A Goddard School franchise costs $1,003,500 to $1,503,000 to open when a developer builds the school and leases it to you, and $5,493,500 to $8,908,000 if you buy land and build, per the FDD issued April 30, 2026.
Key takeaways
- Item 7 of the Goddard Franchisor LLC disclosure document issued April 30, 2026 prints three totals: $1,003,500 to $1,503,000 (landlord builds), $1,736,500 to $5,032,000 (you retrofit a leased building) and $5,493,500 to $8,908,000 (you buy land and build).
- New franchisees must join the Real Estate Support Program unless Goddard grants a written exception; a third-party developer buys the site, finances construction and becomes your landlord on a 180-month lease (FDD Items 1 and 17, Exhibit D-4).
- Joining that program adds a $75,000 project management fee to Goddard Real Estate Development Company, on top of the $35,000 site development fee paid to the franchisor either way (FDD Item 5).
- After opening, Item 6 lists a 7% royalty, a marketing fund fee of 4% of Gross Receipts (or a lesser rate Goddard chooses) and a $700 monthly curriculum fee.
- The system grew from 598 to 665 franchised schools between January 1, 2023 and December 31, 2025, with no company-owned schools (FDD Item 20, Table No. 1).
Who owns the building when you buy a Goddard School franchise?
In most new deals a developer owns it. Item 1 of the April 2026 FDD says Goddard Real Estate Development Company, an affiliate formed in March 2024, runs a Real Estate Support Program in which an approved third-party Real Estate Developer acquires the site, finances and manages construction, and leases the finished school to you. You run the school; someone else holds the deed.
The program is mandatory for new franchisees “unless we approve an exception in writing,” and exceptions go only to applicants with the experience and capital to manage site selection and construction themselves (Item 1). Existing owners adding a second school may ask to join but are not required to. The developer is not a Goddard affiliate, and neither Goddard entity guarantees its performance, financial condition or ability to finish construction.
| Party | What it signs or holds | What you pay it | FDD reference |
|---|---|---|---|
| Goddard Franchisor LLC | Preliminary Agreement (2 years), Franchise Agreement (15 years) | $135,000 license fee, $35,000 site development fee, 7% royalty | Items 5, 6, 17 |
| Goddard Real Estate Development Company, LLC | Project Management Agreement (Exhibit D-5, 2 years); coordinates sites and documents | $75,000 project management fee | Items 1, 5, 17 |
| Real Estate Developer (third party) | Letter of Intent (D-1), Real Estate Purchase Agreement (D-2), Assignment (D-3), Lease (D-4, 180 months) | Rent, monthly property tax share, lease deposit | Items 1, 7; Exhibit D-4 |
| Project management provider | Pre-construction and construction coordination | Paid through the $75,000 fee; unused balance refunded | Item 5 |
| Your separate property entity (owned-land route) | Option to Lease Agreement and Right of First Refusal in favour of Goddard | Land and construction costs in Item 7 Table 3 | Items 1, 7 Note 7.b |
Two clauses matter if you choose to own the land. The property must sit in an entity separate from the franchisee entity, and that owner must give Goddard an option to lease the premises when the Franchise Agreement ends plus a right of first refusal if the property is sold during the term (Item 7, Note 7.b, and the Preliminary Agreement). Item 8 adds that Goddard and its affiliates may earn revenue when they secure a site for a developer who then leases it to you.
What does the April 2026 Goddard FDD charge under each real estate route?
The fees paid to Goddard or an affiliate are the same in all three Item 7 tables, $261,500 to $368,000 according to the FDD cover page; the building lines are what move the total. A developer build-to-suit lease keeps construction inside the rent, a retrofit adds $702,000 to $3,300,000 of construction, and owning the land adds $815,000 to $1,600,000 for the site plus $3,500,000 to $5,500,000 to build.
