Casa de Corazon Franchise Costs, Fees & FDD

Year Business Began: 2016

Franchising Since: 2016

Headquarters: St. Louis Park, Minnesota

Estimated Number of Units: less than 10

Franchise Description: The franchisor is Casa Franchising, LLC. The franchisor is offering franchises for the operation of a Spanish immersion intercultural early childhood learning center that provides educational programs to children between six weeks and five years of age. The centers are operated under the “Casa de Corazon” service mark and logo and other trademarks, trade names, service marks and commercial symbols the franchisor may authorize.
Training Overview: Franchisees and two of their directors (and their operations manager, if they have one), must successfully complete the initial training program. If the franchisee is a director, then only one director other than the franchisee must attend and successfully complete the initial training program. The initial training program will usually be conducted in Minnesota at a location the franchisor specifies. Currently, the initial training program consists of approximately 10 days of training. The franchisor will provide franchisees with one day of on-site support at their center, without additional charge, immediately prior to the opening of the center for business and at least one day of on-site support at their center, without additional charge, during the 14-day period after the center opens for business. Any new director must attend and successfully complete the new director training program within 90 days after they begin to perform services on the franchisee’s behalf. Each of the franchisee’s teachers must complete curriculum and assessment training to the franchisor’s satisfaction within one year of beginning classroom teaching. Franchisees and the accountant who will be providing them with accounting services must complete financial training within 30 days after opening. Franchisees or a representative approved by the franchisor must attend any conferences or conventions it holds and pay any registration fees it requires, even if franchisees or their representative fail to attend.

Territory Granted: At the time the franchisor approves a site for the center, it will also grant franchisees a territory. The designated territory will generally encompass an area surrounding the center that is the lesser of three miles or an area encompassing 10,000 households. However, the exact size will depend upon various factors including whether the center is located in a metropolitan area, the size of the center, and the number of students the franchisee is licensed to care for in the center. As long as franchisees are in compliance with the Franchise Agreement and any other agreements with the franchisor and any of its affiliates, the franchisor will not operate or grant a third party the right to operate under the Casa de Corazon name an early childhood learning center physically located in the designated territory.

Obligations and Restrictions: Franchisees must participate personally, on a full-time basis, in the operation of the center. Franchisees or if franchisees are an entity, the entity or its majority owner, must be the license holder for the center as required by applicable law. Franchisees must have two directors operate the center. Both directors must have successfully completed the initial training program and be licensed, if required by applicable law. Franchisees must offer the services the franchisor specifies, and franchisees may not sell other products or services in the center without the franchisor’s prior written approval. Franchisees must follow the franchisor’s policies, procedures, methods, and techniques and comply with all of the franchisor’s mandatory standards and specifications when providing services through the center. Franchisees must teach all classes in Spanish.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and they meet the franchisor’s conditions, they can renew their franchise for an additional 10-year period.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligations. The franchisor’s affiliate may offer to provide select franchisees financing assistance in the acquisition of their Casa de Corazon franchise and development of their center. Whether it provides this assistance will depend on various factors including whether and to what extent there are funds for this purpose, whether the franchisee is in a market which the franchisor deems to be a target market, its strategy for growth, the creditworthiness of the candidate and various other factors. The franchisor also provides a 20% discount off the initial franchise fee if franchisees qualify for its Veterans Program.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$70,000	$70,000
Minibus	$3,000	$55,000
Real Estate and Improvements	$75,000	$3,000,000
Design Fees	$60,000	$120,000
Furniture and Equipment	$160,000	$250,000
Kitchen Equipment	$55,000	$65,000
Playground Equipment, Safety Surfacing and Fence	$140,000	$150,000
Initial Supplies	$44,000	$55,000
Signage	$4,800	$21,600
Curriculum	$36,000	$50,000
Travel and Living Expenses While Training	$1,500	$5,000
Grand Opening Advertising	$10,000	$10,000
Ongoing Advertising	$1,500	$3,000
Technology Expenses	$12,000	$17,500
Security System	$45,000	$55,000
Insurance	$2,500	$5,000
Permits and Licenses	$4,000	$7,000
Legal and Professional Fees	$10,000	$15,000
Pre-Opening Payroll Expenses	$7,500	$24,000
Miscellaneous Expenses	$10,000	$20,000
Additional Funds and Working Capital for First 3 Months	$150,000	$250,000
ESTIMATED TOTAL	$916,300	$4,268,100

 
Other Fees

Type of Fee	Amount
Royalty Fee	7% of the monthly gross revenue.
Brand Fund Contribution	2% of the monthly gross revenue.
Technology Fee	Currently, $705 per hour.
New Director/Manager Training	Currently, up to $5,000 depending upon length.
Curriculum and Assessment Training	No charge for this initial training as long as it is performed within one year of center opening, but franchisees must reimburse the franchisor for the travel and living expenses of its trainer, up to $2,000. After the initial training, $150 per hour plus travel and living expenses of the franchisor’s trainer.
Operational Training Fee	Currently, $150 per hour plus travel and living expenses of the franchisor’s trainers if the training is not held at the franchisor’s offices.
Convention Fee	Up to $1,000 depending upon location.
Grand Opening Advertising	Franchisees must spend at least $10,000 to market the grand opening of the center.
Annual Local Advertising Expenditure	Franchisees must spend at least $10,000 annually to market the center.
Advertising Cooperative	No more than the brand fund contribution, which is currently 2% of gross revenue.
Renewal Fee	$7,500
Transfer Fee	Amount equal to then-current initial franchise fee. If the franchisor is not selling franchises at time of transfer, the fee will be amount of franchise fee paid by franchisee for initial franchise.
Audit	Cost of audit, including the charges of any independent accountant and the travel expenses, room and board, and compensation of persons the franchisor employs to make the audit.
Indemnification	Will vary under circumstances.
Cost of Enforcement or Defense	All costs including accounting and attorneys’ fees. Amount will vary under the circumstances.
Interest	Lesser of 1.5% per month or highest rate of interest allowed by applicable law.
Website Modification Fee	$500 per modification.
Product Purchases	Varies from $5 to $470 per item depending on item and quantity purchased.
Financial Reporting Failure Fee	$50 per failure.
Taxes on Amounts Paid to the Franchisor and its Affiliates	Will vary under circumstances.
Insurance Reimbursement	Cost of premiums.
De-Identification Costs	Will vary under circumstances.
Management Fee	5% of gross revenues, plus reimbursement of our out-of-pocket expenses.

The above information has been compiled from the FDD of Casa de Corazon. Year of FDD: 2025.
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