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR)).
- RISKVerdict A (Strongest tier), verdict score 80/100 (higher is better). SBA loan charge-off rate of 0.0% across 23 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Creative World Schools Franchising Company, Inc.
- Parent company
- None
- CEO title
- CEO, President, Director and Certified Training Instructor
- Dr. Marianne Whitehouse
- CEO experience
- 1999 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- FL
- HQ
- 25110 Bernwood Drive, Suite #104, Bonita Springs, Florida 34135
- Auditor
- Hill, Barth & King LLC
- Audited financials
- Franchisor revenue
- $4.1M
- vs $3.8M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Dr. Marianne Whitehouse
- Headquarters
- FL
- Founded
- 1999
- FDD year
- 2025
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 1100% 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 | $80K | $80K |
| Working capital (3–6 mo) | $25K | $150K |
| Equipment, build-out, other | $5.7M | $9.9M |
| Total initial investment | $5.8M | $10.1M |
Source: Creative World School 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
- $5.8M – $10.1M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $150K
- Middle of category vs category
- Franchise fee
- $80K – $80K
- Bottom third — review vs category
- Royalty
- 5.0%
- tiered · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 20.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $350 |
| Training fee | $1K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 219% above the education norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
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
$433K
17.0% margin
Unlevered ROIC
5%
EBITDA / total invested capital
Payback
18.6 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $708K as Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR). Our model estimates $433K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR) deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Creative World School unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
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%.
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
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
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $2.5M
- Per unit, per year
- Median gross sales
- $2.5M
- Avg net income before interest, taxes, depreciation, amortization, and rent (ebitdar)
- $708K
- Reported as Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR) in FDD Item 19
- Cash-on-cash
- 4.9%
- Based on Net Income Before Interest, Taxes, Depreciation, Amortization, and Rent (EBITDAR) / investment midpoint
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 Revenues + Average Income and Expense tables (EBITDAR)
- Sample size
- 13 outlets
- vs category median 17
- Range (low → high)
- $1.3M→$3.5M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 204 Education brands
Revenue is only 0.3x 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 $2.5M/year in gross sales. Revenue-to-investment ratio: 0.3x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 6.0% — below the Education average of 10.6%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (0.0% 3-year CAGR) with 29 units.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How Creative World School Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 29
- 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
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 83%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +8.7%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 3.4%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 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.
6
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 23
- Loan volume
- $40.6M
- Median loan
- $254K
- 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
- 6
- Defaults
- 0
- Typical loan rate
- 6.7%
- avg rate to borrowers
- Franchised industry avg
- 5.3%
- brand beats franchise avg ↓
- Jobs supported
- 248
- 1.4 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 75% went to startups / new businesses, 25% 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 Creative World School franchisees
Showing 3 of 6 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.
Premium insight
SBA Lending Report
Deep-dive into Creative World School's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 4 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 23 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
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.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $350,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Hill, Barth & King LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 80 / 100 verdict
- 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
- 04MINORWide 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
What are you signing up for?
Ongoing fees run about 6.0% 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 | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 3 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Franchisor headquarters (Bonita Springs/Lee County, Florida) |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 104 hrs
- On-the-job training
- 96 hrs
- Training location
- One of our locations in Florida; your School or another School/training facility for Employee Training
- Ongoing training
- Required
- Time to open
- 14 mo
- From signing to launch
- Site selection
- Franchisor must approve site; provides site selection criteria
- Franchisor financing
- Offered
- Item 10
- POS system
- ProCare
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ProCare
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Creative World School · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Creative World School franchise?
The total investment to open a Creative World School franchise ranges from $5.8M – $10.1M, with an initial franchise fee of $80K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Creative World School franchise owners earn?
According to Item 19 of the Creative World School FDD, the average gross sales per unit is $2.5M. The median is $2.5M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Creative World 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 Creative World School FDD and qualifies whose outlets they describe.
What is Creative World School's franchise failure rate?
Based on SBA 7(a) loan data, Creative World School has a charge-off rate of 0.0% across 23 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 Creative World School franchise locations are there?
As of their most recent FDD filing, Creative World School has 29 total units in the United States, including 24 franchised units and 5 company-owned units. 1 new units were opened in the latest reporting year.
Is Creative World School a good franchise to buy?
FranchiseVerdict rates Creative World School as a A-grade franchise with a verdict score of 80 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Creative World School, you can request corrections or provide updated information.
Other Education franchises
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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.