Ivybrook Academy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$540,700 - $869,860
Franchise Fee
$25,000
Min Cash Required
$30,000
Total US Locations
41
Business Summary
Ivybrook Academy offers a comprehensive preschool program focused on providing an exceptional learning, enrichment, and socialization environment for children. The franchise caters to families seeking a half-day preschool experience and also provides franchisees with the option to offer private kindergarten classes.
Corporate History
Ivybrook Franchising, LLC was formed as a North Carolina limited liability company on March 26, 2015. Since its inception, its sole business has been selling Ivybrook Academy franchises and providing related goods and services to franchisees. An affiliate, McWilliams Education Services, LLC, has operated an Ivybrook Academy location in Weddington, NC since 2007, but Ivybrook Franchising, LLC itself has never operated a location.
Financial Overview
Investment Range
$540,700 - $869,860
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$30,000
Royalty %
7%
Marketing %
1%
Equipment Costs (Low)
$94,000
Equipment Costs (High)
$146,500
Working Capital
$32,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Ivybrook Franchising, LLC's financial condition, as detailed in its financial statements, raises substantial doubt about the company's ability to continue as a going concern. The independent auditor's report highlights recurring losses from operations and a net capital deficiency.
Financing Details
Ivybrook Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any agreements or leases.
Performance Metrics
Total US Locations
41
Franchised Units
40
Corporate Units
1
Avg Square Footage
6,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Ivybrook Franchising, LLC has no litigation history that is required to be disclosed in this FDD. This means that Ivybrook Franchising, LLC has not been involved in any material litigation proceedings.
Bankruptcy History
Ivybrook Franchising, LLC's financial statements include an independent auditor's report with a going concern qualification. This indicates that the company has suffered recurring losses from operations and has a net capital deficiency, raising substantial doubt about its ability to continue as a going concern.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew their Ivybrook Academy franchise, franchisees must have fully complied with all material provisions of their franchise agreement throughout the initial term. They must pay a renewal fee, ensure they have the right to occupy their approved location (or an acceptable substitute), and make any necessary capital expenditures to align their business with current Ivybrook Academy System standards. Franchisees must also satisfy all monetary obligations to Ivybrook Franchising, LLC, not be in default of any agreements, provide timely written notice of their intent to renew, sign Ivybrook Franchising, LLC's then-current franchise agreement, comply with current training requirements, and sign a general release of liability.
Training & Support Program
Franchisor Assistance
Ivybrook Academy provides pre-opening assistance with real estate by helping identify a broker, reviewing potential locations, visiting sites, and advising on school layout. They also provide initial training to the owner and administrators. During operations, Ivybrook Academy authorizes products, services, and curricula, provides manual modifications, offers advice on pricing, sets accounting standards, and gives general guidance via phone and email. They also administer a Brand Fund and make System improvements available. Optionally, Ivybrook Academy may develop an online presence, make periodic consultation visits, offer additional ongoing training, promote the brand, establish technology requirements, and develop new product and service offerings.
Initial Training Hours
80
Training Location
Online learning portal and in-person at Ivybrook Academy's Charlotte, North Carolina location
Ongoing Support
After opening, Ivybrook Academy provides ongoing support by making modifications to its Confidential Brand Standards Manual available to franchisees, offering advice and guidance on prices, prescribing a standard chart of accounts, and being available to discuss problems and offer general guidance via telephone, email, and newsletters. Ivybrook Academy also administers a Brand Fund and makes all System improvements and additions, such as new revenue opportunities and curricula, available to franchisees. Optionally, Ivybrook Academy may provide periodic on-site consultation and guidance, offer additional ongoing training (which may be mandatory), market and promote the brand, and develop new product and service offerings.
Franchise Requirements
Ideal Candidate Profile
Ivybrook Academy seeks franchisees who are owner-operators willing to designate one owner as the Chief Executive Officer to be primarily responsible for the business and have decision-making authority. This CEO must have at least a 10% ownership interest in the franchise and dedicate a minimum of 20 hours per week to on-premises operations during the first year. Additionally, franchisees must appoint a School Administrator to provide full-time (at least 40 hours per week) on-premises supervision. Both the CEO and School Administrator must successfully complete the franchisor's initial training program. Ideal candidates must also comply with all local, state, and federal laws, including licensing requirements, and ensure their school meets accreditation standards from NAEYC and Better Business Bureau after two years of operation. The franchisor also requires owners and key personnel to sign non-disclosure, non-solicitation, and non-competition agreements.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
exclusive
Territory Size Requirements
Each Ivybrook Academy territory is defined as the lesser of a population of 125,000 people or a three-mile radius around the business location. Ivybrook Franchising, LLC can adjust the population size by mutual agreement with the franchisee and may designate territories using various geographic boundaries like towns, cities, counties, streets, geographical features, or trade areas.
Staffing Notes
Ivybrook Academy requires at least one owner to be designated as the Chief Executive Officer, responsible for the business and having a minimum 10% ownership. The CEO must personally participate in operations for at least 20 hours per week during the first year. Franchisees must also appoint a School Administrator to provide on-premises operational supervision for at least 40 hours per week, who may be the same person as the CEO. All Chief Executive Officers and School Administrators must successfully complete Ivybrook Academy's training program and sign non-disclosure, non-solicitation, and non-competition agreements. Franchisees are solely responsible for recruiting, hiring, training, compensating, and managing their employees. All staff must have required credentials, pass background checks, and adhere to uniform/dress code requirements. Ivybrook Academy reserves the right to conduct background checks on any employees or prospective employees.