If you're thinking about investing in a childcare franchise, you may be asking yourself, “How much does a Goddard School franchise make?”
Understanding the historical financial performance of a Goddard School franchise is one of the most critical steps in evaluating whether this early childhood education investment fits your financial goals.
In this article, we will explore the financial disclosures provided in Item 19 of Goddard’s Franchise Disclosure Document (FDD) for a Goddard School franchise.
The Goddard School: Average Gross Revenue & EBITDA
One of the most common questions prospective franchisees ask is, "How much will my school make?" While that's an understandable question, franchisors typically do not make claims, guarantees, or promises about the future financial performance of a franchise location.
Every market is different, and actual results depend on numerous factors such as location, enrollment, operating expenses, staffing, local competition, state or local laws, changes in market and economic conditions, and the franchisee's operation and management of the franchised business.
Instead, prospective franchisees can review the historical financial information disclosed in Item 19 of the brand’s Franchise Disclosure Document. Item 19 provides actual performance data from existing locations, giving candidates a clearer picture of how schools within the system have performed historically.
Based on 2025 results from 620 mature Goddard Schools* that had been operating for more than 18 months, Item 19 of Goddard’s 2026 Franchise Disclosure Document reported:
- Average Annual Gross Revenue: $2,507,631
- Average Annual EBITDA: $546,554
- Average Annual EBITDA Percentage: 21.8%
*Based on mature schools opened for 18 months or more as of 2025. EBITDA is defined as gross revenue less all expenses directly related to operating the school excluding interest, taxes, depreciation, and amortization. You should refer to Item 19 of Goddard Franchisor, LLC’s 2026 Franchise Disclosure Document for more information regarding the reported earnings of Goddard School franchises. Your individual results may differ. There is no assurance that you will earn as much as the amounts reported by Goddard School franchisees.
While past performance is not a guarantee of future results, Item 19 can help prospective franchisees better conduct their own informed financial analysis and evaluate the opportunity using historical data.
Alongside reviewing historical financial performance, prospective franchisees should also understand what it costs to open a Goddard School and how those costs fit into their overall investment evaluation.
What Does Average Gross Revenue Mean?
Gross Revenue is defined in Goddard’s FDD as “The amount billed by a School for all services or products of any nature rendered or sold at or from or as a result of the School, and without deduction of any kind”, and is determined on an accrual basis.
For prospective franchisees, average gross revenue can be a useful benchmark because it shows how mature schools in the system have performed historically. However, no franchisor can predict how a new location will perform.
It's important to remember that revenue is only one part of the financial picture. Two schools may generate similar revenue but have different profitability depending on numerous factors. That's why prospective franchisees should consider gross revenue alongside other performance metrics, such as EBITDA, when evaluating the opportunity.
What Does Average EBITDA Mean?
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is defined in Goddard’s FDD as “Gross Revenue less all expenses directly related to operating the School excluding interest, taxes, depreciation and amortization.” Unlike gross revenue, which measures the total accrued income for services and products, EBITDA focuses on operational performance by accounting for many of the costs required** to operate the business.
EBITDA margin generally measures how efficiently a school converts revenue into operating profits. At an average annual EBITDA margin of 21.8%, mature Goddard Schools* retained nearly 22 cents in EBITDA for every dollar of revenue generated in 2025 before accounting for interest, taxes, depreciation, and amortization.
Like any financial metric, EBITDA should be viewed in context. Individual school performance can vary based on numerous factors such as enrollment levels, labor costs, occupancy expenses, local market conditions, and the owner's management approach. That's why prospective franchisees should review both revenue and EBITDA data together when evaluating the historical performance of schools within the system and understanding the key metrics used to evaluate a daycare franchise's performance.
What Factors Can Affect a School's Financial Performance?
While Item 19 provides historical results from mature schools in the Goddard system, individual results can vary significantly. Factors that may influence a school's financial performance include:
- Enrollment and occupancy levels
- Tuition rates in the local market
- Labor and staffing costs
- Facility and occupancy expenses
- Local competition
- Time since opening
- The franchisee's operational and management decisions
Because of these variables, prospective franchisees should view Item 19 as historical information rather than a prediction of future results. Reviewing the FDD, speaking with existing franchisees, and evaluating local market conditions are important parts of the due diligence process.
Final Thoughts
Financial performance is an important consideration when evaluating any franchise opportunity. While no franchisor can predict the earnings of a new location, the results reported in Item 19 of the FDD provide a snapshot of the performance achieved by existing Goddard School locations and can serve as a useful benchmark during your research process.
As you continue exploring franchise ownership, be sure to review the complete Franchise Disclosure Document, speak with current franchisees, compare the top early education franchises, and evaluate how the opportunity aligns with your personal, financial, and long-term business goals.
Check Out These Additional Resources
We hope this overview has helped you better understand the metrics prospective franchisees should consider when evaluating the opportunity.
At The Goddard School, we're seeking entrepreneurs who are passionate about making a positive impact in their communities, committed to delivering educational excellence, and eager to build a business within an established franchise system.
Here are some additional online resources you may like to check out:
- What Are the Steps to Goddard School Franchise Ownership?
- Is Owning a Childcare Franchise Right for You? Pros & Cons to Consider
- How to Get Funding to Buy a Childcare Franchise: SBA Loans for Starting a Franchise
If you’re ready to begin your franchising journey with The Goddard School, click here to submit your information and a member of our team will be in touch.
**The items included in the expense category identified as miscellaneous items include bank charges, office supplies, utilities, telephone, transportation, payroll taxes, employee costs, marketing, royalties, repairs and maintenance, school supplies, snacks, technology, marketing and professional fees. The expenses reported may also include miscellaneous items that are subject to the discretionary spending of the individual franchisee.