Complete investment analysis based on official FDD data
Total Investment
$922,500 – $1,293,500
Franchise Fee
$75,000
Royalty Rate
7.0%
The total initial investment to open a Celebree School franchise ranges from $922,500 to $1,293,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $75,000.
Midpoint estimate: $1,108,000
$75,000
One-time initial fee
The Celebree School franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Celebree School brand and is included in the total initial investment range above.
Royalty Fee
7.0%
of gross revenue
Ad/Marketing Fund
2.0%
of gross revenue
Total Ongoing Fee Burden: 9.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty Fee | 7.0 | PCT | Gross Revenues means the aggregate amount of all revenues billed and generated regardless of collection from the delivery of services and all other income of every kind and nature related to your School. Excludes: bona fide documented sales taxes, customer refunds made in good faith, student security deposits, and revenues from enrichment programs. Due on Wednesday of each week via electronic funds transfer. |
| Brand Fund Contribution | 2.0 | PCT | Currently 2% of Gross Revenues, commencing on opening date. Franchisor may modify upon 90 days' prior written notice by increments of up to 0.5% to a maximum of 3% of Gross Revenues; however, will not increase by more than 1% per year. Due on Wednesday of each week via electronic funds transfer. |
| Local Advertising | 1250.0 | VARIABLE | Minimum $1,250/week until Gross Revenues in any week exceed $28,000; thereafter, 2% of Gross Revenues. Paid to third party vendors for approved local community awareness, advertising, public relations, community involvement activities, sponsorships, business partnerships and promotion. Must report expenditures quarterly. If fail to spend required amount annually, must spend deficit in first quarter of following year or contribute deficit to Brand Fund. |
| Cooperative Contributions | 0.5 | PCT | 0.5% of Gross Revenues unless members of the Cooperative agree to a higher amount. If franchisor establishes a regional marketing cooperative in your market, you must join and make contributions. Local Advertising expenditure requirement will be reduced by the amount of any contribution required to a Cooperative. Franchisor intends to form Cooperatives in any market with five or more open Celebree Schools. |
| Centralized System Fee | 1450.0 | FIXED | Currently $1,450 per month. Start paying when you open the School. Due on the 1st Wednesday of the month via electronic funds transfer. Franchisor may modify the Centralized System Fee from time to time. |
| Collection Costs and Expenses | N/A | VARIABLE | Amount incurred. Due upon demand. Includes collection agency fees, costs incurred in creating reports demonstrating Gross Revenues, attorney's fees, and related expenses incurred in enforcing the terms of the Franchise and Development Agreements. |
| Convention Registration | 1250.0 | VARIABLE | Currently $1,000 to $1,500 per person. Due upon demand. Operating Principal must pay a registration fee to attend Annual Convention and pay any travel costs for up to three days each year. |
| Customer Complaints | N/A | VARIABLE | Reasonable costs and expenses. Due upon demand. Must reimburse franchisor for reasonable costs and expenses incurred in resolving customer complaints that franchisee failed to resolve at School. |
| Enforcement Expenses | N/A | VARIABLE | Reasonable cost of attorneys' fees and expenses. Due upon demand. Payable if franchisor obtains injunctive or other relief for the enforcement of any term of the Franchise and Development Agreement. |
| Indemnification | N/A | VARIABLE | Will vary under circumstances. Due as incurred. Must reimburse franchisor if it incurs any expense, including attorneys' fees and other costs, or is held liable for claims arising out of the operation of franchisee's School. |
| Interest | 1.5 | PCT | 1.5% per month or the maximum rate permitted by applicable law. Due with payment of overdue amount. Interest calculated from the date the payment was due until paid in full. |
| Late Fee | 250.0 | VARIABLE | $250 plus $100/day beginning on the third day after the event which resulted in the imposition of the late fee. Due upon demand. Payable if fail to: (1) timely notify and/or deliver copies of any adverse action or order which may adversely affect any permit, certificate or license, the operation of the School or financial condition; (2) timely submit any required forms, reports, records, information and/or data; or (3) update on a daily basis all customer records in designated customer relationship management system and billing system. |
| Management Fee | N/A | VARIABLE | Reasonable fees. Due upon demand. Due if franchisor or a third party manages the operation of School upon the Operating Principal's death or disability. |
| Private Securities Offering | 10000.0 | VARIABLE | $10,000 or such greater amount as is necessary to reimburse franchisor and its outside advisors for expenses. Due with submission of offering materials for review. Payable if franchisee intends to offer securities to investors. Also must reimburse on an annual basis for franchisor's costs associated with providing information for annual reports. |
