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Childcare

Lightbridge Academy Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$1,067,233 – $3,120,400

Franchise Fee

$40,000

Royalty Rate

7.0%

Initial Investment Range

Low: $1,067,233 High: $3,120,400

The total initial investment to open a Lightbridge Academy franchise ranges from $1,067,233 to $3,120,400, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.

Midpoint estimate: $2,093,816

Franchise Fee

$40,000

One-time initial fee

The Lightbridge Academy franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Lightbridge Academy brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

7.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee 7.0 PCT Reduced to 4% of Gross Revenues during the first six (6) months your Center is open for business. Payable on the 5th day of each month. Excludes sales tax, customer refunds/adjustments, and revenue donated to Lightbridge Foundation.
Brand Development Fund 2.0 PCT Up to 3% of Gross Revenues. Currently 2% of Gross Revenues. Due at the same time and in the same manner as Royalty Fee.
Advertising Cooperative 2.0 PCT As determined by the cooperative, up to 2% of Gross Revenues. As cooperative directs. See Note 5.
Minimum Local Advertising Expenditure 6000.0 FIXED Minimum of $6,000 per quarter on local advertising initiatives approved by franchisor. Amounts contributed to Advertising Cooperative credited to this requirement. See Note 6.
Special Promotional Programs N/A VARIABLE Cost of special promotional campaigns or open houses. Amount spent credited toward quarterly Minimum Local Advertising Expenditure. See Note 6.
Technology Fee 400.0 FIXED Currently $400 per month. Covers maintenance and updates for website, proprietary software, tablets, and other technology. Paid to us or approved supplier(s). May be increased annually. See Note 11.
Transfer 25.0 PCT 25% of then-current initial franchise fee; however if franchisor (a) introduces the transferee or (b) if the transferee is an existing center employee, 10% of the sales price. Prior to transfer. See Item 17.
Transfer of Multi-Unit Operating Agreement 5000.0 FIXED $5,000; however if franchisor (a) introduces the transferee or (b) if the transferee is an existing center employee, 10% of the sales price. See Item 17.
Renewal 10.0 PCT 10% of then current initial franchise fee. Due at the time of execution of franchise agreement for renewal term. Only if franchisee executes a franchise agreement for renewal term.
Audit N/A VARIABLE Our audit costs upon completion of inspection/audit. Franchisee must pay if understated Gross Revenues by 2% or more, or failed to submit complete reports for any 2 reporting periods within 12 months. See Note 7.
Collection Costs, Attorneys' Fees and Interest 18.0 PCT Interest on overdue amounts at the lesser of 18% interest per year or the highest lawful interest rate, plus costs of collection, attorneys' fees and court costs. See Note 8.
Initial Training 2000.0 FIXED Currently $2,000 per person for persons beyond first 4 (or 2 if existing franchisee opening additional Center). Franchisee also pays personal expenses including transportation, lodging, meals and salaries. See Note 9.
On-site Training and Supplemental Training 500.0 FIXED Currently $500 per person per day for refresher or supplemental training. Franchisee also pays personal expenses including transportation, lodging, meals and salaries for employees.
Indemnification N/A VARIABLE Franchisee must defend, indemnify and hold franchisor harmless from all fines, suits, proceedings, claims, demands, obligations or actions. See Note 10.
Bank Charges and Administrative Costs N/A VARIABLE Charged to cover bank charges and administration costs if EFT attempt unsuccessful, account closed, or payment returned unpaid.
New Product or New Supplier Approval 1500.0 FIXED $1,500 payable to franchisor when incurred. For approval of new service, product or supplier under published procedures. See Item 8.
Non-Compliance Fee 1500.0 VARIABLE Escalating structure: $1,500 (1st letter), $3,000 (2nd letter), $5,000 (3rd letter), $10,000 (notice of default). For non-compliance with System Standards. See Note 14.
De-Identify Premises 15.0 PCT Costs plus 15% administrative fee if franchisee doesn't de-identify premises following expiration or termination of Franchise Agreement.
Insurance 15.0 PCT Cost of insurance plus 15% administrative fee if franchisor obtains insurance on franchisee's behalf due to franchisee's failure. Paid to insurers. See Item 7.
Late Crisis Notification Fee 5000.0 FIXED Currently $5,000 per occurrence plus $500 per day beginning on second day. Payable if franchisee fails to alert franchisor within 24 hours of potential crisis situation. See Note 12.
Center Management Fee 10.0 PCT Currently 10% of Center's monthly Gross Revenues if franchisor must operate the Center. Franchisee also pays expenses and other fees such as royalties. Applies when Center is in jeopardy or franchisee is in default.
Relocation Fee 40000.0 FIXED Currently $40,000 upon approval of relocation request. Not franchisor's exclusive remedy if franchisee fails to open new location.
Annual Franchisee Conference 350.0 FIXED Currently $350.00 for attendance at Annual Franchisee Conference. Fee payable to franchisor.
Late Reporting Fee 12.0 PCT 12% of the last Royalty payment made for each month franchisee fails to submit required report. See Note 3.
Enroll 360 299.5 VARIABLE Currently $250-$349 per month. Optional paid service for online lead nurturing and conversion. Includes scheduling tool, Chatbot, LiveChat, and dedicated Customer Care Specialist. Fee subject to adjustment.
Website Hosting N/A VARIABLE Payable to franchisor or approved vendor if determined necessary to charge separate website hosting fee. Currently not charged.
Mobile Tablet Service and Support 90.0 FIXED Currently $90 per month for unlimited number of tablets per center. Tablets must be purchased through approved vendors (Apple and Verizon). $50 one-time fee per tablet if purchased from unapproved vendor. See Note 13.
Advertised Telephone Number 10.0 FIXED Currently $10 per month.

What You Get

Category

Childcare

Franchise Score

82

out of 100

Lightbridge Academy operates premium early childhood education centers providing preschool and childcare services for infants through pre-K students. The franchise emphasizes a research-based curriculum and safe, nurturing learning environments.

Financial Performance (Item 19)

Median Revenue

$2,276,273

per year, per location

Mean Revenue

$1,915,012

per year, per location

Profitability Estimate

Estimated Owner Profit

$25,039

per year

Profit Margin

1.1%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 83.6 years

Based on midpoint investment of $2,093,816 and estimated annual owner profit of $25,039.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.3%

Low risk — below industry average

Net Unit Growth

+17 units

From 2021 to 2023

Unit Activity History

Year Start Opened Closed Transfers End
2021 38 +8 46
2022 46 +4 50
2023 50 +6 -1 55

Is a Lightbridge Academy Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Lightbridge Academy franchise opportunity:

Overall Score

82/100

Strong opportunity

Est. Payback Period

83.6 yrs

Longer payback

Risk Level

Low

0.3% annual closure rate

Lightbridge Academy scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,276,273 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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