Willowbrae Academy

## Executive Summary

Willowbrae Academy is a childcare franchise originally launched in Canada in 2011, with over 50 Academy locations across Canada since 2012. The franchise expanded to the United States in February 2025 through W&M Franchising USA, Ltd., a Texas corporation. Willowbrae Academy offers comprehensive early childhood education with a focus on nurturing environments and quality care.

## Investment Overview

| Category | Amount | |----------|--------| | **Initial Franchise Fee** | $85,000 | | **Total Initial Investment** | $2,401,500 - $3,987,000 | | **Franchisor Fees** | $870,000 - $1,210,000 | | **Royalty Fee** | 6% of monthly gross income | | **Marketing Fee** | 1% of monthly gross income |

### Investment Includes - Franchise fee and licensing - Site selection and design support - Facility buildout (leasehold improvements) - Furniture, fixtures, and equipment (FFE) - Safety and educational compliance - Onboarding and training - Access to proprietary Willowbrae products

## Training and Support

Willowbrae Academy provides franchisee support:

- **Site Selection:** Assistance identifying optimal locations - **Design Support:** Classroom design aligned with standards - **Onboarding:** Comprehensive initial training - **Franchising Resources:** Access to operational systems - **Proprietary Products:** Willowbrae educational materials - **Ongoing Support:** Continuous operational guidance

## Corporate Information

- **U.S. Entity:** W&M Franchising USA, Ltd. - **Incorporation:** Texas corporation, January 19, 2024 - **Headquarters:** 18 South Main Street, Suite 700, Temple, Texas 76501 - **U.S. Franchising Start:** February 21, 2025 - **Canadian Parent:** W&M Childcare Franchising Inc. (since 2012) - **Canadian Locations:** 50+ Academies

## Financing Options

Willowbrae Academy helps qualified candidates through:

- **SBA Loans:** Lower interest rates and extended repayment terms - **HELOC:** Home Equity Lines of Credit - **Investor Partnerships:** Joint ventures (advantageous for multi-unit) - **Third-Party Financing:** Available through lending partners

## Network Statistics

- **Canadian Launch:** 2011 (franchising since 2012) - **U.S. Launch:** February 2025 - **Total Canadian Locations:** 50+ - **U.S. Locations:** New market (2025) - **Geographic Focus:** Texas headquarters for U.S. expansion

## Competitive Analysis

### Strengths - Proven model with 50+ Canadian locations over 12+ years - Competitive 7% combined royalty/marketing fees - Comprehensive site selection and design support - Multiple financing options including SBA - Established operational systems from Canadian success - Texas headquarters positions for Sun Belt expansion

### Weaknesses - Very new to U.S. market (February 2025) - High investment ($2.4M-$4M) is substantial - No U.S. track record yet - Canadian success may not translate directly - No Item 19 U.S. financial data available yet - Limited U.S. brand recognition

### Key Competitors - The Goddard School (established U.S. brand, 600+ locations) - The Learning Experience (600+ U.S. locations) - Primrose Schools (comparable investment level) - Celebree Schools (regional player) - KinderCare (corporate competitor)

## Risk Factors

1. **Brand New U.S. Market Entry:** No U.S. operating history 2. **High Investment:** $2.4M-$4M is substantial capital commitment 3. **Unproven U.S. Model:** Canadian success may not translate 4. **No U.S. Item 19:** Financial performance data not yet available 5. **Staffing Challenges:** Childcare industry faces teacher shortages 6. **Regulatory Differences:** U.S. state licensing differs from Canada 7. **Competition:** Entering market with established competitors

## Investment Recommendation

**Rating: SPECULATIVE OPPORTUNITY - EARLY ADOPTER RISK**

Willowbrae Academy brings 12+ years of Canadian childcare success (50+ locations) to the U.S. market. The established operational systems and financing support provide infrastructure for growth.

However, the February 2025 U.S. launch means franchisees are essentially ground-floor adopters with no U.S. operating history to reference. The $2.4M-$4M investment requires substantial capital commitment for an unproven U.S. model.

**Ideal Candidate Profile:** - Comfortable as early U.S. market adopter - $500K+ liquid capital available - Net worth of $1.5M+ recommended - Experience with childcare or business management - Located in or near Texas initially - Patient for brand building in new market - Strong local real estate connections

**Due Diligence Recommendations:** 1. Visit Canadian Willowbrae locations if possible 2. Interview Canadian franchisees about performance 3. Understand differences between Canadian and U.S. markets 4. Evaluate Texas and regional childcare competition 5. Assess real estate availability in target market 6. Consult with franchise attorney experienced with new market entries