LeafSpring School
Bottom line
- Total investment $979K – $9.4M including a $88K franchise fee.
- Average unit revenue of $3.5M/year (median $3.9M). Estimated payback in 9.9 years.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 4 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 LeafSpring 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 LeafSpring School units return on equity?
Equity IRR · 5-yr
24.8%
3.03× MOIC
Year-1 DSCR
3.41×
EBITDA ÷ debt service
Equity required
$19.8M
on $35.4M purchase
Total debt
$15.6M
SBA $5.0M + senior + seller note
Overview
About
LeafSpring School franchisees operate private educational institutions serving K-12 students, managing curriculum delivery, staff hiring/training, facility operations, and enrollment marketing. Day-to-day responsibilities include overseeing classroom instruction, parent communication, financial management, and compliance with state education regulations.
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 · 5 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
Contracting franchise system with declining unit count, unclear cost drivers, and thin profit margins warrants caution despite no litigation.
Score breakdown · what drove the 65 / 100 rating
- 01MINORUnit count declining 7.7% YoY (13 total units) indicates contracting system and potential market saturation or operational issues
- 02MINORWide investment range ($978K–$9.4M) suggests highly variable unit economics and unclear cost structure across territories
- 03HIGHNo going concern statement despite declining unit base raises questions about franchisor financial stability and long-term viability
- 04MINORRoyalty structure front-loaded with 0% Year 1 then jumps to 6% suggests potential cash flow pressure for franchisees in years 4+
- 05MEDAverage net income of $525K on $3.54M revenue (14.8% margin) is thin for education sector and leaves limited buffer for underperformance
- 06MEDMissing Item 19 (Financial Performance Representations) prevents validation of average unit economics claims
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
LeafSpring School · FDD (2025) PDF