| Item 7 line | Lease, landlord builds (Table 1) | Lease, you retrofit (Table 2) | Buy land and build (Table 3) |
|---|---|---|---|
| Initial license fee | $135,000 | $135,000 | $135,000 |
| Initial training and opening support | $35,000 to $42,000 | $35,000 to $42,000 | $35,000 to $42,000 |
| Initial marketing fee | $55,000 to $75,000 | $55,000 to $75,000 | $55,000 to $75,000 |
| Site development fee | $35,000 | $35,000 | $35,000 |
| Background checks | $1,500 to $6,000 | $1,500 to $6,000 | $1,500 to $6,000 |
| Lease deposit | $25,000 to $50,000 | $26,000 to $59,000 | none |
| Project management fee | $0 to $75,000 | $0 to $75,000 | $0 to $75,000 |
| Land acquisition | none | none | $815,000 to $1,600,000 |
| Building construction and site work | in rent | $702,000 to $3,300,000 | $3,500,000 to $5,500,000 |
| Building loan and finance costs | none | $30,000 to $220,000 | $200,000 to $300,000 |
| Construction manager; soil testing | none | none | $0 to $50,000; $0 to $5,000 |
| Furniture, fixtures and equipment | $243,000 to $307,000 | $243,000 to $307,000 | $243,000 to $307,000 |
| Playground equipment | $140,000 to $240,000 | $140,000 to $240,000 | $140,000 to $240,000 |
| Signs; security system | $28,000; $45,000 | $28,000; $45,000 | $28,000; $45,000 |
| Computer, IT security, phones, flat panels | $26,000 to $40,000 | $26,000 to $40,000 | $26,000 to $40,000 |
| Marketing materials and curricular resources | $15,000 | $15,000 | $15,000 |
| Miscellaneous opening costs | $120,000 to $135,000 | $120,000 to $135,000 | $120,000 to $135,000 |
| Additional funds, 3 months | $100,000 to $275,000 | $100,000 to $275,000 | $100,000 to $275,000 |
| Total | $1,003,500 to $1,503,000 | $1,736,500 to $5,032,000 | $5,493,500 to $8,908,000 |
Owning the land multiplies the high-end total almost sixfold versus a developer lease: $8,908,000 against $1,503,000. Source: Goddard FDD issued April 30, 2026, Item 7.
Which Item 5 fees shrink for veterans, multi-unit owners and buyers of existing schools?
Item 5 lists four reduced license fees: $60,000 for an existing franchisee opening another new school, $115,000 for honorably discharged veterans who own at least 50% (the $20,000 IFA VetFran discount), $40,000 for a buyer of an operating school, and a reduced fee on renewal. In 2025 franchisees paid new-school license fees of $60,000 to $135,000 and initial marketing fees of $51,711 to $75,000. Other veteran programs are compared in the veteran franchise discount research.
What do the developer lease and the $75,000 project fee commit you to?
The project management fee is $75,000, paid $30,000 when you sign the Preliminary Agreement and $45,000 once a site is secured under a purchase agreement or lease; Goddard Real Estate Development Company refunds any amount the outside project manager does not invoice (Item 5). The sample lease in Exhibit D-4 then fixes a 180-month term, with rent starting at licensing or shortly after occupancy.
| Lease or program term | What the April 2026 filing says | Where |
|---|---|---|
| Lease length | 180 months; must cover at least the 15-year franchise term | Exhibit D-4 Section 2; Item 7 Note 5 |
| Rent start | Earlier of your child care license date or 30 days after a permanent Certificate of Occupancy | Exhibit D-4 Section 4 |
| Permit deadline | Landlord must obtain approvals and permits within 180 days, or you may extend or terminate and recover sums paid | Exhibit D-4 Section 5(A) |
| Certificate of Occupancy | Landlord must obtain it within 6 months after construction permits issue | Exhibit D-4 Section 5(F) |
| Licensing change orders | Your cost, paid as a lump sum or as equal rent increases over the term | Exhibit D-4 Section 5(E) |
| Property tax, insurance, utilities | You pay 1/12 of estimated real property taxes monthly, plus building insurance and all utilities | Exhibit D-4 Section 6 |
| Personal guarantee | Landlords may require you and your spouse to sign or guarantee the lease and meet a net worth test | Item 7 Note 5; Item 11 |
| Decision rights | You approve the final lease and may decline any site, lease or developer presented | Item 1 |
The rent number itself is not in the FDD: Exhibit D-4 leaves it to a schedule negotiated per site, and Item 7 Note 5 says site development costs are “calculated into, and amortized over” the initial lease term. That means the build-to-suit route trades a lower Item 7 total for a 15-year occupancy cost that only the draft lease shows. Ask the developer for the rent schedule, the escalation rate and the total project cost used to set it before you sign the Franchise Agreement, because Item 11 gives you only 45 days after that signature to execute a lease or purchase agreement.
