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CASA DE CORAZON

CASA DE CORAZON

Casa de Corazon offers franchises for Spanish immersion intercultural early childhood learning centers that provide educational programs to children between six weeks and five years of age, using a proprietary curriculum, on-site organic meals with an environmentalism approach, and standards aligned with NAEYC. Franchisees operate under the Casa de Corazon service marks, following the franchisor's system including recipes, designs, and policies. The target market is dual-income upper to middle-class families, predominantly English speakers with 1-2 children seeking quality childcare.

4locations
$916K–$4268K
Since 2016
ServicesSt. Louis Park, MNwww.casaearlylearning.comDisclaimer

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Franchise Costs

Franchise Fee
$70,000
Initial Investment
$916,300 – $4,268,100
Royalty Rate
7.00%
Brand Fund
2.00%
Fixed Monthly Fees
$705 – $705

7% royalty + 2% brand fund + $705/mo technology fee

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$2,361,509
Median Gross Revenue
$2,723,498.5
EBITDA Margin
19%
Top Quartile Revenue
$2,844,693
Bottom Quartile Revenue
$1,154,346
Average EBITDA
$532,507

Data Based On: Revenue data is based on 4 franchised centers open and operating for the full year ended December 31, 2024. Detailed P&L data (EBITDA) is based on 2 of these franchised centers (Franchised Center 1 and Franchised Center 2).

* Average gross revenue was calculated as the mean of the total revenues for the four franchised centers ($2,651,142 + $2,844,693 + $1,154,346 + $2,795,855) / 4 = $2,361,509. Median gross revenue was calculated from these four values. Revenue top and bottom quartiles are reported as the highest and lowest revenue values respectively, as specific quartile segments were not provided. Average EBITDA was calculated as the mean of the 'Net Operating Income Before Depreciation, Interest, Debt Repayment and Income Taxes' for Franchised Center 1 ($573,862) and Franchised Center 2 ($491,152). EBITDA margin percentage was calculated as the average of individual EBITDA margins for Franchised Center 1 (573,862 / 2,651,142) and Franchised Center 2 (491,152 / 2,844,693). Best guess profit low and high were taken directly from the minimum and maximum EBITDA values of the two franchised centers.

Extracted Item 19 Section

Avg. Revenue: $2,361,509

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CASA DE CORAZON Franchise Analysis

Spanish immersion childcare is booming, and Casa de Corazon has carved a niche since franchising in 2016 with just a handful of locations. Item 19 discloses revenue figures that punch above the system's small size, while 29 SBA loans reveal how investors are financing entry—and a low default rate suggests they're holding up. Yet an ongoing lawsuit with a former franchisee casts a shadow; does this young brand's momentum outweigh the risks?

The system's track record shows steady but modest expansion: from 3 franchised locations in 2023 to 4 in 2024 (+33% growth), plus 4 corporate units and 2 projected new ones. Franchising for 9 years hasn't scaled aggressively, which tempers enthusiasm—many education franchises explode faster. Item 19 data shines: average gross revenue of $2,361,509 and median $2,723,498 across these units, implying top performers drive results. But SBA stats (29 loans averaging $1,025,659, 3.5% default) indicate heavy borrowing is common, fitting the steep entry.

Economics demand scrutiny: initial investment spans $916,300-$4,268,100 (franchise fee $70,000), with 7% royalty, 2% ad fund, and $705/month tech fee. Estimated profits range $491,152-$573,862, but 0% EBITDA margin screams red flag—costs are eating all earnings, per FDD disclosures. Litigation involves a former franchisee claiming duress, defamation, and Minnesota Franchise Act violations, signaling potential operational or relational strains. For dual-income families' premium childcare, revenues tempt, but tiny footprint, zero margins, and legal woes mean high risk; only aggressive operators with deep pockets might thrive.

Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How CASA DE CORAZON Compares

Key Insights

  • Higher investment than 76% of Early Childhood Education franchises
  • Lower than average SBA loan default rate in Early Childhood Education
FranchiseInvestmentFeeRoyaltyLocations
CASA DE CORAZON
Current
$916K – $4.3M$70K7.0%4
THE LEARNING EXPERIENCE ACADEMY OF EARLY EDUCATION$781K – $1.5M$60K7.0%411
KIDDIE ACADEMY EDUCATIONAL CHILD CARE$590K – $1.0M$150K7.0%363
Jovie$130K – $205K$50K5.0%160
CHILDRENS LIGHTHOUSE SCHOOLS$1.1M – $1.5M$85K7.0%69
Lightbridge Academy$1.1M – $3.1M$40K7.0%55
Early Childhood Education Average
17 franchises
$867K – $2.4M$74K6.6%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 17 Early Childhood Education franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1MN
2
2WI
2

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SBA Loan History


Historical SBA 7(a) loan data for CASA DE CORAZON franchisees (20122025)

Total Loans
29
Average Loan
$1,025,659
Total Volume
$29.7M
Default Rate
3.5%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

29 SBA loans on record

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Franchisee Contacts

6 franchisee contacts on file from official FDD filings.

6 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases1

Ongoing dispute with former franchisee alleging invalidity of settlement agreement due to duress, defamation, malicious prosecution, tortious interference, and violation of the Minnesota Franchise Act.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
0
Sold to Franchisees
1
Projected New
2

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Frequently Asked Questions

The total initial investment to open a CASA DE CORAZON franchise ranges from $916,300 to $4,268,100. This includes a franchise fee of $70,000. Ongoing royalty fees are 7.0% of gross sales.