How much does it cost to open a Primrose Schools franchise?

The total initial investment for a Primrose Schools franchise ranges from $742,900 to $8,595,000. This includes the franchise fee of $80,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Primrose Schools franchise?

Primrose Schools franchisees pay a 7.0% royalty fee and a 2.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Primrose Schools franchise?

Based on Item 19 financial performance data, the median Primrose Schools franchise generates $2,084,533 in annual revenue. Estimated owner profit is approximately $635,783.

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Childcare 525 Units

Primrose Schools Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$742,900 – $8,595,000

Franchise Fee

$80,000

Royalty Rate

7.0%

Initial Investment Range

Low: $742,900 High: $8,595,000

The total initial investment to open a Primrose Schools franchise ranges from $742,900 to $8,595,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $80,000.

Midpoint estimate: $4,668,950

Franchise Fee

$80,000

One-time initial fee

The Primrose Schools 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 Primrose Schools 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
Continuing Services and Royalty Fee	7.0	PCT	Payable monthly on the 10th day of the next month. Gross Revenues includes all revenues from tuition, field trips, student screening, sale of apparel and novelties, photography charges and commissions, and condemnation awards, less sales/use taxes paid to authorities.
Primrose® Brand Fund Fee	2.0	PCT	Currently 2% of Gross Revenues, but may be increased by franchisor at any time up to a maximum of 3% of Gross Revenues. Payable monthly on the 10th day of the next month.
Local Advertising	1.0	PCT	1% of Gross Revenues or $1,000, whichever is greater. Must spend on approved local community awareness, advertising, public relations, community involvement activities, sponsorships, business partnerships, and promotions.
Cooperative Contributions	1.0	PCT	1% of Gross Revenues, unless Cooperative members agree to increase up to 2%. Required if franchisor establishes a Cooperative in franchisee's market. Currently, all markets with five or more Facilities will have a Cooperative.
Academic Curriculum Material License Fee	N/A	VARIABLE	$450-$480 per certain specified classrooms plus $1,400-$1,600 per Facility annually. Payable on demand if franchisor requires licensing of academic curriculum materials. Fee may not be increased in any calendar year by more than 25% of then-current fee.
Cognia™ Accreditation	900.0	FIXED	Currently $900; increasing to $1,100 on July 1, 2025. Required to maintain Cognia™ accreditation. Fees will not exceed 110% of franchisor's actual costs and expenses.
Late Fee	1.5	PCT	Interest at 1.5% per month, plus a 5% late fee on past due amounts, along with NSF charges. Applies to all payments to franchisor.
Transfer Fee (Control Transfer)	40.0	PCT	Payable at closing for Control Transfer (transfer of interest in Franchise Agreement, Facility/assets, or change in control of Entity). Inspection fee of $1,000-$3,000 may also apply.
Transfer Fee (Non-Control Transfer)	3250.0	FIXED	Currently $3,250 for each new Owner added and $1,250 for each Owner removed. May be increased in any calendar year by up to 25% of then-current fee.
Transfer Training and Support Fee	35000.0	FIXED	Currently $35,000 (same as Initial Training Fee). $5,000 due at least 10 days prior to training, balance at closing. Reduced to $18,000 for transfers to existing franchisees meeting training requirements. May not be increased more than 25% per calendar year.
Successor Term Fee	10.0	PCT	Payable prior to expiration of the initial term if entering into a successor term.
Successor Term Training Fee	5000.0	FIXED	Currently $5,000 for training two Owners. $1,250 per additional Owner. Payable within one year before or after expiration of initial term. May not be increased more than 25% per calendar year.
Initial Training Fee for Subsequent or Replacement Trainees	3500.0	FIXED	Currently $3,500 per trainee for subsequent or replacement trainees (other than training provided in conjunction with a transfer). May not be increased more than 25% per calendar year.
Additional Training Fee	100.0	FIXED	Currently $100 per hour per trainer, not to exceed $750 per day per trainer, plus costs/expenses. Will not exceed $1,500 per day per trainer. Payable for additional training to existing or future employees.
