Franchisee Satisfaction Report

The Company

Goddard Systems, Inc. (GSI) is the franchisor of The Goddard School. GSI is the acknowledged leader in the childcare franchise segment, awarding franchises to qualified applicants who want to go into business for themselves, not by themselves. Goddard School franchisees benefit from the extensive support structure that Goddard Systems, Inc. has developed over nearly 25 years in franchising. Our goal as a franchisor is to provide our franchisees with an exceptional foundation to ensure consistency of programs and services for our customers as well as to provide guidance as they achieve their personal goals as business owners.

Goddard Systems, Inc. (GSI) was recently named the #1 Childcare Franchise in the United States by Entrepreneur magazine for the twelve consecutive year (January 2013) and one of the Top 200 Franchise Systems (in worldwide sales) by Franchise Times for the sixth consecutive year (October 2012). Headquartered in King of Prussia, Pennsylvania, GSI is expanding The Goddard School® network throughout the United States. GSI currently licenses 390+ franchised schools with more than 45,000 students in 35 states.

Each Goddard School shares the same passion and vision for early childhood education that has been set forth by GSI. To support our schools and their families, our GSI Corporate Communications team goes far beyond standard daycare centers to provide the support materials necessary to achieve success.

Corporate Communications and Support Teams:
Real Estate & Site Development
Advertising & Marketing
Operations
Quality Assurance & Training
Information Technology
Curriculum & Compliance
Goddard Systems University
Educational Advisory Board

CEO, Joseph Schumacher, has committed GSI to providing a level of quality that surpasses anything currently available in the industry. As a result, The Goddard School has earned AdvancED and Middle States accreditation by demonstrating excellence in early childhood education. Our Goddard School programs meet or exceed quality standards and support the emotional, social, behavioral and physical development of every child.

MARKET FACTS

• 14.4 million children in the United States are in some form of childcare arrangement and fees for these services have been rising steadily over the past several years.
• Top-line revenue gains for the industry have been in the 10% range since 1999.
• In 2007, the childcare industry was valued at nearly $40 billion.
• The industry is expected to grow 9.2% annually
• America spent $58.6 billion on child care in 2009, predicted to be at $71 billion by 2013
• Receipts are predicted to grow by 5.4% yearly
  ^{Source: Marketdata Enterprises, Inc.}

MARKET FOR CHILDCARE DEMAND DRIVERS

• 3.94 million births per year 4 million births per year
• 65% of mothers with children under age 6 are in the workplace
• 78% of mothers with children between ages 6 and 17 are in the workplace
  _{Source: Marketdata Enterprises, Inc.}

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