The Goddard School NNN Property Lease: Pros, Cons, and History

The Goddard School

Interested in selling your the Goddard school NNN property or the Goddard school ground lease property and wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market The Goddard School NNN property for sale or The Goddard School ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the clarity needed to make informed decisions regarding the sale of your The Goddard School NNN property or the inclusion of a The Goddard School ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market The Goddard School properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of 2025, The Goddard School operates over 640 schools across 38 U.S. states, making it one of the largest premium early childhood education franchises in the country. Most locations are concentrated in suburban and metropolitan markets.

Revenue and income

The Goddard School is a privately held company, so total system-wide revenue is not publicly disclosed. However, according to franchise disclosure data, mature Goddard Schools generate an average annual gross revenue of approximately $2.4 million per location, with average EBITDA margins around 22%, reflecting strong unit-level performance.

Future plans

The Goddard School continues to expand aggressively across the United States. In 2025, the company signed more than 60 new franchise agreements and is entering new markets such as Utah and Brooklyn, New York, with multiple openings planned through 2026. The brand also continues to invest in curriculum innovation, digital parent communication tools, and operational technology.

Corporate vs. franchise

100% of Goddard Schools are franchised. The system does not operate company-owned schools. Franchisees pay an initial franchise (license) fee of approximately $135,000, along with an ongoing royalty fee of 7% of gross receipts and a marketing fund contribution of 4% of gross receipts.

Additional information – Goddard Properties

The Goddard School was founded in 1988 in King of Prussia, Pennsylvania.
The brand is operated and managed by Goddard Systems, LLC, which oversees franchise development and curriculum standards.
- The Goddard School is known for its Wonder of Learning™ curriculum, which blends play-based learning with STEAM, social-emotional development, and academic readiness.
The company is privately held and remains headquartered in King of Prussia, Pennsylvania.

Goddard School History

The Goddard School was founded in 1988 by Lois Goddard Haines in King of Prussia, Pennsylvania, with the goal of providing a higher-quality early childhood education experience that nurtures both academic and social development. From its beginnings as a single preschool, The Goddard School grew by adopting a franchise-based model, allowing the brand to expand rapidly while maintaining consistent educational standards. Central to its growth is the Wonder of Learning™ curriculum, which blends play-based learning with structured academic instruction and social-emotional development. Over the years, The Goddard School has become a nationally recognized leader in early childhood education, trusted by families for its focus on safety, innovation, and individualized learning. Today, The Goddard School operates hundreds of locations across the United States and continues to evolve by investing in curriculum advancement, teacher training, and parent engagement tools.

Why Invest in Ground Lease and NNN Lease of The Goddard School?

Investing in The Goddard School’s ground lease and triple net (NNN) lease properties offers several attractive advantages for real estate investors:

1) Goddard School NNN Property Investment: Stable income

The Goddard School operates within the essential-services sector of early childhood education, which tends to be resilient across economic cycles. Long-term ground and NNN leases provide consistent, predictable cash flow supported by tuition-based revenue.

2) Goddard School NNN Property Investment: Established and recession-resilient tenant

With decades of operating history and a strong national reputation, The Goddard School is a well-recognized and trusted brand among families. Demand for quality childcare remains steady, reducing the risk of vacancy or lease interruption.

3) Goddard School NNN Property Investment: Low management responsibility

Under ground lease and NNN structures, the tenant is typically responsible for taxes, insurance, maintenance, and operating expenses, allowing investors to enjoy truly passive ownership with minimal landlord involvement.

4) Goddard School NNN Property Investment: Favorable lease terms

Goddard School leases often feature long initial terms (15–20+ years) with scheduled rent escalations, providing income growth and protection against inflation over the life of the lease.

5) Goddard School NNN Property Investment: Strong real estate fundamentals

Goddard Schools are usually located in affluent suburban neighborhoods with strong demographics, including high household incomes and family populations. These locations support long-term real estate value and enhance resale demand among institutional and private investors.

Pros and Cons of The Goddard School Ground Lease and NNN Lease Investment

Pros:

Stable income from an essential-service tenant – Early childhood education is a need-based service, supporting consistent occupancy and reliable rent payments.
Established and trusted brand – The Goddard School’s strong national reputation lowers vacancy risk and enhances tenant stability.
Minimal management responsibility – Under ground and NNN lease structures, the tenant typically handles taxes, insurance, and maintenance, reducing landlord involvement.
Long-term lease stability – Goddard School leases often include long initial terms with rent escalations, providing predictable income and inflation protection.

Cons:

Lease renewal risk at expiration – If the school does not renew, re-tenanting a purpose-built childcare facility may require time and capital.
Dependence on franchisee performance – Although backed by a strong brand, individual locations rely on the operational success of the franchisee.
Specialized property use – Childcare facilities are highly specific in design, which can limit alternative uses without conversion costs.
Limited owner control – Ground and NNN leases restrict landlord involvement in daily operations and property-level decisions.
Economic and regulatory exposure – Changes in local demographics, childcare regulations, or economic conditions can impact long-term performance.

Thorough due diligence—focusing on franchisee strength, lease structure, site demographics, and local licensing requirements—is essential. Investors should consult real estate and financial professionals to ensure the investment aligns with their objectives and risk tolerance.

MarketWatch: The Goddard School