The New Mom School
Bottom line
- Total investment $126K – $203K including a $45K franchise fee.
- Average unit revenue of $507K/year (median $507K). Estimated payback in 0.8 years.
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 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
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 New Mom School unit return on the cash you put in?
Unlevered ROIC · per unit
42%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The New Mom School units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$812K
on $4.1M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
Overview
About
The New Mom School appears to be an educational or coaching service targeting new mothers, likely delivering parenting guidance, wellness, or childcare curriculum through in-person or online channels. Franchisees likely manage day-to-day client enrollment, program delivery, instructor coordination, and community relationship building.
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 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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
The New Mom School presents significant caution-level risk due to a micro-scale system (2 units only), unverified financial claims, aggressive royalty escalation, and absence of disclosed growth or expansion strategy.
Score breakdown · what drove the 55 / 100 rating
- 01MEDExtremely limited unit count (only 2 franchises) indicates unproven scalability and system maturity
- 02MEDNo disclosed unit growth history or expansion trajectory despite 10-year franchise model
- 03MINORHigh financial performance claims ($507k avg revenue, $204k avg net income) based on only 2 units — statistically unreliable and potential cherry-picking
- 04MINORRoyalty structure escalates to $3,000/month minimum by year 3, creating fixed-cost burden regardless of sales performance
- 05MINORFranchise fee of $45,000 represents 8.9% of average net income — aggressive cost recovery for unproven system
- 06MINORNo Item 19 Financial Performance Representations provided — claims cannot be independently verified
- 07MEDUnknown/undisclosed growth indicates either brand is stagnant or new to franchising
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
The New Mom School · FDD (2025) PDF