Ivybrook Academy

Item 7 lays out the steep entry: $540,700-$869,860 total investment, led by a $50,000 franchise fee, with buildout dominating costs in the $400K+ range for these 6,000 sq ft facilities. Ongoing fees hit 7% royalty, 1% brand/ad fund, plus a $250/month tech surcharge—aligning with education category norms but adding up fast on projected $967,875 average gross sales (median $886,446). That Item 19 EBITDA margin of 0% flashes a red flag, implying tight profitability after expenses unless operators nail efficiencies; top-quartile units might push 15-20% margins based on benchmarks, but averages suggest owners work for every dollar.

System momentum impresses: 33 locations in 2023 ballooned to 40 in 2024 (+21% growth), with 16 new units eyed ahead—fueled by Weddington, NC headquarters' support in curriculum, training, and co-op buying. SBA records show 40 loans averaging $633,538, a near 1:1 match with units, indicating accessible financing but watch for default rates in full Item 20 data. No major litigation pops, yet zero-margin reality tempers the expansion hype; ideal for education enthusiasts with $1M+ liquidity who can optimize half-day model's premium pricing ($1,200-$1,800/month per child) to flip that EBITDA positive.