How long from the $30,000 deposit to the first enrolled child?
Goddard estimates 18 to 24 months from signing the Preliminary Agreement to opening (Item 11). The Preliminary Agreement itself runs 2 years, extendable by up to 1 year on written request at least 30 days before expiry, and the $30,000 deposit is not refunded if it lapses or you end it (Item 5). The steps below follow the order the filing sets.
- Preliminary Agreement: pay the $30,000 deposit, $1,500 per person for background checks and, in the program, $30,000 of the project management fee (Item 5).
- Site approval: Goddard expects to approve or reject a proposed site in about 60 to 90 days once it has the information it asks for (Item 11).
- Franchise Agreement: signed once a site is secured; $55,000 of the initial marketing fee is due at signing and the $45,000 project management balance after the site is secured (Item 5).
- Lease or purchase: must be signed no later than 45 days after the Franchise Agreement (Item 11, Section 6U).
- Permits: under the sample lease the landlord has 180 days to obtain approvals and permits (Exhibit D-4).
- Certificate of Occupancy: due within 6 months after construction permits (Exhibit D-4).
- Opening Invoice: issued around the Certificate of Occupancy; it carries the $105,000 license balance, the $35,000 training fee and the $35,000 site development fee (Item 5).
- Rent starts: at state child care licensing or 30 days after the permanent Certificate of Occupancy, whichever comes first (Exhibit D-4).
- Opening: 18 to 24 months after the Preliminary Agreement on Goddard's estimate (Item 11).
- Accreditation: earned through an approved national accreditor within 18 months after opening, at an estimated $2,850 to $3,850 (Item 8).
Item 20 shows the funnel narrowing at this stage: at December 31, 2025 applicants held Preliminary Agreements for 304 schools, 51 Franchise Agreements were signed but not yet open, and 20 Preliminary Agreement holders terminated during 2025.
How do Pennsylvania, New Jersey and Virginia rules size a 148-child school?
Item 1 describes a typical school of 10,000 square feet for about 148 children, or up to 168 in 12,500 square feet, but leaves the licensed number to each state. Pennsylvania, New Jersey and Virginia together held 154 of the 665 Goddard Schools at the end of 2025 (Item 20), and their ratio and floor-space rules differ enough to change staffing and room counts.
| Rule | Pennsylvania | New Jersey | Virginia |
|---|---|---|---|
| Infants | 1:4, group of 8 (birth to 1 year) | 1:4 (under 18 months) | 1:4, group of 12 (under 16 months) |
| Toddlers | 1:5, group of 10 (1 to 2 years); 1:6, group of 12 (2 to 3 years) | 1:6 (18 months to 2 1/2 years) | 1:5, group of 15 (16 to 24 months); 1:8, group of 24 (2-year-olds) |
| Preschool | 1:10, group of 20 (3 years to kindergarten) | 1:10 (2 1/2 to 4 years); 1:12 (4 years) | 1:10, group of 30 (3 years to school-age eligible) |
| Indoor space per child | 40 sq ft, excluding halls, bathrooms, offices, kitchens | 35 sq ft usable activity space (centers opened since July 1, 1989, 16 or more children) | 35 sq ft for applicants since June 1, 2008 |
| Outdoor space | not set in the sections read | not set in the section read | 75 sq ft per child on the playground at one time |
| Source | 55 Pa. Code §3270.51, §3270.4, §3270.61 | N.J.A.C. 3A:52-4.3(c), 3A:52-5.3 | 8VAC20-780-350, 8VAC20-780-310 |
The worked figures below apply each rule to three sample rooms. A Pennsylvania room of 12 children aged 1 to 2 breaks the 10-child group cap and has to be split; New Jersey's 1:6 ratio covers the same 12 toddlers with 2 staff. The full ratio rows sit in goddard-state-ratio-space.csv.