| Relocation Fee | 10000.0 | FIXED | $10,000. Due upon demand. Payable if franchisee relocates School to cover administrative costs associated with evaluating the proposed site and preparing a new Franchise Agreement. |
| Reimbursement of Costs of Audit | N/A | VARIABLE | Actual cost of audit, including travel, lodging, wages and reasonable accounting and legal costs. Due upon demand. Payable only if an examination or audit reveals an understatement of the Gross Revenues of 2% or more. |
| Reimbursement of our Expenses | N/A | VARIABLE | Amount franchisor pays on franchisee's behalf. Due upon demand. Payable only if franchisor pays, or becomes obligated to pay, monies on franchisee's behalf by consent or otherwise under the Franchise Agreement including amounts paid to obtain insurance if franchisee fails to maintain required insurance policies. |
| Renewal Franchise Fee | N/A | VARIABLE | Documented costs to process the renewal, which shall not exceed $10,000. Due upon execution of a renewal franchise agreement. If franchisee chooses to and is approved to renew Franchise Agreement, must sign franchisor's then current form of renewal franchise agreement. |
| Supplier Evaluation | 1250.0 | VARIABLE | Reasonable costs of evaluation, which currently are expected to range between $1,000 and $1,500 although costs could be less than or exceed these amounts depending on the product and the supplier. Due upon demand. Payable whether or not franchisor approves the supplier. |
| Taxes | N/A | VARIABLE | Amount imposed on franchisor. Due upon demand. Must reimburse franchisor for any taxes, fees or assessments imposed on franchisor for acting as a franchisor or licensing the Proprietary Marks to franchisee. |
| Training - Additional Programs | N/A | VARIABLE | Franchisor does not currently charge these fees. Due upon demand. Franchisor has the right to charge reasonable training fees for additional training programs that it administers during the term of Franchise Agreement. |
| Training - Replacement Personnel | 3000.0 | FIXED | Currently $3,000 per person per week. Due upon demand. If franchisee needs to send replacement Operating Principal, School Director, Trainers or managerial staff to management training program. |
| Training - On Site | 500.0 | FIXED | Currently $500 per representative per day and travel expenses. Due upon demand. If franchisor sends a representative to franchisee's School to provide training for staff. |
| Training Transfer Fee | 30000.0 | FIXED | $30,000. Due upon demand. Payable if franchisee acquires the rights to the Franchised Location and signs a Franchise Agreement due to a resale or a transfer. |
| Transfer Fee | 20000.0 | VARIABLE | $20,000 plus any costs franchisor incurs on franchisee's behalf related to the transfer. Due upon demand. Payable if franchisee proposes to sell or transfer business (or a partial ownership interest). Fee will be reduced to $12,000 if the transfer is to an immediate family member of an owner for estate planning purposes. |
| Transfer Fee (Transfer to Wholly Owned Entity) | 5000.0 | FIXED | $5,000 if the transfer takes place more than 30 days after signing the Franchise Agreement or Development Agreement. Due upon demand. If franchisee signs Franchise or Development Agreement as an individual or group of individuals, must transfer the agreement to a corporation or limited liability company wholly owned by franchisee before opening School. There is no transfer fee if this transfer is completed within 30 days after signing the agreement. Otherwise, must pay a transfer fee of $5,000. |
| Transfer Fee - Referred Candidate | 10.0 | PCT | 10% of the purchase price of the School. Due upon closing. Payable if franchisor refers the purchaser to franchisee, which may include any current or former franchisee, franchise applicant, or School Director of a Celebree School. |
| Quality Control Programs | N/A | VARIABLE | Out of pocket costs. Due as incurred. Must pay costs that franchisor incurs to third parties to carry out quality control programs at franchisee's School if franchisee doesn't pay third parties directly for their services. |
Category
Childcare
Franchise Score
out of 100
Celebree School is a franchise network of preschools and early learning centers providing developmentally appropriate curriculum and child care services. The company focuses on creating a nurturing environment that promotes academic and social-emotional development.
Median Revenue
$2,130,464
per year, per location
Estimated Owner Profit
$568,834
per year
Profit Margin
26.7%
of revenue
Estimation method: disclosed
Estimated ROI (Simple Payback): 1.9 years
Based on midpoint investment of $1,108,000 and estimated annual owner profit of $568,834.
Avg. Annual Closure Rate
0.0%
Low risk — below industry average
Net Unit Growth
+26 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 3 | +10 | — | — | 13 |
| 2023 | 13 | +7 | — | — | 20 |
| 2024 | 20 | +9 | — | — | 29 |
Based on the FDD data, here is a data-driven snapshot of the Celebree School franchise opportunity:
Overall Score
82/100
Strong opportunity
Est. Payback Period
1.9 yrs
Fast payback
Risk Level
Low
0.0% annual closure rate
Celebree School scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,130,464 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Celebree School franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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