The Goddard SchoolFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Goddard School franchise requires a total initial investment of $903K – $8.5M, including a $135K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $3.4M[2]. SBA 7(a) loans show a 3.4% charge-off rate across 538 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $903K – $8.5M
- 64th pct Education
- Avg gross sales
- $3.4M
- 45th pct Education
- Royalty
- 7.0%
- 17th pct Education
- Units
- 627
- 69th pct Education
- SBA default
- 3.4%
- system-wide median varies by category
Quick verdict · Education · color = vs category peers
Green = >15% above Education avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.7x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchising since 1988. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $903K – $8.5M including a $135K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $3.4M/year, with an estimated 11% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 47/100. SBA loan charge-off rate of 3.4% across 538 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Goddard Franchisor LLC
- Parent company
- Goddard Funding LLC
- Incorporated in
- DE
- HQ
- 1016 West Ninth Avenue, King of Prussia, PA 19406-3107
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $32.6M
- vs $100.8M prior year
Overview
About
Franchisees operate premium early childhood education centers (typically serving ages 6 weeks to pre-K), managing curriculum delivery, teacher recruitment/training, parent communication, facility operations, and regulatory compliance. Day-to-day involves childcare service delivery, enrollment marketing, staff supervision, and meeting state licensing requirements while generating revenue through monthly tuition and ancillary services.
- CEO
- Dennis R. Maple
- Headquarters
- PA
- Founded
- 1983
- FDD year
- 2024
- States available
- 38
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $135K | $135K |
| Working capital (3–6 mo) | $100K | $275K |
| Equipment, build-out, other | $668K | $8.1M |
| Total initial investment | $903K | $8.5M |
Source: The Goddard School 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$407K
12.0% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
12.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $903K – $8.5M
- Near category avg vs category
- Liquid capital req'd
- $100K – $275K
- Near category avg vs category
- Franchise fee
- $60K – $135K
- Below avg, review vs category
- Royalty
- 7.0%
- Gross Receipts · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 11.0%
- vs 9–13% typical
- Payback period
- 9.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $700 |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Total fee load | 11.0% of rev |
Financial Performance
- Avg gross sales
- $3.4M
- Per unit, per year
- Median gross sales
- N/A
- Avg ebitda
- $498K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 10.6%
- Based on EBITDA / investment midpoint
- Item 19 type
- ebitda
- Sample size
- 589 units
- vs category median 14 · large
- Range (low → high)
- $369K→$6.4M
- Cohort dispersion (min → max)
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Education averages
How The Goddard School Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 627
- Opened
- 30
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +4.8%
- Net unit change last year
- 3-yr CAGR
- +9.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 20
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 538
- Loan volume
- $999.5M
- Median loan
- $1.3M
- 50th percentile
- Charge-off rate
- 3.4%
- 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)
- 96.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 81
- Defaults
- 8
Vintage analysis
The Goddard School charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Goddard School's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 23-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Goddard School presents moderate-to-cautionary risk: high capital requirements with unprotected territory, slow growth trajectory, recent litigation involving franchisor conduct, and elevated royalty drag that may challenge profitability in underperforming locations.
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 47 / 100 rating
- 01MINORHigh initial investment range ($902.5K–$8.5M) with wide variance suggests inconsistent unit economics or market-dependent costs
- 02MINORUnprotected territory creates direct competition risk and limits franchisee exclusivity; unclear how many units can operate in same area
- 03HIGHActive litigation (Pond Road case) involving fraud/misrepresentation allegations against Goddard Manager, even if dismissed without prejudice, signals operational or disclosure concerns
- 04MINORSlow unit growth (4.8% YoY) in childcare sector suggests market saturation, franchisee underperformance, or brand stagnation relative to competitors
- 05MINORHigh royalty burden (7% of gross receipts) on average $2.28M revenue = ~$160K annual royalty, compressing net margins (currently ~22% net on gross revenue)
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 5 years |
| Territory type | County |
| Protected territory | No |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 105 hrs
- On-the-job training
- 0 hrs
- POS system
- Franchise Management System (FMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchise Management System (FMS)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Goddard School · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Goddard School franchise?
The total investment to open a The Goddard School franchise ranges from $903K – $8.5M, with an initial franchise fee of $135K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Goddard School franchise owners earn?
According to Item 19 of the The Goddard School FDD, the average gross sales per unit is $3.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Goddard School's franchise failure rate?
Based on SBA 7(a) loan data, The Goddard School has a charge-off rate of 3.4% across 538 loans, meaning 3.4% 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 The Goddard School franchise locations are there?
As of their most recent FDD filing, The Goddard School has 627 total units in the United States, including 575 franchised units and 0 company-owned units. 30 new units were opened in the latest reporting year.
Is The Goddard School a good franchise to buy?
FranchiseVerdict rates The Goddard School as a A-grade franchise with a risk score of 47 out of 100, 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.
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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.