| Sample room | Pennsylvania | New Jersey | Virginia |
|---|---|---|---|
| 8 infants | 8 / 4 = 2 staff; 320 sq ft | 8 / 4 = 2 staff; 280 sq ft | 8 / 4 = 2 staff; 280 sq ft |
| 12 toddlers aged 18 months | 12 / 5 = 3 staff in 2 groups (cap 10); 480 sq ft | 12 / 6 = 2 staff; 420 sq ft | 12 / 5 = 3 staff (cap 15); 420 sq ft |
| 20 three-year-olds | 20 / 10 = 2 staff; 800 sq ft | 20 / 10 = 2 staff; 700 sq ft | 20 / 10 = 2 staff; 700 sq ft |
| Children per 1,000 sq ft of counted classroom space | 1,000 / 40 = 25 | 1,000 / 35 = 28 | 1,000 / 35 = 28 |
Item 7 Note 9 adds two state cost triggers inside the same filing: 40 states require supplemental equipment already priced in the $243,000 to $307,000 furniture line, and states that require food service (Alabama, Arizona, Illinois, Indiana, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, West Virginia and the District of Columbia) add about $10,000 that Item 7 leaves out. For Texas, Georgia and Florida rules and a four-brand Item 7 comparison, the multi-brand daycare franchise licensing guide covers them.
Item 1 also sets who runs the room: a Designated On-Site Owner holding at least 10% equity works full time, and a separate full-time director who is not a franchisee or owner must meet the state director rule. Item 1 puts staffing at 10 to 30 teachers, which the ratios above drive.
What keeps billing after the doors open?
Two percentage fees and one flat fee repeat every month. Item 6 sets the royalty at 7% of Gross Receipts and the TGS Marketing Fund fee at 4% of Gross Receipts, with Goddard free to collect a lesser rate without waiving the full one; the Wonder of Learning curriculum costs $700 a month plus tax. The franchise sales website lists the marketing fee as 2%, so ask which rate your Franchise Agreement will bill.
| Charge | Amount | Source |
|---|---|---|
| Royalty | 7% of Gross Receipts, withdrawn on the 3rd business day monthly; 2%, 4% and 6% steps in year one for qualifying existing owners | Item 6 |
| TGS Marketing Fund | 4% of Gross Receipts or a lesser rate Goddard sets | Items 6 and 11 |
| Marketing fee as advertised | 2%, “may be increased to a maximum of 4%” | Goddard franchise financial requirements page, accessed November 10, 2026 |
| Proprietary curriculum (Wonder of Learning) | $700 per month plus taxes | Item 6 |
| Franchise Management System (FMS) software | No fee at this time; Goddard reserves the right to charge one | Item 6 |
| Insurance | Estimated $13,300 to $65,800 per year, excluding workers' compensation | Item 6 |
| Convention registration | Currently $2,000 | Item 6 |
| Director Initial Training Cohort Program | $500 (range $500 to $5,000) | Items 5 and 6 |
| Audit | Greater of cost or $10,000 if underpayment exceeds 3% | Item 6 |
In 2025, about 75% of marketing fund spending went to media placement and promotional items and about 25% was retained by affiliates for production and staff costs, figures Item 11 labels unaudited. The 7% royalty can be set beside other systems in our franchise royalty rate dataset.
Buying a school that already operates: fees and transfer counts
Buying an operating school skips construction and the Preliminary Agreement, and the buyer signs a fresh 15-year Franchise Agreement (Item 5). Item 20, Table No. 2 counts 20 transfers in 2023, 19 in 2024 and 26 in 2025, with New Jersey alone recording 7 in 2025. The seller sets the price; the filing sets the fees below.
| Transfer charge | Amount | Paid by |
|---|---|---|
| Transfer initial license fee | $40,000 | Buyer |
| Initial training and transfer support | $25,000 ($15,000 for an existing franchisee) | Buyer |
| Transfer marketing fee | $15,000 or another amount Goddard sets | Buyer |
| Transfer fee | $5,000 | Seller |
| Transfer deposit | $2,500, excess refunded after 105 days | Seller |
| Background checks | $1,500 per person | Buyer or seller |
Lending data points the same way. SBA 7(a) and 504 records compiled from the SBA FOIA loan data show 291 7(a) loans and 54 SBA 504 loans under The Goddard School code S1753 from fiscal 2020 to June 30, 2026, and 41 of the 7(a) loans financed a change of ownership. Our franchise resale index and SBA franchise directory study hold the brand rows. Broker-listed resales are covered in the guide to buying a franchise for sale.