Conference and Meeting Registration Fees	N/A	VARIABLE	Currently ranges from $500 to $1,260 per attendee for National Conference. May be required to attend. On-site registration may be higher than pre-registration. May not be increased more than 25% per calendar year.
Training Programs Fee	N/A	VARIABLE	Currently ranges from $500 to $1,260 per attendee for optional or mandatory training programs, seminars, or workshops. May be required to attend and pay whether or not actually attend. May be increased by up to 25% per calendar year.
Additional Consulting Services Fees	750.0	FIXED	Currently $750 per representative per day, plus travel and living expenses. Will not exceed $1,500 per day. For consultation services beyond support services under Franchise Agreement.
Temporary Management Fee	750.0	FIXED	Currently $750 per representative per day, plus costs/expenses. Will not exceed $1,500 per representative per day. Applies if franchisor operates franchise after default (not cured within 30 days) or if On-Site Owner is absent, incapacitated, or deceased.
Non-Compliance Fees	N/A	VARIABLE	Up to $1,000 per single violation. May be charged repeatedly (as frequently as daily) if non-compliance is ongoing. Varies based on severity, number, and repetition of violations. Specified in Confidential Manuals.
Remedial Expenses	110.0	PCT	Payable if franchisee fails to correct maintenance issues within 30 days and franchisor enters Facility to make repairs or improvements.
Follow-up Inspection Fee	750.0	FIXED	Currently $750 per representative per day, plus costs/expenses. Will not exceed $1,500 per day. For follow-up inspection to review corrective actions to cure deficiencies.
Insurance Procurement Fee	150.0	PCT	Payable if franchisor procures insurance on franchisee's behalf after franchisee fails to do so.
Product, Service, or Supplier Review Fee	750.0	FIXED	Currently $750 per representative per day, plus costs/expenses. Will not exceed $1,500 per day. For testing or reviewing unapproved Goods or suppliers (including insurance companies).
Additional Expenses	750.0	FIXED	Currently $750 per representative per day, plus costs/expenses. Will not exceed $1,500 per day. For assistance beyond obligations, review/approval requests, or franchisee default.
ACH Fees	N/A	VARIABLE	Royalty and Brand Fund Fees collected via ACH on 10th of each month and on 20th for franchisees with outstanding Notes. Other amounts collected via ACH as they come due.
Indemnification	N/A	VARIABLE	Payable if franchisor incurs losses due to franchisee's operation, breach of agreement, or acts/failures of franchisee's employees.
Damages Upon Expiration or Termination	N/A	VARIABLE	Payable if franchisor terminates due to franchisee default and incurs damages/expenses, or if franchisee fails to adhere to post-termination/expiration covenants.
Facility Expansion Fee	10000.0	FIXED	Payable upon franchisor's approval if franchisee wishes to expand the size of the Facility.
Relocation Fee	N/A	VARIABLE	Payable if franchisee relocates the Facility to a new site. See Item 5 for expenses related to developing a new Facility.
Rent Guarantee Deposit	N/A	VARIABLE	Payable if franchisee refinances or takes on additional debt during Rent Guarantee Agreement period. Refunded upon expiration, less amounts paid to third parties under agreement.
Lease Review Fee	500.0	FIXED	Currently $500 per hour for lease consultations. Payable if franchisor engages attorneys to review proposed lease, lease renewal, or guarantee (not applicable under Site First Program). Will not exceed $500 per hour.

What You Get

Financial Performance (Item 19)

Median Revenue

$2,084,533

per year, per location

Mean Revenue

$2,728,570

per year, per location

Profitability Estimate

Estimated Owner Profit

$635,783

per year

Profit Margin

30.5%

of revenue

Estimation method: disclosed

Estimated ROI (Simple Payback): 7.3 years

Based on midpoint investment of $4,668,950 and estimated annual owner profit of $635,783.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.1%

Low risk — below industry average

Net Unit Growth

-465 units

From 2022 to 2025

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	465	+19	-1	—	483
2023	483	+23	—	—	505
2024	505	+21	—	—	525
2025	—	+35	—	—	—

Is a Primrose Schools Franchise Worth It?

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

Overall Score

74/100

Strong opportunity

Est. Payback Period

7.3 yrs

Longer payback

Risk Level

Low

0.1% annual closure rate

Primrose Schools scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,084,533 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.