Village East GiftedFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Village East Gifted franchise requires a total initial investment of $33K – $168K, including a $25K franchise fee and an ongoing 8.5% royalty[2]. Per the 2022 FDD, average unit revenue was $116K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $33K – $168K
- 3rd pct Education
- Avg gross sales
- $116K
- 2nd pct Education
- Royalty
- 8.5%
- 42nd pct Education
- Units
- 2
- 8th pct Education
- SBA default
- N/A
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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
24% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $33K – $168K including a $25K franchise fee, 8.5% ongoing royalty.
- Average unit revenue of $116K/year, with an estimated 24% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 51/100.
- Auditor disclosed a going-concern note, which 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
- Village East Gifted Franchise Inc
- CEO title
- Founder
- Tobi J. Phillips
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NY
- HQ
- 12 Doti Court, Huntington, New York 11743
- Auditor
- Barry Knepper, CPA
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
Overview
About
Village East Gifted franchisees operate gifted education and enrichment centers, likely offering tutoring, test prep, and academic programs for advanced learners. Day-to-day operations include student instruction, parent communication, curriculum delivery, and staff management in a storefront or classroom setting.
- CEO
- Tobi J. Phillips
- Headquarters
- NY
- Founded
- 2019
- FDD year
- 2022
- States available
- 1
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $0 | $10K |
| Equipment, build-out, other | $9K | $134K |
| Total initial investment | $33K | $168K |
Source: Village East Gifted 2022 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
$16K
13.5% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $33K – $168K
- Better than avg vs category
- Liquid capital req'd
- $0 – $10K
- Better than avg vs category
- Franchise fee
- $19K – $25K
- Better than avg vs category
- Royalty
- 8.5%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.5%
- vs 9–13% typical
- Payback period
- 4.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $250 |
| Transfer fee | $12K |
| Renewal fee | $0 |
| Total fee load | 9.5% of rev |
Financial Performance
- Avg gross sales
- $116K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $25K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 24.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Profit and Loss
- Sample size
- 2 units
- vs category median 14 · small
- Reporting year
- 2020
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Village East Gifted Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- 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
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extreme early-stage franchise with insufficient unit base for validation, unclear growth prospects, and heavy reliance on limited operational data from just 2 locations.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Barry Knepper, CPA⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 51 / 100 rating
- 01MINOROnly 2 existing units creates severe lack of validation data and suggests minimal market traction despite franchise availability
- 02MINOR8.5% royalty on average revenue of $115,731 yields only ~$9,837 annual royalties per unit, indicating royalty structure may not support franchisor sustainability
- 03MINOR21.2% net profit margin ($24,584 on $115,731) is healthy but average revenue is modest; narrow operating margin leaves little buffer for underperforming locations
- 04MINORUnknown growth trajectory with only 2 units prevents assessment of system expansion health or franchisee success rate
- 05MINORWide investment range ($33,459–$168,436) suggests highly variable startup costs; unclear what drives 5x difference between low and high end
- 06MEDNo Item 19 financial performance data disclosed; cannot validate whether the $115,731 average and $24,584 net income are realistic for new franchisees
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 | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Zip codes/Demographics |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Suffolk County, New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 8 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Village East Gifted · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Village East Gifted franchise?
The total investment to open a Village East Gifted franchise ranges from $33K – $168K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Village East Gifted franchise owners earn?
According to Item 19 of the Village East Gifted FDD, the average gross sales per unit is $116K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Village East Gifted's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Village East Gifted (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Village East Gifted franchise locations are there?
As of their most recent FDD filing, Village East Gifted has 2 total units in the United States, including 0 franchised units and 2 company-owned units.
Is Village East Gifted a good franchise to buy?
FranchiseVerdict rates Village East Gifted as a A-grade franchise with a risk score of 51 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.
For franchisors
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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.