Where the 665 schools sit and what Items 19 and 20 disclose
Item 20 reports 665 franchised schools in 37 states and Washington DC at the end of 2025, after 24 openings, no terminations and one school that ceased operations for other reasons. Texas (68), New Jersey (66), Pennsylvania (57) and Ohio (49) lead; the state-by-state table for 2023 to 2025 is in goddard-item20-outlets-2023-2025.csv.
Ten states held 423 of the 665 Goddard Schools at the end of 2025, led by Texas with 68. Source: FDD issued April 30, 2026, Item 20, Table No. 3; full table in goddard-item20-outlets-2023-2025.csv.
| Item 20 measure | 2023 | 2024 | 2025 |
|---|---|---|---|
| Schools at start of year | 598 | 627 | 642 |
| Opened | 30 | 18 | 24 |
| Non-renewals | 1 | 1 | 0 |
| Ceased operations, other reasons | 0 | 2 | 1 |
| Schools at end of year | 627 | 642 | 665 |
| Transfers to new owners | 20 | 19 | 26 |
Item 19 is present: a Statement of Gross Revenue and EBITDA for 620 Mature Schools open more than 18 months and 37 New Schools, for the year ended December 31, 2025, with payroll and occupancy lines. This site does not republish those figures; read them in Item 19 of the current FDD and our Item 19 research explains how such statements are built. Item 20 also notes that current and former franchisees signed confidentiality clauses in the last 3 fiscal years, and lists the Great Schools Franchisee Owners Association, an AAFD chapter, as an independent owner group.
Older Goddard numbers set against the April 2026 filing
Several cost figures still circulating come from earlier FDDs, and one comes from the franchise sales site. The table sets each against the April 30, 2026 filing; the last row is a mismatch inside the FDD itself, where Table 2 and Note 7.a print different high ends for retrofit construction.
| Claim in circulation | April 2026 FDD | Item |
|---|---|---|
| A March 2024 cost article: land $450,000 to $1,200,000 | $815,000 to $1,600,000 | Item 7, Table 3 |
| Same article: construction $2,900,000 to $5,000,000 | $3,500,000 to $5,500,000 | Item 7, Table 3 |
| Same article: furniture, fixtures and equipment $319,000 to $460,000 | $243,000 to $307,000 | Item 7 |
| Same article: security system $15,000 | $45,000 | Item 7 |
| Franchise sales website: marketing fee 2% | 4% of Gross Receipts or a lesser rate | Items 6 and 11 |
| A broker directory: founded 1986 | System founded 1983; franchises offered from 1988 | Item 1 |
| FDD Table 2: retrofit construction up to $3,300,000 | Note 7.a and Note 14 say up to $3,600,000 | Item 7 |
Developer lease, retrofit or owned land: a decision table
The route follows from three facts you can check early: cash beyond the $350,000 liquidity and $500,000 net worth the franchise site lists, whether you want to hold real estate in a separate entity, and how much construction risk you can carry through an 18 to 24 month build. The rows below tie each situation to the Item 7 table and the clauses that follow from it.
| If your situation is | Route | Item 7 total | Check before signing |
|---|---|---|---|
| First school, no construction experience, capital near the published minimums | Real Estate Support Program, developer build-to-suit lease | $1,003,500 to $1,503,000 | Rent schedule and escalation in Exhibit D-4; personal guarantee; 45-day lease deadline |
| A suitable building already exists and the landlord will fund part of the work | Lease and retrofit | $1,736,500 to $5,032,000 | Who pays construction (Table 2 note); the $3,300,000 vs $3,600,000 high end |
| Capital to buy land and finance construction, wish to own the asset | Buy land and build, if Goddard grants an exception | $5,493,500 to $8,908,000 | Option to lease and right of first refusal; designated architect or $2,500 review fee; soil test |
| Already a Goddard owner in good standing | Additional new school | Same tables, $60,000 license fee | 10% ownership in both schools for 2 years; reduced royalty steps |
| Prefer an operating school | Transfer purchase | Price set by seller plus $80,000 of buyer fees | Item 20 transfer counts; confidentiality clauses; SBA change-of-ownership lending |
The $80,000 in the last row is the $40,000 transfer license fee, $25,000 training fee and $15,000 transfer marketing fee from Item 6. Lender options for these amounts are compared in our franchise financing guide, and how to read each FDD item is set out in the franchise disclosure document guide.
