Complete investment analysis based on official FDD data
Total Investment
$780,799 – $1,477,299
Franchise Fee
$60,000
Royalty Rate
7.0%
The total initial investment to open a The Learning Experience franchise ranges from $780,799 to $1,477,299, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $60,000.
Midpoint estimate: $1,129,049
$60,000
One-time initial fee
The The Learning Experience 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 The Learning Experience brand and is included in the total initial investment range above.
Royalty Fee
7.0%
of gross revenue
Ad/Marketing Fund
1.0%
of gross revenue
Total Ongoing Fee Burden: 8.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalties | 7.0 | PCT | Gross Revenue includes all revenue related to the Center, excluding refundable registration deposits, uncollectible debts, taxes collected and paid to taxing authority, and tuition credits for franchisee and staff children not to exceed 3% of Gross Revenues. |
| Brand Awareness Fund | 1.0 | PCT | Currently 1% but franchisor has the right to increase up to 2.5% of Gross Revenue. Franchisor deducts 5% per month of monthly billing for administrative services to the Fund. Fee was waived prior to September 2009. |
| Software Service Fee | 525.0 | FIXED | Payable for general software support, includes 2 hours of telephone support per month. Franchisor has right to increase fee periodically, no more than 5% per year. |
| L.E.A.P. Interactive Monthly Fee | 249.0 | VARIABLE | $249 service fee plus $2.58 to $6.17 per child per month for L.E.A.P. Interactive curriculum (printed material costs). Flat fee payable regardless of number of whiteboards. Franchisor has right to increase no more than 5% per year. |
| Lease Administration Fee | 1.8 | VARIABLE | Greater of: (a) 8% of annual base rent; or (b) $1.80 per square foot of the Center each year. Payable in prorated monthly payments. Compensates franchisor and affiliates for potential liability to Landlord under the Lease. |
| Transfer Fee | 25000.0 | FIXED | Payable upon transfer of Center. May be partially refunded if franchisor withholds/denies consent after deducting direct costs. Not charged if franchisee dies and heirs are approved as transferees. Certain ownership changes are not considered transfers. Fee not adjusted during first 5 years of Franchise Agreement. |
| Renewal Expenses | N/A | VARIABLE | Franchisor does not charge a renewal fee but franchisee may incur other charges in order to renew. |
| Audit Fee | N/A | VARIABLE | If underpayment exceeds 3%, franchisee reimburses all audit expenses within 30 days plus must have annual financial statements audited at own expense for minimum 5 years. If underpayment exceeds 5%, penalty is greater of: 3x Material Underpayment amount plus expenses, or $5,000 per month until paid. |
| Marketing Materials | N/A | VARIABLE | Franchisor's costs plus licensing fee up to 18%, plus shipping, handling, and storage costs. Only payable if franchisee requests multiple copies of advertising, marketing, and promotional materials. |
| Ongoing Purchases of Proprietary Products | N/A | VARIABLE | Full purchase price plus 18% licensing fee and actual cost of shipping, freight, insurance, and tax. Estimated at $5,000 to $10,000 per year. Only payable if franchisee purchases Proprietary Products from franchisor. |
| Interest on Late Payments | 18.0 | PCT | 18% per year (but not more than highest rate allowed by law). Only charged on overdue amounts if not paid within 30 days of due date. Interest accrues from original due date. |
| Returned Check Fee | 100.0 | VARIABLE | Greater of: (a) $100; or (b) 5% of check amount, plus actual bank charges. Only payable if check or electronic transfer is dishonored due to insufficient funds or account closed. |
| Late Fee for Delayed Payment | 10.0 | PCT | 10% of any payment not received within 10 days of due date. |
| Late Fee for Delayed Filing of Required Reports | 50.0 | VARIABLE | $50 per occurrence, plus additional $30 per day for each day past deadline report not submitted. For Corporate Contracts, 5% of each enrolled corporate child's tuition per day the child is enrolled. |
| Bank Fees | N/A | VARIABLE | Reasonable and customary bank ACH charges. Only payable on ACH fees franchisor collects for family tuition payments. |
| Training Fee | 1500.0 | FIXED | $1,500 for each additional person to be trained. Payable if franchisee: (a) sends more than 2 individuals to franchise training program; or (b) employs a new Center Director. |
