The Goddard School Franchise Costs, Fees & FDD

Year Business Began: 1986

Franchising Since: 1988

Headquarters: King of Prussia, Pennsylvania

Estimated Number of Units: 650

Franchise Description: The franchisor is Goddard Franchisor LLC. The franchisor’s immediate predecessor and indirect parent company is Goddard Systems, LLC. The franchisor’s direct parent company is Goddard Funding LLC. Franchisees operate a school offering primarily preschool programs and care for children between 6 weeks and 10 years of age. The programs offered to a child will vary depending upon the age, skills and development of the child. The school will ordinarily be open from 7 a.m. to 6 p.m. five days a week.
Training Overview: The franchisor will provide franchisees with approximately 10-15 days of intensive initial training through a blend of live sessions, provided both virtually and in-person, at its corporate offices or at another training site the franchisor selects, plus online coursework in the marketing, operation, management and education product of a school. Currently, the first phase is a combination of online course work on the franchisor’s adult learning platform and a five-day virtual live session. This training phase will occur after franchisees have received their building permit, have received both a definite and final address and telephone number for their school, and they have returned all documents and deposits the franchisor requires. The second phase of initial training, which is currently a combination of online course work, a five-day virtual live session, and a 5-day in-person session will be held approximately 8 to 12 weeks before the school receives its Certificate of Occupancy (CO). Franchisees must attend and successfully complete, at the franchisor’s request, supplemental and refresher training programs, sales meetings, operations meetings, advertising meetings and conventions which may be offered periodically at various locations or via Intranet, webinar or other form of electronic communication, determined by the franchisor during the term of the franchise.

Territory Granted: Franchisees may operate the school only at the location the franchisor has approved. The franchisor does not restrict the area into which franchisees may go to solicit business or the customers whom they may solicit. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls. However, the number of schools operated or licensed by the franchisor will not exceed a maximum of one school for each 10,000 households in the county in which the school is located if franchisees are in compliance with their obligations under the Franchise Agreement.

Obligations and Restrictions: The individual designated, and the franchisor has approved, to conduct the day-to-day management and operation of the school (the “designated on-site franchisee”) must devote full time, energy and efforts to the management and supervision of the school to satisfy and honor the obligations under the Franchise Agreement. If the franchisee is a married individual, the franchisor will require both the franchisee and spouse to sign the Preliminary Agreement, Franchise Agreement and related agreements as individuals. Franchisees may not offer or sell any products or services that do not meet the franchisor’s standards and specifications or that are not approved by the franchisor. Franchisees may not use the premises for any purpose other than the operation of a school, unless approved by the franchisor, which approval the franchisor is not obligated to provide.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. A five-year renewal term is available, if the franchisee meets certain requirements.

Financial Assistance: Franchisees are responsible for setting up their own financing arrangements; however, the franchisor has a finance department that can assist them in the preparation of financial applications to lending institutions. The franchisor will not derive revenue from any third party for this assistance. The franchisor and its affiliates do not offer or arrange direct or indirect financing, except that if franchisees purchase certain initial furniture, equipment, computer system, IT Security and other items and materials through purchase orders it offers to issue and submit to approved suppliers on their behalf (other than for a satellite location or an annex). The franchisor will pay the vendors on the franchisee’s behalf after the vendors issue their invoice and the franchisee will pay the franchisor when the opening invoice is received. The franchisor and its affiliates do not guarantee any of the franchisee’s financing, lease or any other obligations. The franchisor and its affiliates do not receive direct or indirect payments for placing financing with any other lender.

