THE GODDARD SCHOOL

Item 6 details the ongoing fees: a 7% royalty on gross revenues, 4% into the TGS Marketing Fund, plus a flat $700 monthly Proprietary Curriculum Fee—totaling significant outflows that eat into margins without disclosed top-line revenue to benchmark against. Upfront, the Item 7 franchise fee hits $135,000, and while exact total investment ranges aren't specified here, SBA data paints a clear picture: 608 loans averaging $1,813,948 per location, with an impressively low 0.8% default rate. This suggests banks view Goddard as low-risk, likely due to steady demand from working families for its play-based preschool programs serving kids up to age 10.

System health metrics from Items 20 and 21 reveal modest expansion—627 locations in 2023 to 642 in 2024 (+2% growth), with 36 projected new units and 18 transfers, indicating steady but not explosive scaling since franchising began in 1988. The lack of Item 19 disclosure is a red flag for revenue transparency; without average unit volumes or EBITDA figures, you're flying somewhat blind on profitability, forcing reliance on SBA success as a proxy for viability. For education investors eyeing $1M+ commitments, Goddard's lender track record screams reliability, but the opacity demands direct outreach to operators for real earnings stories.