| On-Site Training Program | 1500.0 | FIXED | Only payable if franchisee employs new Center Director or Business Manager, there is no training scheduled or available within 60 days of beginning employment, and franchisor provides on-site training. |
| Refresher Non-Attendance Fee | 500.0 | FIXED | Only payable if franchisee fails to attend refresher training twice in one year. |
| Securities Offering | 25000.0 | VARIABLE | Greater of: (a) $25,000; or (b) actual costs and expenses incurred in reviewing securities documents. Only payable if franchisee makes offering of securities, stock, ownership, or partnership interests. Securities offerings are a form of transfer. |
| Alternative Supplier Inspection | N/A | VARIABLE | Only payable if franchisee requests to purchase from other than approved suppliers and franchisor inspects and evaluates supplier's products or services. |
| Insurance Policy Review Fee | 1500.0 | FIXED | Only payable if franchisee does not use one of franchisor's preapproved insurance brokers and/or insurers. |
| Insurance - Reimbursement of Costs | 18.0 | PCT | Amount of premiums and actual expenses plus 18% of these costs. Only payable if franchisee fails to purchase and maintain or provide adequate evidence of required insurance and franchisor obtains insurance (which franchisor is not obligated to do). |
| Indemnification | N/A | VARIABLE | Only payable if franchisor or individuals associated with franchisor incur losses due to franchisee's activities. |
| Costs and Attorneys' Fees | N/A | VARIABLE | Only payable if franchisee is in default. Franchisee must reimburse franchisor for expenses (including reasonable attorneys' fees) as a result of default and to enforce and terminate the agreement. |
| Fee for non-attendance at Convention | 1500.0 | VARIABLE | Greater of: (i) $1,500; or (ii) 80% of the cost charged to franchisees to attend the convention. Only payable if franchisee fails to attend annual convention. |
| Management Fee | 4.0 | VARIABLE | Out-of-pocket costs, plus 20% of Center's profits, plus greater of: (a) 4% of Center's Gross Revenue; or (b) $2,500. Only payable if franchisor is managing franchisee's Center. See Exclusive Center Management Agreement. |
| Lost Future Royalties | N/A | VARIABLE | Present value of average monthly Royalties from 12-month period preceding termination multiplied by number of months remaining in initial term. Only payable if franchisor terminates Franchise Agreement due to franchisee's default. |
| Liquidated Damages | 6.0 | VARIABLE | 6% of single highest monthly Gross Revenue from previous 36 months × 12 × number of remaining years, reduced to net present value using 6% discount rate, plus default rate of 2x that value. Only payable if franchisor terminates due to default or if franchisee improperly terminates. |
| Bookkeeping Service Fee for Managed Centers | 250.0 | FIXED | Only payable if franchisor is managing franchisee's Center and franchisee elects to use franchisor's bookkeeping services under a Bookkeeping Services Charge Agreement. |
| Late Data Fee | 150.0 | FIXED | Only payable if franchisee entered Bookkeeping Services Charge Agreement and fails to timely gather relevant data. Payable for each day franchisor assigns staff to franchisee's Center to correct reporting capacity. |
Category
Education
System Size
417 units
Franchise Score
out of 100
The Learning Experience operates early childhood education centers serving infants through pre-K students with play-based learning curriculums. The franchise emphasizes STEM education, social-emotional development, and individualized attention in nurturing classroom environments.
Median Revenue
$2,269,043
per year, per location
Mean Revenue
$1,898,665
per year, per location
Estimated Owner Profit
$453,809
per year
Profit Margin
20.0%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 2.5 years
Based on midpoint investment of $1,129,049 and estimated annual owner profit of $453,809.
Avg. Annual Closure Rate
N/A
Net Unit Growth
+117 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 269 | — | — | — | 301 |
| 2023 | 301 | — | — | — | 326 |
| 2024 | 326 | — | — | — | 386 |
Based on the FDD data, here is a data-driven snapshot of the The Learning Experience franchise opportunity:
Overall Score
87/100
Strong opportunity
Est. Payback Period
2.5 yrs
Fast payback
Risk Level
N/A
Insufficient data
The Learning Experience scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,269,043 and a combined fee burden of 8.0% 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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