Celebree School Franchise

Financing Details

Celebree School offers limited financing options, primarily through its affiliate, Celebree Property Investments, LLC (CPI), which may offer to lease premises to franchisees. The terms for such a lease typically include rent ranging from $25,000 to $35,000 per month, with a one-month security deposit. These leases are triple net, lasting ten years with two five-year renewal options. Franchisee owners and their spouses must personally guarantee the lease, and a default in the Franchise Agreement will trigger a default in the lease, and vice-versa. Overdue payments incur interest at the Default Rate (greater of 10% or Wall Street Journal Prime + 2%) and a 5% late payment service charge. In case of a lease default, the landlord can repossess, terminate the lease, collect unpaid rent, relet the premises, and accelerate rent due for the balance of the term. Both parties waive the right to a jury trial and special damages. Additionally, Celebree School requires franchisees to retain a designated financing consultant (potentially an affiliate) to help prepare financial projections and apply for financing with preferred third-party lenders, with the consultant potentially receiving 1% to 2.5% of the loan amount. Apart from these affiliate leasing arrangements and consultant referrals, Celebree School does not directly or indirectly offer financing or guarantee franchisee obligations.

Litigation Summary

Celebree School has no litigation cases required to be disclosed in Item 3 of its Franchise Disclosure Document, indicating a clean legal record for the franchisor and its key personnel.

Renewal Conditions

To renew their Celebree School franchise agreement, franchisees must provide written notice of their intent to renew at least twelve months before the current term ends. They must be in full compliance with all agreements with Celebree School and its affiliates and not have defaulted on any agreements or financial obligations for the preceding twelve months. Franchisees also need to prove they have the right to keep their current location or an approved alternative, agree to renovate their school to meet current brand standards for new Celebree Schools, and fulfill all current standards for new franchisees. They are required to sign Celebree School's then-current renewal franchise agreement, which may have different fees and terms but will not include an initial franchise fee, and also sign a general release of claims against Celebree School.

Staffing Notes

Celebree School requires franchisees to designate an 'Operating Principal' who must own at least 10% of the entity and complete management training. This Operating Principal cannot serve as the 'School Director.' Each school must have a dedicated School Director who supervises day-to-day operations, possesses an associate's or bachelor's degree in early childhood education or a similar field, is 'director qualified' by state requirements, and completes Celebree School's management training program. An Assistant Director must also be hired before opening the temporary welcome center. All schools need an adequate number of trained staff to align with state-required child-to-staff ratios. Operating Principals, School Directors, Assistant Directors, and teaching staff must be CPR and first aid certified. Franchisees are responsible for conducting criminal background checks on all employees and ensuring staff meet high ethical standards and comply with dress, appearance, and hygiene standards. Celebree School has the right to approve or disapprove of staff in roles if their performance negatively affects the brand.