How we compiled this
We read the full Goddard Franchisor LLC FDD issued April 30, 2026 from Minnesota CARDS, including the sample lease in Exhibit D-4, and seven state regulation sections from Pennsylvania, New Jersey and Virginia, all accessed in November 2026. SBA loan counts come from our own compilation of SBA FOIA data. Item 19 figures were excluded under this site's rule, and no franchisee names were used. This page is not legal, financial or investment advice. Category context sits in the kids education franchise statistics report.
Frequently asked questions
How much does it cost to open a Goddard School franchise?
The FDD issued April 30, 2026 gives three Item 7 totals: $1,003,500 to $1,503,000 when a landlord or developer builds and leases the school, $1,736,500 to $5,032,000 when you lease a building and pay for the retrofit, and $5,493,500 to $8,908,000 when you buy land and build. Of that, $261,500 to $368,000 goes to Goddard or an affiliate.
How much do Goddard School owners make?
This site does not publish earnings figures. Owner results depend on enrollment against the state-licensed capacity, payroll at state ratios, rent under a 180-month lease, and fees of 7% royalty plus up to 4% marketing in Item 6. Goddard includes an Item 19 statement covering 620 mature and 37 new schools for 2025; read it in Item 19 of the current FDD.
Who owns The Goddard School?
The franchisor is Goddard Franchisor LLC, a Delaware company formed July 7, 2022. Its indirect parent Goddard Systems, LLC was acquired on June 30, 2022 by SP Goddard Buyer LLC, which is controlled by investment funds managed by Sycamore Partners Management, L.P., according to Item 1 of the April 2026 FDD. All 665 schools are franchised.
Do you need a teaching degree to own a Goddard School?
The FDD does not require one for the owner. Item 15 requires a Designated On-Site Owner with at least 10% equity working full time, and Item 1 requires a separate full-time director who is not an owner and who meets the state director qualifications. The owner must be a U.S. citizen or permanent resident unless Goddard waives it.
How long does it take to open a Goddard School?
Goddard estimates 18 to 24 months from signing the Preliminary Agreement to opening, per Item 11. The Preliminary Agreement lasts 2 years with up to a 1-year extension, site approval takes about 60 to 90 days per proposed site, and a lease or purchase agreement must follow within 45 days of the Franchise Agreement.
Is there a Goddard School franchise for sale?
Existing schools change hands regularly: Item 20 counts 26 transfers to new owners in 2025, 19 in 2024 and 20 in 2023. A buyer pays a $40,000 transfer license fee, a $25,000 training fee and a $15,000 transfer marketing fee, and signs a new 15-year Franchise Agreement. Goddard may also offer affiliate-held schools for sale or lease.
What is the Goddard Franchise Management System?
Franchise Management System, or FMS, is the name Item 6 of the April 2026 FDD gives Goddard’s proprietary software. Goddard does not charge a fee for it at this time but reserves the right to add a reasonable license fee on 30 days’ notice. Separate rules cover the required computer system, IT security and a $700 monthly curriculum platform.
Sources
- Goddard Franchisor LLC, The Goddard School Franchise Disclosure Document, issued April 30, 2026, Minnesota CARDS, accessed November 10, 2026.
- The Goddard School franchise, Financial Requirements page, accessed November 10, 2026.
- 55 Pa. Code §3270.51, staff:child ratios, §3270.4 definitions and §3270.61 indoor space, Pennsylvania Code and Bulletin, accessed November 10, 2026.
- N.J.A.C. 3A:52-4.3 and N.J.A.C. 3A:52-5.3, Legal Information Institute, accessed November 10, 2026.
- 8VAC20-780-350 and 8VAC20-780-310, Virginia Administrative Code, accessed November 10, 2026.
- SBA 7(a) and 504 FOIA loan data, files as of June 30, 2026, via our SBA research compilations.