FRANdata Review: Celebree’s Unit-Level Financial Performance
Back in January of this year, Celebree teamed up with FRANdata, the franchise industry’s leading independent research and advisory firm. With access to the largest database of franchisor data, FRANdata conducts intensive studies of franchise business models to reveal their comparative performance at the brand level. FRANdata’s research for Celebree provided market insights in five key areas, which we’ve condensed into a new, five-part blog series.
The fifth and final blog edition focuses on the unit-level financial performance of Celebree School, and how it compares to our direct and indirect franchise peers.
Celebree Average Unit Revenue vs. Childcare Competitors
Studying the data, FRANdata’s research revealed that Celebree Schools experience rapid sales growth in their first three years of operation. The average unit revenue increased 15.8%, from $1.2M to $1.8M. Direct childcare franchising peers fared much worse, with an overall revenue increase of 3.2%, from $1.6M to $1.7M. Equally impressive was Celebree’s average unit profitability, which was double the growth rate of its competition by a margin of 30.7% to 15.3%:
Sales to Investment Ratios
Compared to other childcare franchise operations, Celebree’s sales-to-investment ratio of 1.62 reveals that for every dollar invested, a return of $1.62 in sales is returned. And when compared to emerging brands across multiple industries, Celebree’s ratio of 1.62 led the entire pack:
How Celebree Stacks Up Against Industry Peers
In three separate comparisons which include sales revenue, three-year growth of average revenue, and EBITDA margins, a review of these graphs shows the performance potential of Celebree’s franchise opportunity compared to emerging brands with similar startup costs, in multiple industry categories:
This edition concludes the five-part blog series, showcasing the results of FRANdata’s analytical research for Celebree School.
As a brand with over 25 established locations, we’ve always been aware of the financial performance potential. But it’s most helpful to see exactly how that potential stacks up against Celebree’s direct and indirect competition in the franchising arena. And it also never hurts to have the ROI of our business model earn valuable third-party validation from the industry’s leading franchise research and development organization.