Estimated Initial Investment

Name of Fee	Low	High
Initial License Fee	$135,000	$135,000
Initial Training and Opening Support Fee	$35,000	$42,000
Initial Marketing Fee	$55,000	$75,000
Site Development Assistance Fee	$35,000	$35,000
Background Check (up to four individuals)	$1,500	$6,000
Convention Deposit	$2,000	$2,000
Lease Deposit	$600,000	$1,400,000
Building Construction and Site Work	$3,500,000	$5,500,000
Building Loan Finance Costs	$200,000	$300,000
Construction Manager	$0	$50,000
Environmental and Soil Testing	$0	$5,000
Furniture, Fixtures and Equipment	$218,000	$263,000
Playground Equipment	$140,000	$240,000
Marketing Materials, Stationery, Forms, and Curricular Resources	$5,000	$5,000
Signs	$20,000	$20,000
Computer System, IT Security, Telephone, System Infrastructure, Interactive Flat Panel and Digital Signage Package	$26,000	$40,000
Security System	$40,000	$40,000
Miscellaneous Opening Costs	$120,000	$135,000
Additional Funds – 3 months	$100,000	$275,000
ESTIMATED TOTAL (if you purchase the land and build the school)	$5,232,500	$8,568,000

 
Other Fees

Type of Fee	Amount
Royalty Fee	7% of gross receipts of the school.
Marketing Fund Marketing Fee	4% of gross receipts, including the gross receipts derived from any satellite location or annex, per month; or lesser rates we may assess for certain time periods.
Proprietary Curriculum Fee	Then-current fee – currently $700 per month, plus taxes.
Local Advertising, Marketing and Promotion	The franchisee’s cost.
Telephone Charges	Cost of telephone services.
Audit Expenses	Cost of audit including the charges of any independent accountant and the travel expenses, including food, transportation and lodging, and compensation of the franchisor’s employees, or $10,000, whichever is greater.
Late Notification of Adverse Action or Order Fee	$50 for each and every failure and/or refusal to comply plus $25 per day beginning on the third day.
Late Submission of Forms, Financial Reports, other Reports, Information and Data	$50 for each and every failure and/or refusal to comply plus $25 per day beginning on the third day.
Transfer Initial License Fee	$40,000
Initial Training and Transfer Support Fee (on-site field and technical)	The then-current initial training and transfer support fee (currently $25,000). If franchisees are an existing franchisee and they purchase an existing school, the fee is $15,000.
Transfer Marketing Fee	The then-current transfer marketing fee (currently $15,000) or a different amount based on the franchisor’s review of the franchisee’s proposed plan and assessment of the school’s needs.
Transfer Fee	$5,000 transfer assignment fee.
Transfer Deposit	$2,500
Franchisee Add-on Fee	$10,000
Renewal License Fee	$10,000
Background Check Fee	$1,500 per person.
Director’s Training Fee	$500 - $5,000
Designated On-Site Operator Training Fee	$3,500
Conventions	Reasonable registration fee.
Failure to Obtain Accreditation Fee	$1,000
Retraining for Failure to Cure Default Fee	$500/day, plus the expenses of the franchisor’s personnel.
Interest on Late Payments	1.5 % per month or the maximum rate permitted by law.
Insufficient Funds Fees, ACH and Other Financial Institution Charges	Franchisees must pay the greater of $30 or the fee imposed by any financial institutions or any electronic funds transfer network or ACH for any returned, stop payment, insufficient funds, ACH fee or similar fee for an unsuccessful or late payment and any replacement payment.
Insurance; Insurance Reimbursement	Policy cost plus reasonable fee for the franchisor’s expenses if the franchisor obtains insurance for the franchisee.
Rent for Premises of School	Will vary under circumstances.
Maintenance/Refurbishing/ Replacement	As specified.
Site Development Assistance Fee – Annex, Satellite Location, Relocation, Expansion	Up to the franchisor’s then current site development assistance fee offered for new franchises for any relocation, expansion, annex and material alterations of the school, and $8,750 for the franchisor’s services in connection with any satellite location, including the development, any relocation, expansion and material alterations of a satellite location.
Proprietary Software Fee	Reasonable license fee.
Computer and Telephone System Modifications and Enhancements System-Wide Fee and Individual Information Technology Maintenance and Support Services Fee	As specified.
De-Identify Premises	Costs plus reasonable administrative fee.
Litigation Expenses	The franchisor’s attorneys' fees, court costs, expert fees and litigation expenses.
Taxes	Amount of taxes.
Late Crisis Notification Fee	$2,500 for each and every failure to notify plus $500 per day beginning on the second day.
Indemnification	Amount of loss or damages plus costs.

The above information has been compiled from the FDD of The Goddard School. Year of FDD: 2025.
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