FranchiseVerdict
The Knight School logo
FV-02664·STRONGExcellent91

The Knight School

Education - Tutoring & Test PrepFranchising since 2024Website
Investment
$41K – $99K
12th pct Tutoring & Te…
Avg revenue
$282K
8th pct Tutoring & Te…
Royalty
Units
28
53rd pct Tutoring & Te…
SBA default

Bottom line

  • Total investment $41K – $99K including a $35K franchise fee.
  • Average unit revenue of $282K/year (median $225K).
  • Rated STRONG with a risk score of 47/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
The Knight School Franchising, LLC
Incorporated in
Alabama
HQ
2612 Vestavia Forest Terrace, Birmingham, Alabama 35216
Auditor
Metwally CPA PLLC
Audited financials
Franchisor revenue
$0
Most recent fiscal year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

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 The Knight School unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $281,895
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $41K–$99K
Working capital
$
FDD reports $2K–$47K

Unlevered ROIC · per unit

45%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$42K
EBITDA margin
15.0%
Total invested
$95K
Payback
27 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 The Knight School units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$451K

on $2.3M purchase

Total debt

$1.8M

SBA $1.1M + senior + seller note

Overview

About

The Knight School franchisees operate youth-focused educational or martial arts programs (typical for 'Knight' branding). Day-to-day operations include instruction/coaching, student enrollment management, facility maintenance, staff supervision, and parent communication. Revenue streams are likely class fees, memberships, or program tuition.

CEO
David Brooks, Ph.D.
Founded
2024
FDD year
2025
States available
15

Item 7 · what it costs

The Vitals

Total investment
$41K – $99K
All-in to open one unit
Liquid capital
$2K – $47K
Cash you must have on hand
Franchise fee
$35K
Royalty
Up to 15% of Gross Revenues
Ad fund
2.0%
typical 3–5%
Total fee load
18.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$282K
Per unit, per year
Median gross sales
$225K
Item 19 type
Gross Revenue
Sample size
23 units
vs category median 12
Range (low → high)
$1$972K
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank8th
vs Education - Tutoring & Test Prep peers
Investment cost rank12th
Lower investment ranks lower (better)
Royalty rate rank65th
Lower royalty = lower percentile (better)
Unit count rank53th
vs Education - Tutoring & Test Prep peers
Risk score rank19th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
28
Opened
6
Last reporting year
Closed
2
Turnover rate
7.1%
Company-owned
2
Corporate units in the system
% franchised
93%
vs corporate-owned
Net growth (yr3)
+18.2%
Net unit change last year
3-yr CAGR
+62.5%
Compounded over last 3 years
2023
26+4
Franchised units
2024
22
Franchised units
2025
16
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 16 states
Not registered

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.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

47
Risk · 0-100
STRONG47 / 100

The Knight School presents moderate-to-elevated risk due to undisclosed profitability metrics, high royalty burden, small system size, and lack of earnings disclosure despite reasonable revenue figures.

Score breakdown · what drove the 47 / 100 rating

  1. 01MEDNet income not disclosed — unable to assess actual profitability despite $281,895 average revenue
  2. 02MINORHigh royalty rate up to 15% combined with $35,000 franchise fee creates significant ongoing cost burden
  3. 03MINORSmall franchise system (28 units) with modest 18.2% YoY growth raises questions about scalability and brand recognition
  4. 04MINORWide investment range ($41,400–$98,990) suggests inconsistent startup costs or undefined scope
  5. 05MINORNo Item 19 financial performance representation limits transparency on realistic earnings expectations

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Zip Codes
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Alabama

Item 11

Training & Operations

Classroom training
14 hrs
On-the-job training
7 hrs
POS system
QuickBooks
Operating tech stack

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

19 numbers

Locked
(401) 277-••••
Director of Depart. of Business Regulation Suite
RI
(213) 736-••••
CA
(980) 585-••••
NC

One-time purchase · CSV download · Validation questions included

FDD download

The Knight School · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above