The Goddard School Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$952,500 - $8,568,000
Franchise Fee
$40,000
Total US Locations
642
Business Summary
The Goddard School franchisees operate schools offering primarily preschool learning programs and care for children between 6 weeks and 10 years old. The Goddard School focuses on using academically endorsed methods to ensure children learn while having fun, helping them succeed in school and life.
Corporate History
The Goddard School system was founded in 1983, with the first school opening in Malvern, Pennsylvania. Franchising began in 1988. Goddard Manager acquired the rights to the franchise system in March 2002. In August 2022, a secured financing transaction led to a restructuring where Goddard Franchisor LLC became the franchisor of The Goddard School system, acquiring all franchise agreements and U.S. trademarks. Goddard Manager now provides support and services to franchisees under a management agreement.
Financial Overview
Investment Range
$952,500 - $8,568,000
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$135,000
Royalty %
7%
Marketing %
4%
Equipment Costs (Low)
$449,000
Equipment Costs (High)
$6,103,000
Working Capital
$187,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The Goddard School, specifically Goddard Franchisor LLC, appears to be in good financial health. Its audited financial statements show positive net income of $16,425,607 in 2024 and $6,427,962 in 2023. The independent auditor has issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects according to generally accepted accounting principles. No specific concerns about the company's ability to continue as a going concern were identified through December 31, 2024.
Financing Details
The Goddard School does not offer or arrange direct or indirect financing to franchisees. However, it facilitates payment for certain initial purchases, such as furniture, equipment, computer systems, and IT security. For these items, The Goddard School or its affiliate will pay the approved suppliers on behalf of the franchisee and then bill the franchisee when they receive their Opening Invoice. No interest is charged for this service, and The Goddard School does not take a security interest in the items or impose any prepayment penalty. Franchisees are responsible for setting up their own financing arrangements, but The Goddard School's Finance Department can assist in preparing financial applications for lending institutions.
Performance Metrics
Total US Locations
642
Franchised Units
642
Corporate Units
0
Avg Square Footage
11,500
Franchising Since
1988
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Goddard School has no litigation history to report, as Item 3 states that no litigation is required to be disclosed. This indicates that Goddard Franchisor LLC and its management have not been involved in any material litigation in the past three fiscal years.
Bankruptcy History
The Goddard School has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed for Goddard Franchisor LLC or its management.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew, a Goddard School franchisee must provide written notice between 6 and 12 months before the agreement expires. Franchisees must be in substantial compliance with their agreement, possess the right to occupy the school premises for the renewal term, and provide a copy of their lease. They must also complete any required training, pay a $10,000 renewal license fee (which includes background checks for up to two people), and ensure all background check results are satisfactory. Additionally, franchisees need to complete any required repairs and remodeling to meet current brand standards and sign a general release and the then-current form of the Franchise Agreement and related documents.
Training & Support Program
Franchisor Assistance
Before opening, The Goddard School provides assistance with site selection and securing a lease or purchase. It also offers specifications for supplies, equipment, and signs, and assists with opening promotion, brand development, public relations, and initial marketing. Franchisees receive initial training, which includes online coursework and virtual/in-person live sessions, covering proprietary programs, platforms, and curricular materials. After opening, The Goddard School offers continuing advisory assistance, reviews and approves construction plans, administers the TGS Marketing Fund, supports local marketing efforts, and provides access to the operating manual and ongoing training programs.
Initial Training Hours
92
Training Location
Corporate offices in King of Prussia, PA and online/virtual sessions
Ongoing Support
After opening, The Goddard School provides continuing advisory assistance, reviews and approves construction plans, and administers the TGS Marketing Fund. Franchisees receive help with school-specific and local marketing efforts, including lead management. The franchisor also makes the operating manual available and offers additional training programs, sales meetings, operations meetings, advertising meetings, and conventions, which franchisees may be required to attend. There are periodic inspections to ensure high quality and adherence to brand standards.
Franchise Requirements
Ideal Candidate Profile
The Goddard School seeks franchisees who are U.S. citizens or permanent legal residents. Ideal candidates or their designated on-site franchisee must be present and personally involved in the school's daily operations, dedicating full time, energy, and effort to management and supervision. The Designated On-Site Franchisee must be a party to the Franchise Agreement and hold at least a 10% equity interest, unless a Designated On-Site Operator is approved. Franchisees must also pass credit and criminal background checks. The Goddard School discourages franchisees from hiring family members as directors.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
For individual franchises, The Goddard School limits the number of schools to a maximum of one for every 10,000 households in the county where the school is located. For Development Agreements, a Development Area is defined based on factors like the number of families, children under 5, household income, population trends, traffic, commercial and residential establishments, and existing childcare options. Minimum Development Area sizes are 0.5 square miles in urban settings and 1 square mile in suburban settings.